NY-AG v. Laurence Allen

Laurence Allen allegedly defrauded investors and misappropriated millions of dollars in ACP X assets to enrich himself and his companies between 2008 and 2018, according to NY-AG. Allen and the “maze of entities” he owned and controlled allegedly defrauded ACP X’s investors by making “hopelessly conflicted” investments of fund assets in NYPPEX Holdings. NYPPEX Holdings allegedly utilized these funds to pay Allen exorbitant NYPPEX annual salaries, totaling approximately $6 million, as well as to pay the salaries of his staff rather than paying those returns to investors, according to NY-AG. Allen and the defendants under his control allegedly profited by taking millions of dollars in carried interest to which they were not entitled, and by wrongfully causing ACP X to cover NYPPEX Holdings’ operating expenses, according to NY-AG.

Summary generated from official New York Attorney General press release