Ridgewood fund manager’s death sparks suit by investors
Sunday March 10, 2013, 11:49 PM
BY KIBRET MARKOS
STAFF WRITER
The Record
When investment fund manager George Swan of Ridgewood died in a car crash in November, he left behind a huge financial mystery now pitting his wife, Kathy, against dozens of investors in a Bergen County court battle.
To Kathy Swan, her husband’s death was a tragic accident that left her and the couple’s four children to grieve.
To dozens of investors who fear they’ve lost millions in what they call a “sham” hedge fund set up by George Swan, his death occurred in a mysterious crash, about the same time their funds vanished.
Police haven’t been able to determine what caused the crash. Swan was driving his wife’s 2011 Lexus in rural upstate New York when it plowed at high speed into the back of a parked tractor-trailer. He was pronounced dead at the scene.
Even more suspicious, investors say, is that the 53-year-old Swan, who lived in a $1.4 million home and managed millions of dollars for investors, left an estate his wife says is worth just $25,000. Kathy Swan, who was a managing member in George Swan’s Theory Capital Group, meanwhile stands to collect more than $13 million from his life insurance.
Armed with a high-powered national law firm, the investors are now taking Kathy Swan to court, alleging she was a principal in a massive fraud orchestrated by her husband.
Find out where the money came from to pay the life insurance premiums.
Don’t believe it. Anyone who met George knows he was a good man.
So then where are the funds, #2?
This is interesting. If the death is ruled a suicide, as the story presented above would seem to imply, the insurance company is going to walk away. $25k probably wouldn’t cover a year’s worth of taxes on that $1.4M house.
Somewhere, there is an offshore account in an obscure name with a lot of money in it, I would guess.
#2……. 6 million dollars gone, wife left with less than 25k…….and he was a good man?
#3……there is probably no offshore account….but plenty of wild spending of other peoples money.
#4, it’s worth noting that he transferred full ownership of the house to his wife before the crash. I can see a scenario where he got wiped out in 2008, kept it hidden and was able to Madoff the fund with new contributions while at the same time skimming the principal for living expenses. His wife might have known nothing about it. Also, a Lexus isn’t really the kind of car a high rolling fund manager would drive…interesting that the accident that killed him occurred in it and not his car (I would love to know what kind of car that is – did he choose the cheapest car available to take himself out?).
He might have honestly thought that he was taking care of his wife by letting her collect on the insurance.
That whole “fell asleep at the wheel” thing sure is dodgy though.
Unbeknown to Ammarell and the other investors was that Swan had been twice sanctioned by regulators in 1997, for failing to provide audited financial statements and for executing securities transactions without the knowledge of customers, according to the Financial Industry Regulatory Authority.
The records show Swan was fined more than $170,000 and barred from associating with securities dealers.
ur right #2…Great guy!!
I knew George in grade school, junior high and high school.
I don’t know if I knew a more honest person than George, this would be a total break from his character.
No matter how you look at it, at best it is a sad story for all parties.