Manager of Rye Brook equity fund used investors' money as personal piggy bank: AG

The attorney general's office sued the head of a private Rye Brook equity fund for using investors' money as his own private piggy bank for a decade. 

Laurence G. Allen, who manages ACP X, LP (ACP), defrauded investors and misappropriated more than $13 million to enrich himself and his companies between 2008 and 2018, the AG's office said. 

The private equity fund was started in 2004 and purchased interests in other private equity funds at a discount on the secondary market. 

When one of his companies — NYPPEX Holdings, LLC — started to fail, Allen allegedly funneled ACP investor money into NYPPEX, and in turn, into his own pocket, according to the lawsuit. 

"The investments in NYPPEX were not only contrary to the terms of the ACP private placement memorandum and partnership agreement, but were made with almost no prospect of ever earning a return," the attorney general's office said. "NYPPEX continued to lose money and has only stayed afloat as result of repeated and consistent cash infusions from ACP."

Laurence is also allegedly involved in several other schemes to improperly divert investor funds from ACP. 

“Make no mistake: There is no safe haven for white collar fraudsters in New York,” Attorney General Letitia James said in a statement. “My office will find and prosecute all who try to illegally profit from illicit activities and line their pockets with stolen funds. This lawsuit highlights the greed and hubris a single individual presented by allegedly using other people’s savings as his personal piggy bank and as a tool to prop up his failing businesses."

Twitter: @ChrisEberhart2