DENVER (CN) – Absolute Capital Management and its five directors defrauded investors of “hundreds of millions of dollars of securities in illiquid U.S. penny stocks in the names of multiple Absolute Capital hedge funds,” a class action claims in Federal Court. The hedge funds’ values dropped by 40% when the truth was revealed in September 2007, plaintiffs say.
The seven hedge funds involved are or were called the Absolute East West Fund Ltd., Absolute East West Fund, Absolute Return Europe Fund, Absolute Octane Fund, Absolute Octane Fund LP, Absolute Activist Value Fund and the European Catalyst Fund Ltd.
Here are the individual defendants: Florian Homm, a “founder and director” and Chief Investment Officer of Absolute Capital Management (ACM); Sean Ewing, CEO of ACM; John A. Fleming; Ronald Evan Tompkins; and Ullrich Angersbach, directors. Angersbach is from Germany; the other individuals are all described as “foreign national(s).”
Plaintiffs’ lead counsel is Daniel Wake with Sander Ingebretsen & Parish.