Humane Society Sues Money Manager

(CN) - The Humane Society claims a money manager fraudulently backdated a $5 million investment, costing the nonprofit $240,000. The animal advocacy group claims Manchester Capital Management and its vice president Bayard Kraft III did it to offset the losses Manchester had suffered in the month before the Humane Society invested the $5 million.

The Humane Society of the United States sued Manchester and Kraft in Rutland, Vt., Federal Court.

The Humane Society claims it delivered $10 million to Manchester on Oct. 1, 2008, to invest in the Equinox Alternative Offshore Fund, Manchester's "investment vehicle." The Humane Society says it forked over another $5 million a month later, but Manchester backdated that investment, making it "at risk" for October.

Manchester knew its October investments were operating at a loss when did that, Humane Society says.

"Due to the October 2008 market performance of Equinox's investments, Manchester's backdating of the Humane Society of the United State's $5 million investment immediately reduced its initial value by approximately $240,000, a loss of about 4.8% in the principal, which in turn caused the loss of future gains attributable to the initial $240,000 loss," the complaint states.

The Humane Society claims that Manchester and Kraft "had both the motive and opportunity to commit fraud."

It demands compensatory and exemplary damages.

It is represented by Dennis Johnson with Johnson Perkinson in South Burlington, Vt.

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Email *

Submit