Financial Services Co. Funneled Millions To Execs' Kin: Suit

Law360, Los Angeles (May 22, 2013, 4:42 PM EDT) -- A venture capital firm filed a securities fraud lawsuit Monday in New York federal court against The Cash Store Financial Services Inc. claiming that CSFS overstated its assets by $44 million and belatedly disclosed that it improperly funneled millions of dollars to its executives' relatives.

New York-based Globis Capital Partners LP, which owns CSFS stock, alleges in its complaint that the Edmonton, Canada-based CSFS misstated the value of $116 million worth of loans as well as intangible assets it purchased in January 2012. The corrections caused...
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