PayPal Cofounder Accused Of Ripping Off Investor

Law360, New York (August 29, 2006, 12:00 AM EDT) -- The cofounder of online payment processing company PayPal Inc. fraudulently undervalued an investment firm’s share in his hedge-fund management company in order to avoid paying a huge return generated by PayPal’s success, according to a federal securities fraud lawsuit.

The lawsuit, filed Monday by risk capital investment company Amisil Holdings Ltd., names PayPal cofounder and former CEO Peter A. Thiel and his hedge-fund management company, Clarium Capital Management LLC.

Amisil, organized in Cyprus and headquartered in Bermuda, is seeking up to $18 million, the suspected value...
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