Saturday, 28 March 2015
Last updated 14 hours ago
Jul 16 2009 | 10:59am ET
A former congressman is suing the Carlyle Group over the collapse of a mortgage-backed securities hedge fund last year.
Michael Huffington accuses Carlyle and co-founder David Rubenstein of misrepresenting the risk of Carlyle Capital Corp. The mortgage hedge fund, which employed tens of billions in leverage, missed a margin call in March 2008, leading banks to seize its assets and liquidate the fund.
Huffington, who lost $20 million on Carlyle Capital, said he was personally assured by Rubenstein—introduced to him by former President George H.W. Bush—that the fund was “low risk.” He said that Rubenstein visited him in Boston to push the fund, and told him in a 2006 letter that its “downside is very limited.” What’s more, after the fund collapsed, Huffington said Rubenstein assured him, “I guarantee you will get your money back.”
“Mr. Huffington did not get his money back,” the lawsuit, filed in Massachusetts state court, alleges.
Huffington’s suit is the first stemming from the collapse of Carlyle Capital.
Huffington, a Republican, represented southern California in Congress for one term in the early 1990s. He narrowly lost a bid for the U.S. Senate in 1994—the year when Republicans took control of both houses of the U.S. Congress—and was once married to Arianna Huffington, the conservative-turned-liberal commentator and blogger.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
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…