Private Equity Real Estate Investment Fund Embezzlement – United Kingdom

November 14, 2022

A major private equity firm with a fund that included numerous parcels of commercial real estate in its investment portfolio was defrauded by its fund manager. The manager was charged with the operations and maintenance of the various properties including the receipt of rent, improvements, tax payments and maintenance. The employee mischaracterized several million dollars of personal expenses as business expenses instead using company funds to pay for his lavish lifestyle that included several homes, luxury travel and a collection of ultra-expensive luxury vehicles such as Lamborghinis and Ferraris. The investigation was able to separate the legitimate property management expenses from the personal living expenses that were being misidentified as business-related.