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Sunday, July 14, 2024 | Back issues
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SEC Says Fund Manger Had Sticky Fingers

BOSTON (CN) - The boss of Waltham, Mass.-based GL Capital Partners misappropriated $16 million from a fund he managed, the SEC claims in court.

The SEC sued Daniel Thibeault, 40, of Framingham, and his companies: GL Capital Partners, GL Investment Services, Graduate Leverage dba GL Advisor dba GL Holdings Corp., and Taft Financial Services, on Jan. 9 in Federal Court.

The SEC also sued relief defendants Thibeault's wife, Shawnet Thibeault, and GL Advisor Solutions.

The SEC claims that Thibeault and GL Capital "misappropriated at least $16 million of the money that belonged to a closed-end interval fund they managed, the GL Beyond Income Fund."

Most of the fund's assets were individual variable rate consumer loans. The SEC claims that since 2013 the defendants created fictitious loans to divert money from the fund, reported the phony loans as assets, "and thereby concealed the fact that Thibeault and the other Defendants had misappropriated millions of dollars from the fund."

To do so, the agency says, the defendants fabricated paperwork "purporting to reflect numerous six-figure consumer loans using the names and personal information of individuals who were unaware that loans were being originated in their names."

It claims that the phony loans comprised at least two-fifths of the funds total reported assets of $40 million as of September 2014.

The SEC seeks disgorgement, penalties and an injunction.

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