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Private Debt Fund Founder Arrested On Fraud Charges

Tiomkin Law Offices of Elliott Tiomkin > Legal News  > Private Debt Fund Founder Arrested On Fraud Charges

Private Debt Fund Founder Arrested On Fraud Charges

Law360 (August 11, 2020, 8:43 PM EDT) — The founder of Direct Lending Investments was arrested in California on Tuesday on charges of concealing overdue loans to inflate the value of the firm’s private debt holdings by $300 million over four years.

Brendan Ross, 47, faces 10 counts of wire fraud for allegedly posing $2 million in servicing rebates from the loans’ originator as payments on more than 1,000 nonperforming loans between 2014 and 2018. As a result, prosecutors say Ross fraudulently collected millions in management fees and kept investors from jumping ship.

The U.S. Securities and Exchange Commission filed a parallel civil suit against Ross on Tuesday. According…

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