A well-known Silicon Valley investor has initiated a legal battle against his previous employer, one of the globe’s largest asset management firms, alleging fraud and attempts at bribery.
Josh Raffaelli, who served as a fund manager at Brookfield Asset Management until late last year, filed a lawsuit in California accusing the company of mistreating investors in his funds as it tried to offset losses in other business areas.
The detailed 84-page complaint highlights Raffaelli’s close relationship with Elon Musk, which granted his funds privileged access to invest in Musk’s private enterprises — a rare opportunity within Silicon Valley. However, Raffaelli claims that Brookfield unlawfully restricted the investment amounts his funds could allocate to one of Musk’s companies on behalf of Brookfield’s clients.
According to the lawsuit, Brookfield terminated Raffaelli shortly after he submitted a whistleblower complaint to the Securities and Exchange Commission in December.
Mark Mermelstein, representing Raffaelli, stated, “The firm repeatedly violated the trust and interests of its investors and dismissed the employee who raised concerns about these actions.”
Brookfield Asset Management oversees assets exceeding $1 trillion on behalf of pension funds, government investment entities, and financial institutions. Until January, its chairman was Mark Carney, who recently became Canada’s prime minister.
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