Liquidators of two investment funds are suing DLA Piper, claiming the firm helped the funds’ investment manager misappropriate millions of dollars. The funds, called SCIF Funds, are in liquidation in the Cayman Islands. ICP Asset Management, founded by Thomas Priore, was investment manager to the funds and a client of DLA, according to ICP Strategic Credit Income v. DLA Piper, 654216-2013, which seeks $80 million in damages. Liquidators claim DLA helped ICP and Priore to misappropriate more than $36 million from funds to make payments owed by Triaxx Funding, another investment vehicle ICP managed. Triaxx was a collateralized debt obligation that bought and held residential mortgage-backed securities.
The suit in Manhattan Supreme Court claims Lucien White, of counsel at DLA, told Priore and ICP they could characterize money transfers from SCIF Funds as a loan, although he knew there was no agreement to repay the SCIF Funds.
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