MANHATTAN (CN) - Mark Evan Bloom, a "purported hedge fund manager ... embezzled millions from entities that support the education of children" through his solely owned company, North Hills Management, investors say in New York County Court.
Two foundations say they entrusted Bloom with $13.5 million, which he sued to "buy an ultra-luxurious, multimillion-dollar apartment for himself and his wife," then "concealed this theft for years by issuing false account statements that showed positive returns, by lying about the health of the Fund, and through other self-dealing transactions designed to line Bloom's pockets at investors' expense."
Plaintiffs say Bloom more $17 million more by putting it into the Philadelphia Alternative Asset Fund, "not because he thought it to be a prudent investment for North Hills, but rather because he acted as a third-party marketer for the PAAF fund - without disclosing his conflict of interest - and personally received a lucrative commission from PAAF.
"The PAAF fund, however, was the victim of a separate fraud. A federal court has frozen its assets because its principal defrauded its investors. The proceeds of the PAAF settlement are subject to a receivership in federal court in Philadelphia. Bloom also misappropriated the settlement distributions the PAAF fund has made to date. This self-serving investment in PAAF, along with Bloom's ravenous spending habits, have, according to Bloom, left North Hills without any material assets, despite the fact that the monthly account statements provided to [plaintiffs] ADF and ADI have not shown a loss in over seven years."
Plaintiffs are the Alexander Dawson Foundation and Alexander Dawson Inc., individually and derivatively on behalf of North Hills. They are represented by Maria Ginzburg with Kirkland & Ellis.
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