NYC investment fund chief charged with $9M theft

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Associated Press

Posted on February 10, 2014 at 9:00 PM

Updated Monday, Feb 10 at 11:01 PM

NEW YORK (AP) — A New York City investment fund manager has been charged with siphoning $9.3 million to pay for a car, his credit card payments and other personal expenses.

Lawrence E. Penn III pleaded not guilty Monday to grand larceny and other charges.

Penn manages a private equity fund called Camelot Acquisitions: Secondary Opportunities LP.

Manhattan district attorney Cyrus R. Vance Jr. says Penn had the fund pay a shell company supposedly to do due diligence reviews but then had the money funneled back into his control.

The federal Securities and Exchange Commission made similar allegations in a civil suit last month.

Defense lawyer Benjamin Brafman says Penn will address the allegations "in a responsible and timely manner." Brafman says the allegations don't affect fund assets now held in custody.

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