Old Hill Partners and Its Private Hedge Funds Allegedly Defrauded Investors
Westport Hedge Fund Manager John Howe Accused of Tax Fraud, SEC Violations and Siphoning Client Funds
On the surface, Westport, Connecticut's John Christopher Howe appears to have it all and to come from the right pedigree. He went to the elite Middlesex prep school of Concord, Massachusetts where he met his wife, Sarah, graduated from Tufts and Columbia Universities, has two children, and managed a $40 billion bond fund on Wall Street. He lives in a $2 million home in Westport, and had a beautiful summer house on an exclusive section on Cape Cod. John Howe is a doting father who is wasting little time spending money on a lavish wedding for his daughter in Cabo San Lucas, Mexico.
On the professional side, Mr. Howe is the majority owner and fund manager of numerous on- and off-shore private hedge funds including Old Hill Partners, Patriot Group, and other funds located in Darien, Connecticut. Life appears good and Mr. Howe lives it large.
But Mr. Howe's good life is about to change. That's because he and his private hedge funds are the target of IRS and SEC investigations for allegedly committing tax fraud and violating U.S. securities law.
Although details involving these investigations are sparse, they stem from a Boston whistleblower who reported Mr. Howe and his funds to the IRS and SEC for allegedly committing tax and securities fraud. In turn, the whistleblower has accused Mr. Howe of forcing the debtor into bankruptcy as a means to retaliate against the whistleblower.
A whistleblower advocacy group in Europe has also announced that a second whistleblower has come forward and will fill claims against Mr. Howe alleging that he and other partners siphoned client funds to his personal accounts, and overcharged management fees to his investors.
As one lawyer notes: "The optics in this case do not favor Mr. Howe- a private hedge fund manager. He may have committed tax fraud, violated securities law, and threatened and intimidated a debtor not to report him to the IRS and SEC. Then to top it off, there is a pending claim by a second whistleblower that Howe may have stolen client funds."
This is the second time Mr. Howe has been accused of stealing client funds.
The allegation that Howe stole client funds was previously made in an unrelated case several years ago. In that case, the New York Post reported that Mr. Howe had transferred investor funds into his personal accounts in violation of securities law.
The private hedge fund business is concentrated in southern Connecticut's Fairfield County, among a small, close-knit community. News of the pending fraud investigations into Howe and his funds has already become viral.
S. Joseph Schimini, a professor of investment management adds, "The key to attracting investors to a private hedge fund is your reputation. Once there is any inkling of impropriety, the investors run like rats. Take a look at Bernie Madoff, as a prime example."
As of two weeks ago, Howe's problems had appeared to be limited to tax fraud and securities violations. That changed with the recent public announcement that a possible second whistleblower filing was pending with allegations that Mr. Howe and others "siphoned" client funds, among other claims.
Schimini observes: "If Mr. Howe is charged with stealing client funds, all bets are off. Mr. Howe gets elevated quickly to being a mini-Madoff and we all know what happened to Bernie and his investors."
In the meantime, life in the little town of Westport is likely to get more interesting as another hedge fund executive prepares to fight for his lifestyle, reputation and perhaps, his freedom.
John C. Howe, Westport, Connecticut, USA, Old Hill Partners, Inc., Patriot Group LLC ,in Darien, Connecticut ,intimidates U. S. Web Sites to Remove Truthful and Damaging Articles Implicating Him in Tax and Securities Fraud.
Be Extremely careful not to invest in John C Howe private hedge fund ! Its a fraud under national and international investigation !
Whistleblowers International (WBI) is under attack by alleged tax cheat John C. Howe and Old Hill Partners for WBI's reporting about ongoing investigations into Mr. Howe's alleged tax fraud and securities law violations, including the siphoning of private investor funds for Mr. Howe's personal benefit. Mr. Howe is a resident of Westport, Connecticut.
WBI asserts that Mr. Howe has taken actions to threaten and intimidate several U.S. media outlets, forcing them to remove WBI's blogs, press releases and other content pertaining to Mr. Howe's alleged frauds.
The background involved two separate and independent whistleblowers who have come forward against Mr. Howe, Old Hill Partners, and other individuals and entities affiliated with Mr. Howe.
WBI has previously reported on the first whistleblower, an American, who has accused Mr. Howe, Old Hill Partners and other entities of committing U.S. tax and securities fraud. The whistleblower filed claims with the IRS and SEC against Mr. Howe, Old Hill Partners and their related funds. That same whistleblower has also accused Mr. Howe of retaliating against him by forcing the whistleblower into bankruptcy and harassing and intimidating him and his family inside the U.S. Bankruptcy Court.
Recently, a second whistleblower contacted WBI and announced that he is preparing whistleblower filings against Mr. Howe, several former and present officers and employees of Mr. Howe's companies, and others. The second whistleblower alleges that Mr. Howe and his colleagues and affiliates committed U.S. tax fraud, siphoned investor funds for Mr. Howe's personal benefit, and overcharged those same investors exorbitant management fees.
On or about October 15, 2014, several e-media organizations contacted WBI and informed it that they were removing WBI's blogs and press releases from their web sites, based on threats they had received from Mr. Howe and his U.S. lawyers. Mr. Howe's lawyers, through agents, took actions to discredit WBI by informing the media organizations that WBI's press releases contained false and libelous statements about Mr. Howe and Old Hill Partners. One media outlet told WBI that Mr. Howe's lawyers and agents "threatened them with litigation if they did not immediate remove from their web site all WBI press releases referencing Mr. Howe and Old Hill Partners," regardless of whether they were true.
WBI also discovered that Mr. Howe's lawyers made similar threatening statements to the U.S. web company that hosts WBI's blogs and articles for WBI's U.S. clientele. Under threat of litigation, the U.S. web company temporarily shut down WBI's blog site causing a delay in service for WBI customers and bloggers.
WBI's Ann Shoutzer notes: "Mr. Howe's actions are illegal and clearly demonstrate his desperate desire to harass, intimidate and quiet the media for distributing the truth about his alleged fraudulent activities."
Says media consultant Eleanor Krautz, "Mr. Howe is using a classic technique of deflection that is used in political smear campaigns. Attack the messenger so that public will ignore the message."
Erik Nordenberg, a E.U. legal correspondent for WBI further states: "I am appalled that this type of censorship can occur in today's Internet within a free Western society. Mr. Howe has bullied one whistleblower in U.S. Bankruptcy Court. Now he thinks he can do the same to WBI."
"But Mr. Howe has another thing coming," says WBI's John Stratenberg.
WBI has take immediate action to move its U.S. blog to its operations outside of the United States. "The move allows us to continue to service our U.S. customers out of reach and attack by Howe and his attorneys," says Stratenberg.
Continues Stratenberg " We are also exploring possible legal action against Mr. Howe and his attorneys. Through his threats and intimidation, Mr. Howe has tortuously interfered with WBI's relationships with media outlets and damaged WBI's reputation."
WBI has reissued its recent blogs, press releases and articles to a larger volume of media outlets.
Old Hill Partners and John C. Howe Used Off-Shore Entities and Howe’s Family Members to “Siphon” Client Funds .
Investigators diclosed this week that Old Hill Partners Siphoned Investor Assets to John C. Howe Family Members .
This is a know fact now : Old Hill Partners from Darien ,cooperated with John C Howe in concealing assets from the IRS, SEC, Creditors and Investors.
We know that Old Hill Partners’ Investors Demand Money Back in Light of Frauds Perpetrated and Not Disclosed.
NO MONEY HAS BEEN REFUNDED YET .
Old Hill Partners and John C. Howe Hid Information From Investors about Ongoing Allegations of Tax and Securities Fraud and "Siphoning" Client Funds.
Old Hill Partners and John C. Howe Failed to Disclose Pending Fraud Investigations to New Investors .
And Now :
Investors, Lenders and Investigators Pile On in Light of Pending Claims of Tax and Securities Fraud and Theft of Client Funds.
Old Hill Partners’ Investors Demand Money Back in Light of Frauds Perpetrated and Not Disclo
An investigation into tax and securities fraud committed by John Howe's Connecticut private hedge funds should concern investors as they are exposed to loss of millions in additional taxes, interest and fines .
Leading financial newspapers are now preparing articles about Old Hill Partners and Executive John C. Howe’s Elaborate Plans to Defraud their Latest Investor Group .
Different websites are reporting in their Financial News section that OLD HILL PARTNERS CAUGHT IN THEIR PONZI SCHEME- and NEW INVESTORS DEFRAUDED .
Investor News asks where the other members of management were when Mr. Howe perpetrated his fraud shenanigans.
If you haven't heard yet, the tony southern Connecticut suburb of Westport, full of many well-to-do executives and hedge fund groupies, is about to have one of its own go down in flames. That person is John C. Howe, the majority owner of several hedge funds who, along with those funds, is under two investigations, one by the IRS for tax fraud, and the other by the SEC for securities law violations. There are other possible charges against Mr. Howe for theft of client funds, and overcharging management fees to investors.
Most of Mr. Howe's private equity funds are registered with the SEC.
This column has done some research into the status of the John Howe cases and to identify the parties who are part of this alleged fraud scheme.
This case received traction during a Boston bankruptcy filing by Howe's Patriot Group LLC and two other creditors against a debtor who owes Patriot more than $20 million.
During a deposition of the debtor, the debtor's attorney notified the creditors' attorney and the bankruptcy trustee that the debtor was an IRS and SEC whistleblower. The whistleblower had filed claims against both Howe and his various funds, alleging they had committed tax fraud and violations of securities law.
The debtor's attorney later notified the bankruptcy court of the whistleblower filing as part of a motion pleading. The details of the case and the types of alleged tax fraud have not been disclosed nor have copies of the actual whistleblower filings been made available to the courts. This column can only assume that the fraud allegations may involve all of Mr. Howe's funds along with John Howe and other officers, individually. Whistleblowers International (WBI), a watchdog group in Europe, has also done research and written several articles on this case.
As Sean Richards, an investment advisor observes, "Once a company is charged with tax fraud or securities law violations, it spreads like wildfire, implicating all of its members, officers, and affiliated entities." If Richards is correct, John Howe and his partners have plenty to worry about.
According to records files with the SEC, Mr. Howe's entities provide a web of convoluted transitions including significant funds located in off-shore tax havens such as Grand Cayman and Bermuda, both the recent targets of IRS and Congressional investigations.
One of Mr. Howe's funds that was involved in the bankruptcy litigation and was named by the debtor in the alleged tax fraud is Patriot Group, LLC, located in Darien, Connecticut. Based on the most recently filed SEC records, Patriot Group's members consist of John Christopher Howe, Robert Alan Deutsch, Jonathan Thomas Kane, Judith Tucker, and John Field.
Old Hill Partners identifies Mr. Howe as its present and major investor, and Jeffrey M. Haas as its chief operating officer.
According to SEC files, Patriot was delisted from the SEC and was succeeded by Old Hill Partners Inc, in April 2013, right before engaging in the forced bankruptcy filing against the debtor. According to Sean Richards, "The delisting of Patriot Group right before a major event is suspicious and may indicate that Patriot was concerned about the legal implications from the anticipated whistleblower's filing. I have seen cases where a perpetrator delists to reduce SEC focus on a sensitive matter, such as securities law violations."
Sean Richards continues: "By delisting and having a successor entity (Old Hill Partners, in this example), Patriot Group's previous alleged fraud and SEC violations do not go away."
Other than Patriot Group, Howe's funds consist of a series of U.S., Grand Cayman and Bermuda funds, all linked by common owners, investors, officers and, Howe, himself. There is the Washington Special Opportunity Fund, Inc., a Cayman Island corporation, the Washington Special Opportunity, LLC, a Delaware limited liability company, PFM Credit Recovery I, LLC and a Delaware limited liability company, and another off-shore Bermuda fund, the OHP Opportunity Limited Trust. There are other funds that are not identified in this column which the reader can find through the SEC's web site as www.SEC.gov.
Investors ALERT - PONZI SCHEME of Old Hill Partners from Darien . Please Note : “OLD HILL PARTNERS BANKRUPTCY IS IMMINENT” Investors, Lenders and Investigators Pile On in Light of Pending Claims of Tax and Securities Fraud and Theft of Client Funds Fraud Alert is updating its readers about the ongoing implosion of Connecticut-based Old Hill Partners Inc. and its principal John C. Howe. Old Hill Partners Inc. is a private hedge fund located in Darien Connecticut while John C. Howe lives in Westport, Connecticut. This Editor has learned that Old Hill Partners and Mr. Howe have consulted with two New York law firms about making a bankruptcy filing to ward off recent attacks, investigations and legal challenges by creditors and investors. Fraud Alert’s Editor Jacob Reinstein notes, “Our sources have told us that it is just a matter of time before Old Hill Partners and Mr. Howe, individually, file for bankruptcy protection. The pressure is simply too insurmountable.” Old Hill Partners, John C. Howe and their various private hedge funds are under investigation for tax and securities fraud based on a whistleblower filing made by a Boston man.
There are additional charges forthcoming based on filings about to be made by a second whistleblower who accuses Old Hill Partners, John C. Howe and others of engaging in a conspiracy to defraud their private investors by “siphoning” client funds through use of off-shore entities. Some of those funds were diverted to Mr. Howe’s wife and daughter, Jacqueline Howe, both of Westport, Connecticut. The activities of Old Hill and Mr. Howe became noteworthy when, in the summer of 2014, several media organizations carried the whistleblower’s fraud allegations in a series of on-line articles published by Fox News, Whistleblowers International (WBI), Investors News, and this Fraud Alert, among others. As Mr. Reinstein observes “ Now that the Old Hill Partners and John Howe fraud cases are out in the public, its private investors know about it and are demanding answers. So does Old Hill’s lenders.” Continues Reinstein, “Of course, those answers are rather ugly.
If truthfully told, Old Hill and Mr. Howe would admit that they have defrauded investors out of millions and there was no way to pay it back. It is that simple.” What is exacerbating the pressure is that several lenders are demanding that Old Hill and two specific funds repay lines of credit that are outstanding. Says John Bune, an E.U. legal advisor, “The fact that Old Hill and Mr. Howe are under ongoing fraud investigations may trigger loan violations making the debt callable upon demand.” For investors in the Old Hill Partner funds, a bankruptcy filing could be ominous. Says Bune, “In bankruptcy, the lenders get paid first, and the investors get paid last. That is the fundamental problem with private hedge funds. Yes, there are high returns when times are good. But when they turn sour such as in the Old Hill case, the investors get screwed.”
What is to happen to John Howe, Old Hill Partner’s key principal? According to one attorney close to the transaction, John Howe is likely to be forced into personal bankruptcy if Old Hill Partners seeks bankruptcy protection. Says Reinstein “Investors and lenders will surely sue John Howe for committing fraud. The numbers will be astronomical. Mr. Howe’s only hope is to file bankruptcy and hope he can somehow survive. Says Reinstein “We now know that Old Hill Partners and Howe may both file bankruptcy.
Investor News is reporting on the ongoing fraud investigation of Old Hill Partners, an investor group involving several private hedge funds located in Darien Connecticut. Its principal is John C. Howe of Westport, Connecticut. According to information supplied by Fraud Report to Investor News, a whistleblower has supplied further evidence that implicates Old Hill Partners and its principal John C. Howe in an elaborate Ponzi scheme. This is the second whistleblower to come forward against Old Hill and Mr. Howe. The whistleblower, a former associate in Old Hill, contacted a European watchdog group in October 2014 with evidence that Old Hill Partners, John C. Howe, and others acted in concert to “siphon” client funds for Mr. Howe’s personal benefit. As part of an interview, the whistleblower supplied Fraud Report with documents supporting his allegations that Old Hill Partners not only stole client funds but also used off-shore entities to commit tax fraud. This past week, Fraud Report reviewed additional documentation that expands Old Hill’s fraudulent activities to a scheme that used new investor funds to repay old investor obligations. That scheme is commonly known as a “Ponzi scheme” named after an infamous fraud conducted by Charles Ponzi in the 1920s. Jacob Reinstein, Fraud Report’s Editor, who has followed several recent high-profile fraud investigations, notes, “Preliminarily, the evidence points to Old Hill raising new investment funds in 2014 under its Asset Income Fund, and using those funds to pay investment returns for a previous group of investors.” Investor News has learned that Old Hill solicited additional private capital as part of an investment fund that was created in early 2014. Instead of those funds being used to acquire new investment assets, Old Hill distributed a large portion to existing investors demanding a return on their previous investment. Continues Reinstein, “Old Hill is conducting a classic Ponzi scheme. Take money from new investors to placate old investors.” According to one investment advisor, “The scheme works perfectly as long as Old Hill continues to raise new funds to satisfy old investors. Once the new funds dry up, the music stops and some investors are missing chairs.” Old Hill Partners involvement in a Ponzi scheme is hardly the first private hedge fund group to steal client funds using Charles Ponzi’s technique. Says Reinstein, “Bernie Madoff, Mark Drier, and others all used the Ponzi approach to commit their frauds. As long as you keep raising new money to pay for old obligations, you do not get caught.” Of course, history shows that the scheme cannot continue indefinitely. The availability of new money dries up at some point in time. That’s when the old investors demand payments and there is no new funds to make those payments. What has yet to be determined is where the old funds went. According to Fraud Report, the whistleblower has evidence that old investor funds were paid through Old Hill Partners and family members for the personal benefit of Mr. Howe and others. Those funds were supposed to be used to make investments for the benefit of investors, not for Mr. Howe’s personal use.” Says Fraud Report’s Jacob Reinstein. Continues Reinstein “The funds were used to subsidize Mr. Howe’s elaborate Westport lifestyle, just like Bernie Madoff stole funds to benefit his wife Ruth and two sons.” Old Hill Partners 1120 Boston Post Road, 2nd Floor Darien, Connecticut 06820 (203) 656 3004 (203) 656 3008 (Fax) General Informattion [email protected] Old Hill Partners,Collateralized Loan,Direct Loans Darien
Old Hill Partners and John C. Howe Used Off-Shore Entities and Howe’s Family Members to “Siphon” Client Funds .
Investigators diclosed this week that Old Hill Partners Siphoned Investor Assets to John C. Howe Family Members .
This is a know fact now : Old Hill Partners from Darien ,cooperated with John C Howe in concealing assets from the IRS, SEC, Creditors and Investors.
We know that Old Hill Partners’ Investors Demand Money Back in Light of Frauds Perpetrated and Not Disclosed.
NO MONEY HAS BEEN REFUNDED YET .
Old Hill Partners and John C. Howe Hid Information From Investors about Ongoing Allegations of Tax and Securities Fraud and "Siphoning" Client Funds.
Old Hill Partners and John C. Howe Failed to Disclose Pending Fraud Investigations to New Investors .
And Now :
Investors, Lenders and Investigators Pile On in Light of Pending Claims of Tax and Securities Fraud and Theft of Client Funds.
Old Hill Partners’ Investors Demand Money Back in Light of Frauds Perpetrated and Not Disclosed
An investigation into tax and securities fraud committed by John Howe's Connecticut private hedge funds should concern investors as they are exposed to loss of millions in additional taxes, interest and fines .
Leading financial newspapers are now preparing articles about Old Hill Partners and Executive John C. Howe’s Elaborate Plans to Defraud their Latest Investor Group .
Different websites are reporting in their Financial News section that OLD HILL PARTNERS CAUGHT IN THEIR PONZI SCHEME- and NEW INVESTORS DEFRAUDED .
Old Hill Partners Reviews
Old Hill Partners and Its Private Hedge Funds Allegedly Defrauded Investors
Westport Hedge Fund Manager John Howe Accused of Tax Fraud, SEC Violations and Siphoning Client Funds
On the surface, Westport, Connecticut's John Christopher Howe appears to have it all and to come from the right pedigree. He went to the elite Middlesex prep school of Concord, Massachusetts where he met his wife, Sarah, graduated from Tufts and Columbia Universities, has two children, and managed a $40 billion bond fund on Wall Street. He lives in a $2 million home in Westport, and had a beautiful summer house on an exclusive section on Cape Cod. John Howe is a doting father who is wasting little time spending money on a lavish wedding for his daughter in Cabo San Lucas, Mexico.
On the professional side, Mr. Howe is the majority owner and fund manager of numerous on- and off-shore private hedge funds including Old Hill Partners, Patriot Group, and other funds located in Darien, Connecticut. Life appears good and Mr. Howe lives it large.
But Mr. Howe's good life is about to change. That's because he and his private hedge funds are the target of IRS and SEC investigations for allegedly committing tax fraud and violating U.S. securities law.
Although details involving these investigations are sparse, they stem from a Boston whistleblower who reported Mr. Howe and his funds to the IRS and SEC for allegedly committing tax and securities fraud. In turn, the whistleblower has accused Mr. Howe of forcing the debtor into bankruptcy as a means to retaliate against the whistleblower.
A whistleblower advocacy group in Europe has also announced that a second whistleblower has come forward and will fill claims against Mr. Howe alleging that he and other partners siphoned client funds to his personal accounts, and overcharged management fees to his investors.
As one lawyer notes: "The optics in this case do not favor Mr. Howe- a private hedge fund manager. He may have committed tax fraud, violated securities law, and threatened and intimidated a debtor not to report him to the IRS and SEC. Then to top it off, there is a pending claim by a second whistleblower that Howe may have stolen client funds."
This is the second time Mr. Howe has been accused of stealing client funds.
The allegation that Howe stole client funds was previously made in an unrelated case several years ago. In that case, the New York Post reported that Mr. Howe had transferred investor funds into his personal accounts in violation of securities law.
The private hedge fund business is concentrated in southern Connecticut's Fairfield County, among a small, close-knit community. News of the pending fraud investigations into Howe and his funds has already become viral.
S. Joseph Schimini, a professor of investment management adds, "The key to attracting investors to a private hedge fund is your reputation. Once there is any inkling of impropriety, the investors run like rats. Take a look at Bernie Madoff, as a prime example."
As of two weeks ago, Howe's problems had appeared to be limited to tax fraud and securities violations. That changed with the recent public announcement that a possible second whistleblower filing was pending with allegations that Mr. Howe and others "siphoned" client funds, among other claims.
Schimini observes: "If Mr. Howe is charged with stealing client funds, all bets are off. Mr. Howe gets elevated quickly to being a mini-Madoff and we all know what happened to Bernie and his investors."
In the meantime, life in the little town of Westport is likely to get more interesting as another hedge fund executive prepares to fight for his lifestyle, reputation and perhaps, his freedom.
John C. Howe, Westport, Connecticut, USA, Old Hill Partners, Inc., Patriot Group LLC ,in Darien, Connecticut ,intimidates U. S. Web Sites to Remove Truthful and Damaging Articles Implicating Him in Tax and Securities Fraud.
Be Extremely careful not to invest in John C Howe private hedge fund ! Its a fraud under national and international investigation !
Whistleblowers International (WBI) is under attack by alleged tax cheat John C. Howe and Old Hill Partners for WBI's reporting about ongoing investigations into Mr. Howe's alleged tax fraud and securities law violations, including the siphoning of private investor funds for Mr. Howe's personal benefit. Mr. Howe is a resident of Westport, Connecticut.
WBI asserts that Mr. Howe has taken actions to threaten and intimidate several U.S. media outlets, forcing them to remove WBI's blogs, press releases and other content pertaining to Mr. Howe's alleged frauds.
The background involved two separate and independent whistleblowers who have come forward against Mr. Howe, Old Hill Partners, and other individuals and entities affiliated with Mr. Howe.
WBI has previously reported on the first whistleblower, an American, who has accused Mr. Howe, Old Hill Partners and other entities of committing U.S. tax and securities fraud. The whistleblower filed claims with the IRS and SEC against Mr. Howe, Old Hill Partners and their related funds. That same whistleblower has also accused Mr. Howe of retaliating against him by forcing the whistleblower into bankruptcy and harassing and intimidating him and his family inside the U.S. Bankruptcy Court.
Recently, a second whistleblower contacted WBI and announced that he is preparing whistleblower filings against Mr. Howe, several former and present officers and employees of Mr. Howe's companies, and others. The second whistleblower alleges that Mr. Howe and his colleagues and affiliates committed U.S. tax fraud, siphoned investor funds for Mr. Howe's personal benefit, and overcharged those same investors exorbitant management fees.
On or about October 15, 2014, several e-media organizations contacted WBI and informed it that they were removing WBI's blogs and press releases from their web sites, based on threats they had received from Mr. Howe and his U.S. lawyers. Mr. Howe's lawyers, through agents, took actions to discredit WBI by informing the media organizations that WBI's press releases contained false and libelous statements about Mr. Howe and Old Hill Partners. One media outlet told WBI that Mr. Howe's lawyers and agents "threatened them with litigation if they did not immediate remove from their web site all WBI press releases referencing Mr. Howe and Old Hill Partners," regardless of whether they were true.
WBI also discovered that Mr. Howe's lawyers made similar threatening statements to the U.S. web company that hosts WBI's blogs and articles for WBI's U.S. clientele. Under threat of litigation, the U.S. web company temporarily shut down WBI's blog site causing a delay in service for WBI customers and bloggers.
WBI's Ann Shoutzer notes: "Mr. Howe's actions are illegal and clearly demonstrate his desperate desire to harass, intimidate and quiet the media for distributing the truth about his alleged fraudulent activities."
Says media consultant Eleanor Krautz, "Mr. Howe is using a classic technique of deflection that is used in political smear campaigns. Attack the messenger so that public will ignore the message."
Erik Nordenberg, a E.U. legal correspondent for WBI further states: "I am appalled that this type of censorship can occur in today's Internet within a free Western society. Mr. Howe has bullied one whistleblower in U.S. Bankruptcy Court. Now he thinks he can do the same to WBI."
"But Mr. Howe has another thing coming," says WBI's John Stratenberg.
WBI has take immediate action to move its U.S. blog to its operations outside of the United States. "The move allows us to continue to service our U.S. customers out of reach and attack by Howe and his attorneys," says Stratenberg.
Continues Stratenberg " We are also exploring possible legal action against Mr. Howe and his attorneys. Through his threats and intimidation, Mr. Howe has tortuously interfered with WBI's relationships with media outlets and damaged WBI's reputation."
WBI has reissued its recent blogs, press releases and articles to a larger volume of media outlets.
Old Hill Partners and John C. Howe Used Off-Shore Entities and Howe’s Family Members to “Siphon” Client Funds .
Investigators diclosed this week that Old Hill Partners Siphoned Investor Assets to John C. Howe Family Members .
This is a know fact now : Old Hill Partners from Darien ,cooperated with John C Howe in concealing assets from the IRS, SEC, Creditors and Investors.
We know that Old Hill Partners’ Investors Demand Money Back in Light of Frauds Perpetrated and Not Disclosed.
NO MONEY HAS BEEN REFUNDED YET .
Old Hill Partners and John C. Howe Hid Information From Investors about Ongoing Allegations of Tax and Securities Fraud and "Siphoning" Client Funds.
Old Hill Partners and John C. Howe Failed to Disclose Pending Fraud Investigations to New Investors .
And Now :
Investors, Lenders and Investigators Pile On in Light of Pending Claims of Tax and Securities Fraud and Theft of Client Funds.
Old Hill Partners’ Investors Demand Money Back in Light of Frauds Perpetrated and Not Disclo
An investigation into tax and securities fraud committed by John Howe's Connecticut private hedge funds should concern investors as they are exposed to loss of millions in additional taxes, interest and fines .
Leading financial newspapers are now preparing articles about Old Hill Partners and Executive John C. Howe’s Elaborate Plans to Defraud their Latest Investor Group .
Different websites are reporting in their Financial News section that OLD HILL PARTNERS CAUGHT IN THEIR PONZI SCHEME- and NEW INVESTORS DEFRAUDED .
Investor News asks where the other members of management were when Mr. Howe perpetrated his fraud shenanigans.
If you haven't heard yet, the tony southern Connecticut suburb of Westport, full of many well-to-do executives and hedge fund groupies, is about to have one of its own go down in flames. That person is John C. Howe, the majority owner of several hedge funds who, along with those funds, is under two investigations, one by the IRS for tax fraud, and the other by the SEC for securities law violations. There are other possible charges against Mr. Howe for theft of client funds, and overcharging management fees to investors.
Most of Mr. Howe's private equity funds are registered with the SEC.
This column has done some research into the status of the John Howe cases and to identify the parties who are part of this alleged fraud scheme.
This case received traction during a Boston bankruptcy filing by Howe's Patriot Group LLC and two other creditors against a debtor who owes Patriot more than $20 million.
During a deposition of the debtor, the debtor's attorney notified the creditors' attorney and the bankruptcy trustee that the debtor was an IRS and SEC whistleblower. The whistleblower had filed claims against both Howe and his various funds, alleging they had committed tax fraud and violations of securities law.
The debtor's attorney later notified the bankruptcy court of the whistleblower filing as part of a motion pleading. The details of the case and the types of alleged tax fraud have not been disclosed nor have copies of the actual whistleblower filings been made available to the courts. This column can only assume that the fraud allegations may involve all of Mr. Howe's funds along with John Howe and other officers, individually. Whistleblowers International (WBI), a watchdog group in Europe, has also done research and written several articles on this case.
As Sean Richards, an investment advisor observes, "Once a company is charged with tax fraud or securities law violations, it spreads like wildfire, implicating all of its members, officers, and affiliated entities." If Richards is correct, John Howe and his partners have plenty to worry about.
According to records files with the SEC, Mr. Howe's entities provide a web of convoluted transitions including significant funds located in off-shore tax havens such as Grand Cayman and Bermuda, both the recent targets of IRS and Congressional investigations.
One of Mr. Howe's funds that was involved in the bankruptcy litigation and was named by the debtor in the alleged tax fraud is Patriot Group, LLC, located in Darien, Connecticut. Based on the most recently filed SEC records, Patriot Group's members consist of John Christopher Howe, Robert Alan Deutsch, Jonathan Thomas Kane, Judith Tucker, and John Field.
Old Hill Partners identifies Mr. Howe as its present and major investor, and Jeffrey M. Haas as its chief operating officer.
According to SEC files, Patriot was delisted from the SEC and was succeeded by Old Hill Partners Inc, in April 2013, right before engaging in the forced bankruptcy filing against the debtor. According to Sean Richards, "The delisting of Patriot Group right before a major event is suspicious and may indicate that Patriot was concerned about the legal implications from the anticipated whistleblower's filing. I have seen cases where a perpetrator delists to reduce SEC focus on a sensitive matter, such as securities law violations."
Sean Richards continues: "By delisting and having a successor entity (Old Hill Partners, in this example), Patriot Group's previous alleged fraud and SEC violations do not go away."
Other than Patriot Group, Howe's funds consist of a series of U.S., Grand Cayman and Bermuda funds, all linked by common owners, investors, officers and, Howe, himself. There is the Washington Special Opportunity Fund, Inc., a Cayman Island corporation, the Washington Special Opportunity, LLC, a Delaware limited liability company, PFM Credit Recovery I, LLC and a Delaware limited liability company, and another off-shore Bermuda fund, the OHP Opportunity Limited Trust. There are other funds that are not identified in this column which the reader can find through the SEC's web site as www.SEC.gov.
Investors ALERT - PONZI SCHEME of Old Hill Partners from Darien . Please Note : “OLD HILL PARTNERS BANKRUPTCY IS IMMINENT” Investors, Lenders and Investigators Pile On in Light of Pending Claims of Tax and Securities Fraud and Theft of Client Funds Fraud Alert is updating its readers about the ongoing implosion of Connecticut-based Old Hill Partners Inc. and its principal John C. Howe. Old Hill Partners Inc. is a private hedge fund located in Darien Connecticut while John C. Howe lives in Westport, Connecticut. This Editor has learned that Old Hill Partners and Mr. Howe have consulted with two New York law firms about making a bankruptcy filing to ward off recent attacks, investigations and legal challenges by creditors and investors. Fraud Alert’s Editor Jacob Reinstein notes, “Our sources have told us that it is just a matter of time before Old Hill Partners and Mr. Howe, individually, file for bankruptcy protection. The pressure is simply too insurmountable.” Old Hill Partners, John C. Howe and their various private hedge funds are under investigation for tax and securities fraud based on a whistleblower filing made by a Boston man.
There are additional charges forthcoming based on filings about to be made by a second whistleblower who accuses Old Hill Partners, John C. Howe and others of engaging in a conspiracy to defraud their private investors by “siphoning” client funds through use of off-shore entities. Some of those funds were diverted to Mr. Howe’s wife and daughter, Jacqueline Howe, both of Westport, Connecticut. The activities of Old Hill and Mr. Howe became noteworthy when, in the summer of 2014, several media organizations carried the whistleblower’s fraud allegations in a series of on-line articles published by Fox News, Whistleblowers International (WBI), Investors News, and this Fraud Alert, among others. As Mr. Reinstein observes “ Now that the Old Hill Partners and John Howe fraud cases are out in the public, its private investors know about it and are demanding answers. So does Old Hill’s lenders.” Continues Reinstein, “Of course, those answers are rather ugly.
If truthfully told, Old Hill and Mr. Howe would admit that they have defrauded investors out of millions and there was no way to pay it back. It is that simple.” What is exacerbating the pressure is that several lenders are demanding that Old Hill and two specific funds repay lines of credit that are outstanding. Says John Bune, an E.U. legal advisor, “The fact that Old Hill and Mr. Howe are under ongoing fraud investigations may trigger loan violations making the debt callable upon demand.” For investors in the Old Hill Partner funds, a bankruptcy filing could be ominous. Says Bune, “In bankruptcy, the lenders get paid first, and the investors get paid last. That is the fundamental problem with private hedge funds. Yes, there are high returns when times are good. But when they turn sour such as in the Old Hill case, the investors get screwed.”
What is to happen to John Howe, Old Hill Partner’s key principal? According to one attorney close to the transaction, John Howe is likely to be forced into personal bankruptcy if Old Hill Partners seeks bankruptcy protection. Says Reinstein “Investors and lenders will surely sue John Howe for committing fraud. The numbers will be astronomical. Mr. Howe’s only hope is to file bankruptcy and hope he can somehow survive. Says Reinstein “We now know that Old Hill Partners and Howe may both file bankruptcy.
Investor News is reporting on the ongoing fraud investigation of Old Hill Partners, an investor group involving several private hedge funds located in Darien Connecticut. Its principal is John C. Howe of Westport, Connecticut. According to information supplied by Fraud Report to Investor News, a whistleblower has supplied further evidence that implicates Old Hill Partners and its principal John C. Howe in an elaborate Ponzi scheme. This is the second whistleblower to come forward against Old Hill and Mr. Howe. The whistleblower, a former associate in Old Hill, contacted a European watchdog group in October 2014 with evidence that Old Hill Partners, John C. Howe, and others acted in concert to “siphon” client funds for Mr. Howe’s personal benefit. As part of an interview, the whistleblower supplied Fraud Report with documents supporting his allegations that Old Hill Partners not only stole client funds but also used off-shore entities to commit tax fraud. This past week, Fraud Report reviewed additional documentation that expands Old Hill’s fraudulent activities to a scheme that used new investor funds to repay old investor obligations. That scheme is commonly known as a “Ponzi scheme” named after an infamous fraud conducted by Charles Ponzi in the 1920s. Jacob Reinstein, Fraud Report’s Editor, who has followed several recent high-profile fraud investigations, notes, “Preliminarily, the evidence points to Old Hill raising new investment funds in 2014 under its Asset Income Fund, and using those funds to pay investment returns for a previous group of investors.” Investor News has learned that Old Hill solicited additional private capital as part of an investment fund that was created in early 2014. Instead of those funds being used to acquire new investment assets, Old Hill distributed a large portion to existing investors demanding a return on their previous investment. Continues Reinstein, “Old Hill is conducting a classic Ponzi scheme. Take money from new investors to placate old investors.” According to one investment advisor, “The scheme works perfectly as long as Old Hill continues to raise new funds to satisfy old investors. Once the new funds dry up, the music stops and some investors are missing chairs.” Old Hill Partners involvement in a Ponzi scheme is hardly the first private hedge fund group to steal client funds using Charles Ponzi’s technique. Says Reinstein, “Bernie Madoff, Mark Drier, and others all used the Ponzi approach to commit their frauds. As long as you keep raising new money to pay for old obligations, you do not get caught.” Of course, history shows that the scheme cannot continue indefinitely. The availability of new money dries up at some point in time. That’s when the old investors demand payments and there is no new funds to make those payments. What has yet to be determined is where the old funds went. According to Fraud Report, the whistleblower has evidence that old investor funds were paid through Old Hill Partners and family members for the personal benefit of Mr. Howe and others. Those funds were supposed to be used to make investments for the benefit of investors, not for Mr. Howe’s personal use.” Says Fraud Report’s Jacob Reinstein. Continues Reinstein “The funds were used to subsidize Mr. Howe’s elaborate Westport lifestyle, just like Bernie Madoff stole funds to benefit his wife Ruth and two sons.” Old Hill Partners 1120 Boston Post Road, 2nd Floor Darien, Connecticut 06820 (203) 656 3004 (203) 656 3008 (Fax) General Informattion [email protected] Old Hill Partners,Collateralized Loan,Direct Loans Darien
Old Hill Partners and John C. Howe Used Off-Shore Entities and Howe’s Family Members to “Siphon” Client Funds .
Investigators diclosed this week that Old Hill Partners Siphoned Investor Assets to John C. Howe Family Members .
This is a know fact now : Old Hill Partners from Darien ,cooperated with John C Howe in concealing assets from the IRS, SEC, Creditors and Investors.
We know that Old Hill Partners’ Investors Demand Money Back in Light of Frauds Perpetrated and Not Disclosed.
NO MONEY HAS BEEN REFUNDED YET .
Old Hill Partners and John C. Howe Hid Information From Investors about Ongoing Allegations of Tax and Securities Fraud and "Siphoning" Client Funds.
Old Hill Partners and John C. Howe Failed to Disclose Pending Fraud Investigations to New Investors .
And Now :
Investors, Lenders and Investigators Pile On in Light of Pending Claims of Tax and Securities Fraud and Theft of Client Funds.
Old Hill Partners’ Investors Demand Money Back in Light of Frauds Perpetrated and Not Disclosed
An investigation into tax and securities fraud committed by John Howe's Connecticut private hedge funds should concern investors as they are exposed to loss of millions in additional taxes, interest and fines .
Leading financial newspapers are now preparing articles about Old Hill Partners and Executive John C. Howe’s Elaborate Plans to Defraud their Latest Investor Group .
Different websites are reporting in their Financial News section that OLD HILL PARTNERS CAUGHT IN THEIR PONZI SCHEME- and NEW INVESTORS DEFRAUDED .