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Soros faces $20m legal claim from former manager
by Danielle Levy on Jul 14, 2014 at 07:50
Renowned investor George Soros (pictured) is being sued by a former employee, who is claiming more than $20 million (£11.7 million) in fees and wages after an eight-month stint at Soros Fund Management.
Aaron Cowen, a former hedge fund manager at SAC Capital, has filed a complaint in New York’s Supreme Court against Soros Fund Management (SFM), according to the Telegraph.
He is reported to have lodged a claim demanding $19.5 million in unpaid 'wages, bonuses, wage supplements, and compensation bargained for, earned and belonging [to him]'. He has also seeking 'at least $3 million', which he claims was lost as a result of Soros’ firm liquidating his portfolio when he left, the Telegraph reported.
According to the filing, Cowen said he started at Soros Fund Management with a basic salary of $500,000 per year, with the ability to earn performance fees from his fund of 12.5%. He was given $500 million to run from the start and claims he wa promised this would rise to $1 billion within months.
He claims he was successful during his time at the firm, generating returns while others in the group struggled and received praise from Soros himself at a gathering at the Hamptons. However a week later, the filing noted that deputy chairman Jonathan Soros notified Cowen that his employment at SFM was terminated with no reason provided. He was handed with a termination letter and a $250,000 separation payment.
Cowen said he was not allowed to liquidate his own fund and SFM chose to do this for him instead, selling stocks at a point that he claims was not advantageous to do so. He claims the process was 'illegal' and 'fraudulent'.”
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