FloridaMan88
09-03-2017, 11:30 AM
New Mexico sues Chiefs owner Clark Hunt, alleging kickback in $300 million investment
Link: http://www.kansascity.com/sports/nfl/kansas-city-chiefs/article171107222.html
BY ROBERT A. CRONKLETON
bcronkleton@kcstar.com
Kansas City Chiefs owner Clark Hunt secured hundreds of millions in investment money through a kickback deal tied to former New Mexico Gov. Bill Richardson’s administration, the state claims in a lawsuit.
The New Mexico State Investment Council filed the lawsuit in late August in the 1st Judicial District Court in Santa Fe. It names as defendants Hunt, HFV Asset Management LP and others, who were named only as “John Does.”
The lawsuit contends that Hunt agreed to a kickback arrangement 12 years ago with political insiders Anthony and Marc Correra to use their influence to steer state investment money to a hedge fund firm in which Hunt was a partner, according to a story by the Albuquerque Journal. The Santa Fe New Mexican newspaper also reported the story Sunday.
As part of the agreement, Hunt agreed to pay Marc Correra 25 percent of the fees HFV received from the investment council, according to the lawsuit. Those payments were disguised by a fee-sharing deal through a Chicago-based broker-dealer that passed 90 percent of the fees it received from HFV to Correra, according to the Albuquerque Journal.
A call from The Star to Hunt’s office seeking comment was not immediately returned Sunday morning.
According to the Albuquerque Journal:
The Correras were considered political gatekeepers to the investment council. Companies paid them millions of dollars in finder’s fees for state business.
Hunt allegedly met with the Correras in Albuquerque, where they told him they could use their personal relationship with Richards and then-investment officer Gary Bland to get Hunt’s firm a substantial investment.
At the time, more than 80 firms were seeking investments from the council, which had sent out a request for proposals nationwide. HFV had already responded when it entered into the finder’s fee arrangement.
In May 2005, the investment council awarded HFV Management $300 million for investment in two hedge funds, three times what other hedge fund managers received.
Bland allegedly made the investment without seeking the approval of the council and despite the council’s adviser on hedge funds recommending that HFV not receive any state investments.
One of the hedge funds lost $13 million while Hunt and his partners were paid millions of dollars in management fees.
The investment council is seeking an unspecified amount in damages.
Link: http://www.kansascity.com/sports/nfl/kansas-city-chiefs/article171107222.html
BY ROBERT A. CRONKLETON
bcronkleton@kcstar.com
Kansas City Chiefs owner Clark Hunt secured hundreds of millions in investment money through a kickback deal tied to former New Mexico Gov. Bill Richardson’s administration, the state claims in a lawsuit.
The New Mexico State Investment Council filed the lawsuit in late August in the 1st Judicial District Court in Santa Fe. It names as defendants Hunt, HFV Asset Management LP and others, who were named only as “John Does.”
The lawsuit contends that Hunt agreed to a kickback arrangement 12 years ago with political insiders Anthony and Marc Correra to use their influence to steer state investment money to a hedge fund firm in which Hunt was a partner, according to a story by the Albuquerque Journal. The Santa Fe New Mexican newspaper also reported the story Sunday.
As part of the agreement, Hunt agreed to pay Marc Correra 25 percent of the fees HFV received from the investment council, according to the lawsuit. Those payments were disguised by a fee-sharing deal through a Chicago-based broker-dealer that passed 90 percent of the fees it received from HFV to Correra, according to the Albuquerque Journal.
A call from The Star to Hunt’s office seeking comment was not immediately returned Sunday morning.
According to the Albuquerque Journal:
The Correras were considered political gatekeepers to the investment council. Companies paid them millions of dollars in finder’s fees for state business.
Hunt allegedly met with the Correras in Albuquerque, where they told him they could use their personal relationship with Richards and then-investment officer Gary Bland to get Hunt’s firm a substantial investment.
At the time, more than 80 firms were seeking investments from the council, which had sent out a request for proposals nationwide. HFV had already responded when it entered into the finder’s fee arrangement.
In May 2005, the investment council awarded HFV Management $300 million for investment in two hedge funds, three times what other hedge fund managers received.
Bland allegedly made the investment without seeking the approval of the council and despite the council’s adviser on hedge funds recommending that HFV not receive any state investments.
One of the hedge funds lost $13 million while Hunt and his partners were paid millions of dollars in management fees.
The investment council is seeking an unspecified amount in damages.