COMMERCE/LEGAL/WILBUR ROSS: “Commerce Secretary Wilbur L. Ross and the firm he founded were sued by three of his former colleagues who say WL Ross pocketed management fees from the general partnerships that handled its private-equity investments.
The lawsuit, filed Wednesday in New York State court, claims WL Ross covertly took management fees from general partner entities that the investment firm was only allowed to charge to passive, outside investors.
David Storper, David Wax and Pamela Wilson said in the lawsuit they were required to invest their own money in return for stakes in those general partnerships, which they retained after leaving the firm. They said their partnership interests were a ‘significant part’ of their compensation packages but were diluted when the firm took fees it wasn’t entitled to…
A spokeswoman for Invesco Ltd., the firm’s parent company, declined to comment. A senior managing director at WL Ross said in an October email that the management-fee calculations had been fully audited ‘and no issues were noted,’ according to court records.”
-Andrew Scurria, “Wilbur Ross Sued Over Fees By Firm’s Former Executives,” The Wall Street Journal online, Nov. 15, 2017 07:47pm