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Investors, Lenders and Investigators Pile On in Light of Pending Claims of Tax and Securities Fraud and Theft of Client Funds
Fraud Alert is updating its readers about the ongoing implosion of Connecticut-based Old Hill Partners Inc. and its principal John C. Howe. Old Hill Partners Inc. is a private hedge fund located in Darien Connecticut while John C. Howe lives in Westport, Connecticut.

This Editor has learned that Old Hill Partners and Mr. Howe have consulted with two New York law firms about making a bankruptcy filing to ward off recent attacks, investigations and legal challenges by creditors and investors.

Fraud Alert’s Editor Jacob Reinstein notes, “Our sources have told us that it is just a matter of time before Old Hill Partners and Mr. Howe, individually, file for bankruptcy protection. The pressure is simply too insurmountable.”

Old Hill Partners, John C. Howe and their various private hedge funds are under investigation for tax and securities fraud based on a whistleblower filing made by a Boston man.

There are additional charges forthcoming based on filings about to be made by a second whistleblower who accuses Old Hill Partners, John C. Howe and others of engaging in a conspiracy to defraud their private investors by “siphoning” client funds through use of off-shore entities. Some of those funds were diverted to Mr. Howe’s wife and daughter, Jacqueline Howe, both of Westport, Connecticut.

The activities of Old Hill and Mr.See the Top 10 Worst Complaints in Darien, CT Howe became noteworthy when, in the summer of 2014, several media organizations carried the whistleblower’s fraud allegations in a series of on-line articles published by Fox News, Whistleblowers International (WBI), Investors News, and this Fraud Alert, among others.

As Mr. Reinstein observes “ Now that the Old Hill Partners and John Howe fraud cases are out in the public, its private investors know about it and are demanding answers. So does Old Hill’s lenders.”

Continues Reinstein, “Of course, those answers are rather ugly. If truthfully told, Old Hill and Mr. Howe would admit that they have defrauded investors out of millions and there was no way to pay it back. It is that simple.”

What is exacerbating the pressure is that several lenders are demanding that Old Hill and two specific funds repay lines of credit that are outstanding.

Says John Bune, an E.U. legal advisor, “The fact that Old Hill and Mr. Howe are under ongoing fraud investigations may trigger loan violations making the debt callable upon demand.”

For investors in the Old Hill Partner funds, a bankruptcy filing could be ominous.

Says Bune, “In bankruptcy, the lenders get paid first, and the investors get paid last. That is the fundamental problem with private hedge funds. Yes, there are high returns when times are good. But when they turn sour such as in the Old Hill case, the investors get screwed.”

What is to happen to John Howe, Old Hill Partner’s key principal?

According to one attorney close to the transaction, John Howe is likely to be forced into personal bankruptcy if Old Hill Partners seeks bankruptcy protection. Says Reinstein “Investors and lenders will surely sue John Howe for committing fraud. The numbers will be astronomical. Mr. Howe’s only hope is to file bankruptcy and hope he can somehow survive.

Says Reinstein “We now know that Old Hill Partners and Howe may both file bankruptcy.

Jan 01, 2015
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  • Ge
      Jan 02, 2015

    Old Hill Partners’ Investors Demand Money Back in Light of Frauds Perpetrated and Not Disclosed

    Old Hill Partners and John C. Howe Hid Information From Investors about Ongoing Allegations of Tax and Securities Fraud and "Siphoning" Client Funds.
    Darien Connecticut is home to Old Hill Partners, Inc. and its private hedge funds, which, along with its executive John C. Howe, are under an IRS and SEC fraud investigations.
    Investors News has learned that additional charges may be made against Mr. Howe and his funds by a second whistleblower who claims to have evidence to implicate Old Hill Partners, Mr. Howe, and others in an elaborate scheme to skim investor funds for Mr. Howe's personal benefit.
    Old Hill Partners and John C. Howe are being accused for the second time in recent years of taking investor funds. Previously, in an earlier case, the New York Post in its article Fund's Flip Play-CEO Gets Shares reported that Mr. Howe had moved investor funds into his personal accounts that lead to another investigation.
    Says Annette Ryder, an investment advisor: "Being accused one time of stealing client funds can be considered an honest accounting error. But, doing it twice is a diabolical and illegal act."
    This deteriorating situation at Old Hill Partners has lead some of Old Hill's private investors to seek an exit from Mr. Howe's funds in order to salvage their investment balance before the funds may implode. According to one investor who spoke with Investor News and asked not to be named in this article, some investors believe that Old Hill Partners and John C. Howe mislead them by failing to disclose the ongoing fraud investigations and by inducing them with representations of unusually high expected returns.
    Continues Ryder: "The lure of sizeable hedge fund returns in Old Hill’s funds can be intoxicating and blinding at the same time, making an investor oblivious to the underlying risks inherent in the funds.’
    Because the private hedge fund market is small, news of any negative developments spreads quickly.
    Says Ryder, "We have seen Old Hill's anticipated implosion occur before with other funds, with the same predictable outcome. The Allen Stanford $7 billion fraud case comes to mind. First, there are allegations of an illegal activity. Then, news of the fraud activity spreads and creates a frenzy among investors. Next the investors demand their money back. Then, any banks that providing financing to the hedge fund demand repayment of their loans. At this point, the game is officially over. The fund is out of business and the investors file lawsuits against the fund's management."
    Investors in Old Hill's funds should be very careful not to get out of Old Hill's funds too late. Investors considering investing in Old Hill's funds should look at other funds that do not have the air of impropriety associated with them.

    Old Hill Partners

    1120 Boston Post Road, 2nd Floor
    Darien, Connecticut 06820


    [protected] (Fax)

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