Jim Chanos
Scott Mlyn | CNBC
Famed quick vendor Jim Chanos known as a lawsuit accusing him of embezzling funds for private use, “false, baseless and defamatory.”
Chanos gave the assertion to CNBC’s Scott Wapner in response to allegations made by a former investor in Chanos & Co.
Conlon Holdings, a Chicago-based agency run by Sean Conlon, filed the swimsuit in New York state courtroom over the weekend, alleging that Chanos used his agency as a “piggy financial institution” with $10 million of excellent loans that he borrowed from his firm over greater than a decade. The swimsuit was initially reported by Bloomberg Information.
“As Mr. Conlon is aware of, the inner mortgage was paid off in 2021, and since 2019 I’ve put over $30 million into my firm,” Chanos mentioned within the assertion. “Certainly, all of my fellow administration firm companions have misplaced cash over the previous few years, none greater than me. Mr. Conlon is just attempting to mitigate his losses by this crude shakedown try.”
Conlon did not instantly reply to a request for remark.
Chanos, greatest identified for calling the collapse of power buying and selling firm Enron, closed his hedge fund late final 12 months and transformed it to a household workplace and advisory enterprise. His resolution got here after years of underperformance the place quick bets together with Tesla did not work.
The lawsuit additionally alleged that Chanos bought his Miami condo that was formally owned by Chanos & Co. for $17.8 million earlier this month with out giving his companions advance discover. In the meantime, the swimsuit mentioned Chanos’ girlfriend, Crystal Conners, was the gross sales agent on the transaction, which might have made $540,000 at commonplace fee charges, Bloomberg reported.