Fox News Blog – The former hedge fund of one of the Democratic Party\u2019s 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.<\/p>\n
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.<\/p>\n
According to the Texas case, Farallon and other parties involved in the deal allegedly operated \u201cin conjunction with\u201d foreign-owned corporations in Texas \u201cto defraud a group of over three-hundred German investors out of approximately sixty-million dollars.\u201d<\/p>\n
A \u201cPonzi scheme\u201d in which the companies planning to build what was to be called the Washington Supermall \u201ctransfer[red] millions of dollars in funds through \u2018loans\u2019 and \u2018advances\u2019 to other unrelated entities,\u201d the plaintiffs alleged.<\/p>\n