From CNBC: 2024-05-29 13:03:54

Famed short seller Jim Chanos denies embezzlement allegations as “false, baseless, and defamatory.” Conlon Holdings files suit claiming Chanos used his firm as a “piggy bank” with $10 million in outstanding loans. Chanos refutes claims, stating loan was paid off in 2021 and he put over $30 million into his company since 2019.

Chanos, known for calling Enron’s collapse, closed his hedge fund last year due to underperformance. Lawsuit alleges he sold Miami apartment owned by his firm for $17.8 million without partners’ notice. Chanos’ girlfriend, Crystal Conners, was the sales agent on the transaction, potentially earning $540,000 in commission.

Conlon Holdings, run by Sean Conlon, accuses Jim Chanos of using his firm as a “piggy bank” with $10 million in loans over a decade. Chanos denies allegations, stating loan was paid off in 2021 and he put $30 million into his company since 2019. Chanos converted his hedge fund to a family office after years of underperformance.

Read more: Jim Chanos calls suit accusing him of embezzling funds ‘baseless and defamatory’