Jim Chanos
Scott Mlyn | CNBC
Famed short vendor Jim Chanos referred to as a lawsuit accusing him of embezzling funds for individual use, “fake, baseless and defamatory.”
Chanos gave the statement CNBC’s Scott Wapner in response to allegations made by a previous investor in Chanos & Co.
Conlon Holdings, a Chicago-dependent company operate by Sean Conlon, filed the go well with in New York Condition court in excess of the weekend, alleging that Chanos applied his company as a “piggy bank” with $10 million of fantastic financial loans that he borrowed from his business over additional than a 10 years. The accommodate was initially documented by Bloomberg News.
“As Mr. Conlon is aware, the interior mortgage was paid off in 2021, and since 2019 I have set around $30 million into my organization,” Chanos stated in the assertion. “In fact, all of my fellow administration firm associates have missing money above the previous few a long time, none more than me. Mr. Conlon is just hoping to mitigate his losses by this crude shakedown try.”
Conlon didn’t immediately reply to a ask for for comment.
Chanos, most effective regarded for calling the collapse of energy buying and selling organization Enron, shut his hedge fund late very last 12 months and transformed it to a spouse and children business office and advisory business enterprise. His determination arrived right after a long time of underperformance the place shorter bets which include Tesla didn’t operate.
The lawsuit also alleged that Chanos offered his Miami condominium that was formally owned by Chanos & Co. for $17.8 million before this month without the need of supplying his partners progress recognize. Meanwhile, the go well with said Chanos’ girlfriend Crystal Conners was the sales agent on the transaction, which would have made $540,000 at regular commission prices, Bloomberg noted.
