Fugitive Hedge Fund Founder To Return To Canada

Oct 30 2007 | 2:30pm ET

The founder of collapsed Canadian hedge fund Portus Alternative Asset Management will return to Toronto next month to face fraud charges, court-appointed receiver KPMG said today.

A court in Israel, where Boaz Manor fled just before the Ontario Securities Commission seized his firm’s assets, lifted a travel ban that KPMG asked the court to impose two years ago. Manor is expected to fly to Toronto on Nov. 13, where he has been charged by the Royal Canadian Mounted Police with fraud and obstruction of justice. Portus co-founder Michael Mendelson has also been charged.

KPMG, which had been unable to reach an agreement with Manor on the fate of a Portus-related case making its way through Israeli courts, had sought to extend the travel ban. But those issues have apparently been resolved to KPMG’s satisfaction.

Manor will only be allowed to travel under a strict set of guidelines. He will have to be accompanied to the airport by both his lawyer and an attorney from KPMG. Further, he will be babysat on the long flight to Toronto by the KPMG lawyer, before surrendering to the Mounties in Canada.

Further, KPMG won the right to continue its civil case against Manor in Israel, seeking to recover diamonds that Manor reportedly took with him when he fled Canada. Manor’s lawyers had sought to stay that case and move the civil proceedings to the Canadian courts.

“We are extremely pleased with the reported decision as it ensures that Mr. Manor will face justice in Canada while ensuring that the rights of the investors to recover assets from him are preserved,” KPMG’s Robert Rusko said.

Separately, KPMG announced an interim payment to Manor’s alleged victims. Proven claimants against Portus—numbering some 16,000 clients—will receive 15 cents on the dollar.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.