Ex-Zwirn CFO Sues Firm Founder For Defamation

Jul 21 2009 | 7:04am ET

A former top executive at defunct hedge fund shop D.B. Zwirn & Co. says he got a bad rap and a bum I.O.U. from firm namesake Daniel Zwirn.

Perry Gruss filed suit against Zwirn, who turned over what was left in his hedge funds to Fortress Investment Group in May, accusing him of defamation and breach of contract. The suit alleges that Zwirn made Gruss a “scapegoat” for the purchase of a private jet with investor money without their knowledge, and says that Zwirn’s statements have kept Gruss from finding a new job since his “forced exit” from D.B. Zwirn three years ago.

According to the lawsuit, Zwirn told Gruss that he had to go so that the firm’s namesake could remain “pearly white” and “bullet-proof.”

“With Gruss out of the way, investors were told a series of false and misleading statements which sought to blame Gruss for any conceivable control issues at the company, and to shift the blame to Gruss without implicating Zwirn,” the suit, filed in Manhattan federal court, alleges.

Gruss also claims that Zwirn failed to make good on payments “in connection with his forced exit” from the New York-based firm, which shuttered its largest hedge funds last year.

Gruss is seeking $9.6 million in damages.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

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.