Law360, New York (July 09, 2012, 5:31 PM ET) -- Eden Rock Capital Management LLP and several affiliates hit Capstone Capital Management Inc. with fraud and breach of contract claims Friday in New York, claiming it diverted $150 million in investments to unauthorized real estate ventures that later failed.
Eden Rock and its affiliates, including successor-in-interest SFR Holdings Ltd., claim Capstone and its officers misrepresented their intentions in marketing materials and investment agreements for the Capstone Partnerships funds.
Despite claiming to have established a lending strategy focused on short-term investments in presold finished goods and products...
PE Firm Sank $150M Into Risky Real Estate, Fraud Suit Says
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