TRUSTEE INVESTIGATING BANKING ACTIVITY IN COMPANY CONTROLLED BY PAGANES, FORMER HEDGE FUND PARTNER RICHARD MITTASCH
Miss Fortune has learned that Chris Paganes, disgraced former investment adviser and hedge fund crony of Battle Creek's "crooked chiropractor" Robert Buckhannon, is facing an investigation regarding asset transfers that occurred during his pre-bankruptcy "reach back" period. In an official "individual estate property record and report" for 2013, Paganes' bankruptcy trustee notes she is "investigating assets including a possible chapter 5 cause of action".
Paganes' official bankruptcy records indicate the trustee is focusing on the 2010 banking activity of Paganes' Michigan-based MFG Holding Company, L.L.C, including "all items presented for deposit into and wire transfers out of the entity's Chase Bank account".
Transfers of money during the period immediately prior to filing bankruptcy may be deemed fraudulent or preferential and subject to an avoidance (or unwinding) under the Michigan Bankruptcy Code.
CLAWING BACK FROM MICHIGAN TO LONG ISLAND: MFG HOLDING COMPANY, L. L. C.
But Miss Fortune has discovered documents that link Paganes' Michigan-based MFG Holding Company, L.L.C with a "foreign limited liability company" created on July 10, 2008 in New York by Long Island resident Richard Mittasch, one of Paganes' former hedge fund partners.
And the New York company's name? Why, it's MFG Holding Company, L.L.C.
Although Paganes formed his Michigan-based company back on February 28, 1996, there were no annual statements filed after 1998...until twelve documents--including a certificate of restoration and the delinquent annual statements--were filed on June 30, 2008.
Less than two weeks later, on July 10, 2008, Richard Mittasch filed paperwork with New York to form MFG Holding Company, L.L.C. as a "foreign limited liability company" with a Mineola, New York address.
Mittasch, a former registered securities broker now permanently barred, was affiliated with the Maximum Financial Investment Group Inc., a broker-dealer formerly registered with the SEC. Maximum served as trustee for the Robert Buckhannon's Vestium hedge fund and provided various broker-dealer services forBuckhannon's Arcanum hedge fund until the Financial Industry Regulatory Authority ('FINRA') expelled Maximum for anti-money laundering and net capital rule violations.
In case you're wondering, Maximum was a Michigan-based company formed by Chris Paganes. He was CEO of Maximum, but was permanently barred by FINRA "from serving in any principal capacity at a securities firm and suspended him from associating with any securities firm for nine months based on his conduct while he was Maximum's chief compliance officer."
In August 2008, Mittasch created Imperium Investment Advisors, with Paganes as one of the three managing members along with Glenn Barikmo.
Imperium replaced Maximum as Vestium's trustee in October 2008--same suit, different day.
Regular readers of this blog likely know what transpired next, but let's roll the video tape!
The crash of the Vestium and Arcanum hedge funds happened when a crooked chiropractor, six cronies, and an investment firm duped investors out of $34 million by bankrupting two hedge funds and skimming more than $16 million off the top. SEC complaints stated that the men "looted and bankrupted the hedge funds by steering millions of dollars to themselves."
And the investment firm that helped make that happen was run by--you guessed it--Chris Paganes and Richard Mittasch.
AND YOU WONDERED WHAT PAGANES WAS LIVING ON?
Certainly not the suspect Ship4Charities, Paganes' two-bit "shipping logistics company" that purports to donate "to charity on every package shipped".
Miss Fortune encourages Chris Paganes' bankruptcy trustee to dig into the Shea Mining & Milling shell game--I hear that Blair Mielke, Richard Mittasch's partner in the Harvest Midwest Group, could be sitting on $4 million in Standard Gold OTC stock.
Not a bad return for a company that began its life in the British Virgin Islands--courtesy of Robert Buckhannon--as Shea Mining & Milling.
And if you don't believe Miss Fortune, ask Buckhannon to tell you about the Privatbank IHAG Zürich account he held offshore for his Arcanum hedge fund.
Oh, wait, I just did!
The British Virgin Islands--a sunny place for shady people.
This story is heating up again!