Wednesday, 6 May 2015
Last updated 18 hours ago
Jan 7 2008 | 1:30pm ET
A litigious Colorado millionaire has filed suit against Absolute Capital Management Holdings co-founder Florian Homm, accusing him of defrauding investors in the once high-flying hedge fund.
Jack Grynberg, an oil and natural gas developer best known for a flurry of lawsuits arguing that more than 70 energy companies owed billions of dollars to the U.S. government for oil and gas exploration on federal and Native American tribal lands, accused Homm of buying highly-illiquid penny stocks for AbCap’s funds through a brokerage firm he owned.
According to Grynberg, Homm and co-defendant Todd Ficeto each owned half of Beverly Hills, Calif.-based Hunter World Markets, which sold pink sheets to AbCap. The suit alleges that Hunter earned a commission on the pink sheets, the value of which Grynberg says Homm inflated, taking a 20% cut as his incentive fee for his role as manager of the AbCap funds. In addition, Grynberg accuses Homm of lying to investors by putting as much as 44% of the funds’ assets into pink sheets, while telling investors that investments in unlisted companies would be capped at 10%.
“Homm intended, with the assistance of Ficeto and Hunter, to invest as much as possible of plaintiffs’ funds into Pink Sheet, unlisted and illiquid stocks by purchasing them through his secretly owned brokerage, Hunter,” the suit alleges. Hunter is named in the suit; AbCap, from which Homm abruptly resigned in September, is not.
Grynberg said he hat invested a total of $12 million in three AbCap funds. The firm has since suspended redemptions in four funds—including the three Grynberg invested in—for a year.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…