Fox News Blog – The former hedge fund of one of the Democratic Party’s most important donors was allegedly involved in a scheme to defraud foreign investors out of tens of millions of dollars, according to documents filed in a Texas court.
Farallon Capital Partners L.P., a fund run by Farallon Capital Management, the multibillion-dollar hedge fund founded by Democratic donor Tom Steyer, became a limited partner in a project to build a large shopping mall near Seattle, Wash., in the mid-1990s after it guaranteed a line of credit for the project.
According to the Texas case, Farallon and other parties involved in the deal allegedly operated “in conjunction with” foreign-owned corporations in Texas “to defraud a group of over three-hundred German investors out of approximately sixty-million dollars.”
A “Ponzi scheme” in which the companies planning to build what was to be called the Washington Supermall “transfer[red] millions of dollars in funds through ‘loans’ and ‘advances’ to other unrelated entities,” the plaintiffs alleged.
