Paul Touradji Launches Counterattack Lawsuit ~ market folly

Friday, November 6, 2009

Paul Touradji Launches Counterattack Lawsuit

Originally, Gentry Beach and then Robert Vollero sued former employer Touradji Capital claiming they were owed $50 million in unpaid bonuses. Well, Paul Touradji & hedge fund Touradji Capital have sued right back, seeking $250 million as they claim the two men were "responsible for the destruction of millions of dollars of investor capital through a pattern of fraud, breaches of fiduciary duty, mismanagement and utter disregard for the interests of the investors whose capital they were obligated to protect."

The Touradji counter-attack took a no holds barred approach visible even from the table of contents of the legal proceedings with some heated talking points referring to Beach and Vollero, citing their lackluster 2007 performance, construction and supervision of an 'abysmal' private equity effort, and of course the demotion back to analyst. Rather than writing all the details out, we figured you should just check out all the juicy stuff in the legal filing itself. All you need to read is the table of contents and first section to see how Touradji has come out swinging.

Embedded below is the legal document (RSS & Email readers come to the blog to read it):

Also, you can download the .pdf here.

In the original suit launched against Touradji, all counts but two were dismissed. Touradji of course is a 'Tiger Cub' as he previously worked for Julian Robertson at Tiger Management before launching his commodities hedge fund that is now ranked 16th in Barron's hedge fund rankings.

Taken from our post on 'Tiger Cub' biographies, "Paul Touradji is the President and Chief Investment Officer of Touradji Capital Management LP, a New York-based hedge fund specializing in fundamental research and active investment in commodities and related assets. The firm manages approximately $3.5 billion and invests in both the public and private markets. Mr. Touradji has well over a decade of experience investing in the commodity, equity, and macro markets. Mr. Touradji began his commodities career at Tiger Management in the mid '90s, where he managed the commodities team; it was at Tiger that he developed his fundamental approach to analysis and investment in commodities. Prior to Tiger, Mr. Touradji’s specialty was quantitative arbitrage, principally with O’Connor Partners. Mr. Touradji is a 1993 graduate of the McIntire School of Commerce at the University of Virginia and a Certified Financial Analyst."

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