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Bellator’s main investor being investigated for fraud

According to a report published by Fortune Magazine, Bellators main investor, Plainfield Asset Management (PAM) is currently the subject of a FBI investigation concerning allegations of fraud. No word from the organization being effected by a possible indictment hearing. Here is what Fortune had to say:

“The Federal Bureau of Investigation is probing whether Plainfield Asset Management, a hedge fund that once had $5 billion in assets under management, committed fraud by overstating the value of some of its investments and charging management fees based on those inflated assets.”

The firm was profiled by the magazine in January in a piece entitled: “The Fall of a Hedge-Fund Wunderkind”

Payout Perspective: has confirmed PAM’s status as Bellator’s majority shareholder. According to an SEC filing on February 26, 2010, Plainfield Direct, an investment fund managed by PAM, holds a 51.6% majority stake in Bellator Sports Worldwide LLC. The common stock position represents an investment of roughly $2.25M. As of the date of the filing, Plainfield also held nearly $2.92M in senior debt.

In 2009 Bellator CEO and Founder Bjorn Rebney told that Bellator had met all of its capital requirements with the backing of “hedge funds,” but declined to provide any specifics.

Source: MMAPayout, Fortune Magazine

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