Amerindo Update: Yes We Have None of Your Money

There is an updated SEC complaint out with respect to the alleged financial mismanagement of client accounts at former high-flying technology fund Amerindo. It is stupendously (accent on the “stupe” part) fascinating, if only because of the amazing apparent high-handedness of Amerindo principals Tanaka and Vilar.

For example, there was the time Vilar told a client that he had put her $5mm (that she wanted back) on deposit with the SBIC, and, sadly, he wouldn’t be able to return the money just that moment. (Note: The SBIC doesn’t take capital on deposit.) And then there was the $12mm that the client had in other Amerindo accounts. While she asked for that money, Vilar deployed what should henceforth be called the “Panama gambit”. He wrote a letter telling the client’s lawyer that the redemption request would have to made elsewhere — like Panama:

The Investment Management Agreement requires that the client notify the office where the account is lodged of its decision to terminate its service in writing. [L.C.] should write a letter to the Amerindo office where she has been a client for the better part of 20 years, which is: Amerindo Investment Advisors, Inc., Calle Elvira Mendez, Vallarino Building, 6thFloor P.O. Box 4415, Panama 5, Republic of Panama. She can also send a signed copy of this notification to the London office, which coordinates administration.

Amazingly brazen stuff. Read the whole thing though; it’s valuable and cautionary stuff.

Related posts:

  1. “Alberto is Currently Incarcerated. Please Call Back Later.”
  2. National “Rich Guys Steal Stuff” Week
  3. The VC Twist on the Vilar Story
  4. The Sad Saga of Alberto Vilar
  5. More Yubnub-ing

Comments

  1. Nothing like a good corporate law stomach churner.
    The SEC should flog some of this stuff on Amazon.