MANHATTAN (CN) – Horizon Asset Management claims that Raymond Duffy, one of its “marketing employees,” exposed it to enormous liabilities and an SEC investigation by falsely advertising himself as CEO of one of Horizon’s marketing divisions, an alleged “independent, federally registered investment adviser.”
Horizon claims the SEC “uncovered defendant Duffy’s misconduct” in a routine audit in March 2007. Horizon says it fired Duffy, and that its clients have not lost any money, but Horizon did.
Horizon claims it had to spend money on its own investigation, and that “Duffy’s deceitful actions caused some of Horizon’s clients to close accounts with the firm,” and that it had to pay other employees to work on Duffy’s accounts, while “Duffy continued to receive exorbitant compensation.”
Duffy worked for Horizon from March 1995 through Aug. 23, 2007. Horizon says Duffy falsely claimed, and advertised, that his “division” had more than 30 employees and managed more than $2 billion in assets. And it claims that it continued to pay Duffy $400,000 a month for 9 months after it fired him.
Horizon sued in New York County Court.