NY Attorney General James Wins Nearly $7 Million in Relief for Defrauded Investors, Removal of Private Equity Fund Manager
Court Finds “Breaches of Fiduciary Duty, Misappropriation of Enormous Sums of ACP Capital, and Outright Fraud”
Court Holds Six-Year Martin Act Statute of Limitations Applies Retroactively
NEW YORK (STL.News) New York Attorney General Letitia James yesterday scored a major victory for investors defrauded by a private equity fund manager who misappropriated millions of dollars in investor assets. Yesterday afternoon, New York County State Supreme Court Justice Barry R. Ostrager found the defendants — fund manager Laurence Allen; ACP Investment Group, LLC; NYPPEX Holdings, LLC; ACP Partners X, LLC; and private equity fund ACP X, LP — liable for defrauding investors in ACP X, ordering Allen and the various corporate entities he controls to pay nearly $7 million in relief, in addition to appointing a receiver (a neutral third-party) tasked with winding down the fund so that investors can no longer be defrauded.
“This decision shows that corporate greed never pays,” said Attorney General James. “For years, Laurence Allen bilked investors out of millions of dollars and used this investment fund like his private piggy bank. With this decision, we are delivering nearly $7 million in relief to those who were defrauded and winding down this fund to finally end this fraudulent scheme.