{"id":11207,"date":"2024-05-28T22:50:47","date_gmt":"2024-05-28T22:50:47","guid":{"rendered":"https:\/\/topat10.com\/?p=11207"},"modified":"2024-05-28T22:50:47","modified_gmt":"2024-05-28T22:50:47","slug":"legendary-shortseller-jim-chanos-allegedly-used-firm-as-a-piggy-bank-raking-in-millions-for-himself-and-his-girlfriend-partner-claims","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=11207","title":{"rendered":"Legendary shortseller Jim Chanos allegedly used firm as a &#039;piggy bank,&#039; raking in millions for himself and his girlfriend, partner claims"},"content":{"rendered":"\n<p>Jim Chanos, the short seller who made his name and fortune on Enron Corp.\u2019s demise, was sued by a partner that accused him of embezzling company funds for his personal use and enriching his girlfriend in the process.<\/p>\n<div>\n<p>Conlon Holdings, which invested in Chanos &amp; Co. in 2020, claims that he used his firm, previously known as Kynikos Associates, as a \u201cpiggy bank.\u201d Chanos, who disputes the claims,\u00a0<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-11-17\/short-seller-jim-chanos-to-shut-hedge-funds-after-38-year-run\" target=\"_blank\" aria-label=\"Go to https:\/\/www.bloomberg.com\/news\/articles\/2023-11-17\/short-seller-jim-chanos-to-shut-hedge-funds-after-38-year-run\" rel=\"noreferrer noopener\" class=\"sc-65eb153f-0 gxOXYL\">closed<\/a>\u00a0his hedge funds late last year after almost four decades. \u00a0<\/p>\n<p>The suit, filed in New York State court over the weekend, involves $10 million of outstanding loans that Chanos borrowed from his company over more than a decade. Conlon alleged that Chanos \u201cnever intended on paying the company back, but instead planned on using his power as general partner to run the company into the ground, enjoy the tax benefits of his financial shenanigans, and leave his partners with nothing.\u201d<\/p>\n<p>The suit also alleges that Chanos sold his luxury apartment in Miami\u2014which was owned by Chanos &amp; Co. \u2014for $17.8 million earlier this month without notifying his partners.\u00a0<\/p>\n<p>Chanos\u2019 girlfriend, Crystal Conners, acted as the sales agent on the deal, which would have netted her $540,000 at standard commission rates, according to the suit.<\/p>\n<p>\u201cIn other words, Chanos not only sold the company\u2019s property but did so in a way that he could pay his girlfriend more than half a million dollars of money that did not belong to him,\u201d the lawsuit alleges.<\/p>\n<p>Conners didn\u2019t immediately reply to messages seeking comment.\u00a0<\/p>\n<h3 class=\"wp-block-heading\">\u2018Puzzling and Baseless\u2019<\/h3>\n<p>In an interview, Chanos, 66, called the lawsuit \u201cpuzzling and baseless.\u201d He added: \u201cThe facts will show that the internal loan in question from the company was paid off in 2021.\u201d\u00a0<\/p>\n<p>Conlon, a Chicago-based firm run by Sean Conlon, alleged that Chanos looked to re-characterize capital contributions to the company as loan payments.\u00a0<\/p>\n<p>Brian Nichols, Chanos\u2019 former chief financial officer, said in an affidavit filed along with the suit that his boss acknowledged the loan was still outstanding as part of his 2022 tax return.\u00a0<\/p>\n<p>Conlon Holdings is seeking an order restraining Chanos from transferring the proceeds of the Miami apartment sale. It also demands his removal as general partner of his firm and the appointment of a temporary receiver. \u00a0\u00a0<\/p>\n<p>Chanos reached the apex of his fame by shorting Enron in 2000, when the stock was a Wall Street darling. In the second half of 2001, revelations of accounting fraud at the company caused investors to flee, leading to its bankruptcy. Chanos emerged from the collapse as a star in the investment world.<\/p>\n<p>In recent years, his investments were less successful. A short position on <a href=\"https:\/\/fortune.com\/company\/tesla\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/tesla\/\" class=\"sc-65eb153f-0 gxOXYL\" rel=\"noopener\">Tesla<\/a> Inc. foundered and Chanos announced last year that he was winding down his funds, which had less than $200 million at the time, down from about $8 billion in 2008.<\/p>\n<\/div>\n<div data-cy=\"subscriptionPlea\">Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. <a href=\"https:\/\/www.fortune.com\/newsletters\/cfodaily?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=cfo_daily\" target=\"_self\" aria-label=\"Go to https:\/\/www.fortune.com\/newsletters\/cfodaily?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=cfo_daily\" class=\"sc-65eb153f-0 gxOXYL\" rel=\"noopener\">Sign up<\/a> for free.<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Jim Chanos, the short seller who made his name and fortune on Enron Corp.\u2019s demise, was sued by a partner that accused him of embezzling company funds for his personal use and enriching his girlfriend in the process. Conlon Holdings, which invested in Chanos &amp; Co. in 2020, claims that he used his firm, previously [&hellip;]<\/p>\n","protected":false},"author":451,"featured_media":11208,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[123],"tags":[],"class_list":["post-11207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Legendary shortseller Jim Chanos allegedly used firm as a &#039;piggy bank,&#039; raking in 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