Cases & Deals

Foreign investors initiate civil and criminal actions following multimillion embezzlement scheme

Client(s) Foreign investors

Jones Day represents a group of foreign investors who were victims of a multimillion embezzlement scheme orchestrated by their investment manager. The manager forged documents to obtain million dollar loans against properties in the United States owned by the investors and then funneled the money to herself and others. The total loss was in excess of $23 million. Jones Day sought and obtained a permanent injunction to remove the agent from all aspects of the business.

Jones Day also represented the investors in civil actions against individuals and corporate entities that received proceeds from the fraud, in addition to an action against a financial institution that allegedly paid the manager kickbacks for the fraudulently obtained loans. Jones Day also served as a liaison for the investors with federal law enforcement. The manager pleaded guilty to wire fraud and will be sentenced in December 2018. The civil action and financial recovery efforts are ongoing.