Filmmaker Roger Corman Sues Over Losses From Buddy Fletcher
by Edvard Pettersson
5:53 PM PDT
March 23, 2015
(Bloomberg) -- Filmmaker Roger Corman sued a hedge-fund administrator that he blames for losses of as much as $60 million when money manager Alphonse “Buddy” Fletcher’s master fund went bankrupt.
Corman, whose movies include Edgar Allan Poe adaptations “House of Usher” and “The Raven,” and his wife claim that Citco Group Ltd. in 2008 transferred its management of $73 million in a Virgin Island entity to
Fletcher without telling them, and should have known better.
“Citco did not inform the Cormans that Fletcher would be a poor manager or that he was already engaged in fraud and mismanagement of other funds under his control,” the Cormans said in a complaint filed Monday in state court in Los Angeles.
Fletcher is the husband of Ellen Pao, the former junior partner at Kleiner Perkins Caufield & Byers whose gender discrimination lawsuit against the Silicon Valley venture capital firm is on trial in San Francisco state court.
The U.S. trustee in charge of liquidating Fletcher International Ltd. said in 2013 that Fletcher’s company was a fraud that didn’t make a single profitable investment after Aug. 31, 2007. According to the trustee, Fletcher funnelled money out of the fund before it went bankrupt with the intent to defraud investors.
Corman accuses Amsterdam-based Citco Group of breach of fiduciary duty, constructive fraud and negligence, among other claims. He seeks unspecified damages.
Andrew G. Gordon, a lawyer who represents Citco Group in a lawsuit brought by three Louisiana pension funds over losses from their investments in Fletcher’s fund, declined to comment on Corman’s lawsuit.
Fletcher didn’t immediately respond after regular business hours to a phone message left for him at a number listed in court records.
The case is Corman v. Citco Group Ltd., BC576379, California Superior Court, Los Angeles County