As Pacific Alternative Asset Management
Company’s holding firm, PAAMCO Founders, prepares
the 40% equity certificate that will give Franklin Realty and
Franklin Realty Holdings a 40% share of PAAMCO Founders, the
founders themselves – Jane Buchan, James Berens,
Judith Posnikoff and William Knight – have just found
themselves the subject of a formal investigation by the
Securities and Exchange Commission.
This is the latest repercussion of Judge Richard
Sullivan’s ruling in August, where he gave an
opinion that their ownership structure was designed to mislead.
"Founders strongly disagrees with the judge’s
observation that its relationship with Donald Sussman may have
been structured to mislead anyone," said PAAMCO Founders in a
statement. Ahead of this latest development,
PAAMCO’s founders were in the throes of
considering their options. Fight the judge’s
ruling, or knuckle down and get on with business?
Under the terms of the final judgment...