LOS ANGELES (CN) – Susan Sarandon sued her business and investment manager for breach of fiduciary duty and negligence, claiming he earned millions of dollars by investing her money in real estate investments that were “essentially illiquid.”
Sarandon and her company, Mother’s Milk sued Richard Francis and his firm Francis & Nachshon in Superior Court on June 12.
Sarandon claims that after she hired Francis to manage her investments he recommended that she place her money in real estate investments without mentioning that he and his sons had a financial interest in them, that they were “functionally illiquid,” or that the actress would have to sell them at a loss.
Francis placed most of Sarandon’s money in partnerships in which he had an interest and falsely claimed that she could sell them at any time, she says in the complaint.
“Francis’ plan was a complete success. Sarandon placed her trust and confidence in Francis and allowed Francis to invest her money in Francis’ own partnerships. On information and belief, Francis thereafter earned millions of dollars,” the lawsuit states.
Sarandon says that it was only after she parted ways with Francis in 2013 that he came clean and told her that the assets were for all intents and purposes illiquid and that she would have to sell them below their market value.
Sarandon is known for her roles in “Rocky Horror Picture Show,” “The Witches of Eastwick,” “Thelma & Louise” and others. She won an Academy Award for Best Actress for “Dead Man Walking” in 1996.
She seeks costs and damages for breach of fiduciary duty and negligence.
She is represented by Andy Baum, with Glaser Weil Fink Jacobs Howard Avchen & Shapiro.
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