Furious Touradji Absolutely Destroys Ex-Employees That Dared Sue

Posted by Jon Shazar, Nov 05, 2009, 3:56pm

Quite a few months back, a couple of former Touradji Capital Management employees sued the hedge fund for some $50 million in unpaid bonuses. Yesterday, in its own lawsuit, Touradji made explicitly clear why it didn’t pay Gentry Beach and Robert Vollero the money they think they are owed. And the hedge fund is demanding $250 million for its trouble.

In the 55-page suit, Touradji lays out in exquisite detail what a couple of screw-ups Beach and Vollero allegedly are. A selection:

  • “Beach and Vollero were responsible for the destruction of millions of dollars of investor capital through a pattern of fraud, breaches of fiduciary duty and utter disregard for the interests of the investors whose capital they were obligated to protect.”
  • Beach’s father stole $500,000 from a joint-venture private equity investment with Touradji. “Contemporaneously with these events, on September 26, 2008, Gentry Beach claimed that he was ‘forced to resign’ from Touradji Capital—even filing a false police report in which he claimed he had been threatened—when in fact he had already set up a competing business well before that time.”
  • After Beach left the firm, “Vollero remaind at Touradji Capital deviously and unethically gathering confidential information about the firm and creating a fraudulent record concerning his compensation….”
  • “Not content to have inflicted this harm on Touradji Capital and its investors, Beach and Vollero—who were paid millions of dollars while at Touradji Capital—have no filed a complaint in which they demand over $50 million in additional compensation,” even though the “supposed agreement… was never set forth in a written contract.”
  • “Beach and Vollero’s claim for millions of dollars in additional bonus compensation is therefore a particularly brazen example of the sort of stomach-turning greed and entitlement that has made headlines for the past year.”
  • “Beach and Vollero’s claim… is also based upon the false premise they had nothing to do with the poor performance of Touradji Capital’s private equity investments.”
  • “Beach, in particular, was fundamentally incapable of managing a trading portfolio…”
  • “Put simply, the idea that Beach and Vollero—who raised virtually no capital and who did not even possess the experience or skills that they had represented to Touradji at the time they were hired—would themselves be entitled to a majority of the profits to be earned by Touradji Capital from its Funds’ equity portfolios, is preposterous.”
  • “Beach’s fundamentally dishonest nature…”
  • “Beach had thus long ago ‘ruined’ his own marriage, yet now has cynically turned that conduct into a false allegation about Touradji.”
  • “Nor were Beach and Vollero’s lies and misconduct limited to their business dealings while at Touradji Capital.”
  • “As Beach once secretly confided to Vollero, ‘We can overcome our weaknesses together.’ This statement also aptly describes this very lawsuit: A collusive effort by two young men to fabricate a claim for compensation when the evidence defeats such a claim absolutely.”

Wow.

Touradji Capital v. Gentry Beach and Robert Vollero

Touradji Sues Former Employees, Alleging ‘Mismanagement’ And ‘Utter Disregard’ [FINalternatives]

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Tags: amazing court filings, do not mess with Paul Touradji

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