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...