Mr Percy Walker (a.k.a the Greensboro billionaire, net worth $6.8bn) has been in touch over the latest entry on his infamous blog. This is the blog that so perplexed Forbes that they wrote to Mr Walker, requesting confirmation of his net worth. In the latest twist in Mr Walker’s torrid existence, a reader of his blog appears to have fallen foul of the authorities. Evan Andersen, a principal of Lydia Capital, is being sued by regulators who allege that he and fellow principal, Glenn Manterfield, misled investors about the risks of a $33m scheme involving life insurance policies, reports the Boston Globe.
The claim is that Boston-based Lydia Capital sold shares in a hedge fund to clients without disclosing that their investment process could eventually render their hedge fund’s assets “either worthless or virtually worthless,” the story says.
“Lydia Capital also falsely claimed it had offices in Singapore and Mexico, and that it had investors in South America who didn’t exist,” it adds.
Oh dear. Both principals, through their lawyers, declined to comment on the Globe’s story. But back in February, a comment was posted to Mr Walker’s blog signed off Evan Andersen, Lydia Capital. In it, Mr Andersen argues in favour of regulation of hedge funds:
“I have always taken the view that hedge funds need scrutiny and regulation. It is to the benefit of the consumer that there is full disclosure along the way,” he wrote, before going on to argue that the moniker “hedge fund” is misleading and should be ditched in favour of investment fund.
Mr Walker, of course, was more sceptical of the benefits of regulation and scrutiny. “Let this be a lesson to all of you out there. Sucking up to regulators will get you nowhere,” he now thunders.
[Disclaimer - yes, we know the dashing handsome chap pictured on Mr Walker’s site may not in fact provide a close likeness of the great man. Please don’t email.]
