Wednesday, 29 June 2016
Last updated 14 min ago
Nov 19 2009 | 1:03pm ET
According to commodity hedge fund honcho Paul Touradji, all of his legal troubles are the fault of a pair of former employees.
The Touradji Capital Management founder said that a “malicious” rumor-mongering campaign on the part of Gentry Beech and Robert Vollero, as well as Beech’s father, Gary, was the source of collapsed hedge fund Amaranth Advisors’ recent lawsuit against himself and his hedge fund.
That lawsuit, which was dropped earlier this week, came after the Beeches and Vollero spread the rumor that Touradji had scammed Amaranth when it bought the failing firm’s base metals portfolio, Touradji told HedgeFund.net. Amaranth had sued Touradji for $350 million, alleging that the man and his eponymous firm used inside information obtained in its deals with Amaranth in “improper trading practices and misuse of plaintiff’s proprietary and confidential information.”
Amaranth dropped the case after it “received and evaluated additional information” received from Touradji, the two hedge funds said in a joint statement.
Touradji is involved in a nasty set of legal battles with the Beeches and Vollero. Gentry Beech and Vollero have sued the hedge fund, claiming that some $50 million in bonuses have been withheld. Gary Beech has also sued the hedge fund, alleging he defrauded his Beech Capital of $8.2 million in a joint-venture between Touradji and Beech Capital.
In a countersuit filed earlier this month, Touradji all but called Beech and Vollero incompetent, alleging they were “responsible for the destruction of millions of dollars of investor capital through a pattern of fraud, breaches of fiduciary duty, mismanagement and utter disregard for the interests of the investors.” It also accused Gary Beach of stealing money from the joint-venture.