Legal
Jefferies-Backed Fund Accuses Ex-Portfolio Manager of Fraud
- 352 Capital says Jordan Chirico poured $107 million into scam
- Fund files lawsuit against Chirico, others in NY federal court
Jefferies headquarters in New York.
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
A hedge fund that’s part of Jefferies Financial Group sued its former portfolio manager, claiming he orchestrated an investment of more than $100 million in a Ponzi-like scam.
The fund, 352 Capital, filed a lawsuit last week against Jordan Chirico, saying he directed the purchase of a large quantity of bonds issued by a company that claimed to operate thousands of filtered water vending machines. According to the suit, Chirico knew these machines didn’t exist but put 352’s money in the scheme in part to recoup his own investment.