Return to search

A brief(ish) rundown of the Allen case

Update on NY attorney general’s case against NYPPEX chief; PFCFO Insights survey results; and a sponsored guest article on the complexities for private funds in the TCJA

Allen update: We published a breakdown of what we think are the major aspects of the Office of the New York State Attorney General’s allegations of fraud by Laurence Allen. If you missed our earlier reporting of the case, here’s Friday’s update. Among the allegations: that Allen filed “sham” documents to create the appearance of legitimacy for prohibited transactions from his ACP X fund to his NYPPEX firm; that employees were forced to sign off on self-serving valuations; and repeated concerns from investors and auditors. The attorney general’s office has also outlined what it claims were the mechanics of the supposed fraud, saying amendments to LP docs were meant to “trick” investors into accepting adverse terms that contradicted the original, and traditional, LPA terms.

Allen followed our conversation last Thursday with an emailed statement again denying charges, saying the attorney general had deliberately misrepresented ACP X’s investment activities and approved amendments. No investor affidavits have been filed, but there is a draft affidavit for investors who wish to publicly defend Allen and the fund. The order to show cause was signed today, and that is now set to happen on December 18.

CFO challenges: We’ve released our Private Funds CFO Insights Survey 2020, the result of PEI Media’s Research and Analytics team surveying 124 US private fund CFOs in July and August this year. Although there looks to be plenty to be optimistic about in the new year, the survey also takes a look at the unprecedented challenges CFOs face, as the compliance landscape becomes more onerous and investors demand more data and information.

TCJA: Withum’s Michael Oates guides us through some of the major complexities of the 2017 Tax Cuts and Jobs Act, as they related to private funds, in this sponsored article.

Email prepared by Graham Bippart