Delaware sued the fund Burns Southport Lane Management allegations that he traded insurance assets on the assets of "illiquid, overpriced, trudnootsenivaemye, impaired and non-existent." Louisiana also has launched an investigation against Southport on suspicion of fraud.
Twenty-eight Burns was considered a financial wunderkind. His mother told a friend and head of Twenty-First Securities Robert Gordon, that the son has found errors in the option pricing model, for which the authors have received the Nobel Prize. In 2010, Burns with partners founded Southport. "He wanted to be super-rich, - says the former president Southport Jeffrey Leach - and to build a billion-dollar business of insurance."
Burns was creating not only business, but also a beautiful legend. For example, he claimed that he studied at Yale, that kind of Chetfildov known since the "Mayflower" that his career began in the Twenty-First Securities, and was a partner Belstar Group. All this was not true.
The first insurance asset Burns became Dallas National Insurance (later - Freestone Insurance), is experiencing financial difficulties. The deal cost $ 50 million. When RifleLCA has been closed, it turned out that $ 50 million are registered on the balance of Beaconsfield Funding ABS Trust in 2011, established four days earlier. Then Southport for $ 25 million bought the insurer in Louisiana, but the money came not from her but from institutions affiliated with the Freestone, according to the lawsuit.
Burns lived on a grand scale. In New York, he was a regular at the club Grand Havana Room and charitable events, and always in the society beauties. In 2013, he graduated from Columbia University and donated $ 50,000 to veterans education. He moved in a historic building in Charlestown and bought the land in its suburbs resort with golf courses and horse riding.
Then Southport bought for $ 40 million painting attributed to Caravaggio. But, on the conclusion of the three auction houses, the picture was a copy.
Southport soon start selling stocks and investment portfolios of insurance companies to buy bonds and assets in the country. Marcus Carter, the former CEO of the Freestone, in January 2014 demanded an explanation from Burns. He promised that all will be well. But on January 31 he sent a friend sms from psychiatric ward: "I have a nervous breakdown." The Board of Directors would Freestonestunned to learn of new investment. We were notified regulators and hired a law firm to investigate. According to the appraiser Duff & Phelps, $ 25 million invested in an offshore insurer, burned, because the paper had not been transferred to Freestone. $ 100 million was planned to invest in a startup, but there is no evidence that the transaction was paid. $ 128 million has been invested in the company owning the rights to the "Caravaggio".
Freestone wrote off assets for $ 136 million and announced insolvency. On the balance is $ 70 million of illiquid assets. According to Burns, the Freestone went bankrupt due to the losses that arose before the asset purchase and which were not known to him. Guilty he did not admit the charges brought against him are not.
Twenty-eight Burns was considered a financial wunderkind. His mother told a friend and head of Twenty-First Securities Robert Gordon, that the son has found errors in the option pricing model, for which the authors have received the Nobel Prize. In 2010, Burns with partners founded Southport. "He wanted to be super-rich, - says the former president Southport Jeffrey Leach - and to build a billion-dollar business of insurance."
Burns was creating not only business, but also a beautiful legend. For example, he claimed that he studied at Yale, that kind of Chetfildov known since the "Mayflower" that his career began in the Twenty-First Securities, and was a partner Belstar Group. All this was not true.
The first insurance asset Burns became Dallas National Insurance (later - Freestone Insurance), is experiencing financial difficulties. The deal cost $ 50 million. When RifleLCA has been closed, it turned out that $ 50 million are registered on the balance of Beaconsfield Funding ABS Trust in 2011, established four days earlier. Then Southport for $ 25 million bought the insurer in Louisiana, but the money came not from her but from institutions affiliated with the Freestone, according to the lawsuit.
Burns lived on a grand scale. In New York, he was a regular at the club Grand Havana Room and charitable events, and always in the society beauties. In 2013, he graduated from Columbia University and donated $ 50,000 to veterans education. He moved in a historic building in Charlestown and bought the land in its suburbs resort with golf courses and horse riding.
Then Southport bought for $ 40 million painting attributed to Caravaggio. But, on the conclusion of the three auction houses, the picture was a copy.
Southport soon start selling stocks and investment portfolios of insurance companies to buy bonds and assets in the country. Marcus Carter, the former CEO of the Freestone, in January 2014 demanded an explanation from Burns. He promised that all will be well. But on January 31 he sent a friend sms from psychiatric ward: "I have a nervous breakdown." The Board of Directors would Freestonestunned to learn of new investment. We were notified regulators and hired a law firm to investigate. According to the appraiser Duff & Phelps, $ 25 million invested in an offshore insurer, burned, because the paper had not been transferred to Freestone. $ 100 million was planned to invest in a startup, but there is no evidence that the transaction was paid. $ 128 million has been invested in the company owning the rights to the "Caravaggio".
Freestone wrote off assets for $ 136 million and announced insolvency. On the balance is $ 70 million of illiquid assets. According to Burns, the Freestone went bankrupt due to the losses that arose before the asset purchase and which were not known to him. Guilty he did not admit the charges brought against him are not.
