Hedge Fund Big Sued For Welching On $50 Million In Bonuses


Since this has been going on for three years it’s hard to tell if it just greed or a reaction to the economy. Since he was allegedly successful it sounds like former.

NY Post: Rising hedge-fund star Paul Touradji has stiffed a pair of employees at his highflying Touradji Capital Management of nearly $50 million in bonuses, according to a lawsuit filed late yesterday.

According to the suit which was filed with the State Supreme Court and obtained by The Post, Touradji bullied portfolio managers Gentry Beach and Robert Vollero and ultimately refused to pay their bonuses for nearly three years of work. Vollero and Beach are owed around $23 million each.

Beach, a former Morgan Stanley banker, and Vollero joined the firm in 2005.

The duo kicked off relative-value equity energy fund DeepRock Partners and also managed Touradji OG, which generated profits of nearly $100 million in 2005 alone.

Interesting that Touradji once worked for Julian Robertson‘s Tiger Management. And apparently had been doing well, particularly recently when everyone else wasn’t. But this wasn’t Touradji’s first tangle with the legal system:

About four years ago, a fund co-founded by Catequil Asset Management imploded amid accusations by Touradji’s one-time business partner, Richard Ellis, that Touradji had misappropriated almost $1 million from the hedge fund.

That suit has since been settled, with terms left undisclosed.

What’s more, in a family twist, Gentry Beach’s father, Gary, has filed a lawsuit in Texas against Touradji, claiming the hedge honcho reneged on separate contractual agreements.

Gentry Beach also filed a report with New York City police, saying…Touradji threatened Beach warning, “I will destroy you and your career no matter what the cost.”