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...