GREENWICH — A Greenwich financial executive and investor is facing legal scrutiny by the New York attorney general over the handling of funds in accounts.
New York Attorney General Letitia James has obtained an injunction placing restrictions on private equity fund ACP X, run by Greenwich resident Laurence G. Allen, and the various corporate entities he controls. The attorney general’s office said it is investigating the fund and whether more than $13 million was misappropriated to enrich Allen and his companies between 2008 and 2018, according to a statement from James.
Allen’s investment company, based over the border from Greenwich in Rye Brook, N.Y., purchases interests in other private equity funds at a discount on the secondary market. According to the complaint from the attorney general, when one of Allen’s companies, NYPPEX Holdings, started to fail, “Allen allegedly funneled ACP investor money into NYPPEX, and in turn, into his own pocket,” according to the lawsuit.
A state Supreme Court justice in Manhattan held a hearing on the matter in early 2020 and approved the injunction on Allen’s companies, declaring that there appeared to be evidence of a “shocking level of self-dealing, breaches of fiduciary duty, misappropriation of enormous sums of ACP capital, and outright fraud.”
“Make no mistake: There is no safe haven for white collar fraudsters in New York,” said Attorney General James in announcing the lawsuit against Allen’s companies. “My office will find and prosecute all who try to illegally profit from illicit activities and line their pockets with stolen funds.”
A trial date has not been scheduled on the lawsuit, which is a civil matter, not a criminal one.
Allen declined comment by email last week. Attorneys with his firm did not respond to requests for comment.
Allen and his wife, Michelle, founded a nonprofit research project, the Allen Research Endowment, to look at the ways in which drug addiction can be treated. His son, J. Bradley Allen, died of a drug overdose in 2014 at the age of 19. The Allen Research Endowment has also supported research on life-threatening diseases.
The Allens filed a lawsuit against the makers of Suboxone in early 2017 that was dismissed in late 2018 on procedural grounds.
The lawsuit against Indivior Inc. was filed in U.S. District Court in the northern district of New York, located in Syracuse. A judge there ruled the lawsuit was not in the proper venue, and said it should have been filed in Connecticut.
Bradley Allen was a college student who began taking painkillers after a car accident in 2010, and he became addicted. Allen was prescribed Suboxone, a common treatment protocol for opioid addiction. When the Suboxone prescription ran out, according to court papers, Allen acquired heroin and died of an overdose.
At the time of the dismissal, Laurence Allen declined comment.
rmarchant@greenwichtime.com
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