CHICAGO - Gubernatorial candidate Bruce Rauner backed the boutique investment firm of a longtime business associate several years ago, only to be surprised when the Securities and Exchange Commission later shut down the firm for fraud.
In 2004, Mr. Rauner made a personal $4.5 million startup investment in fund manager Acartha Group LLC, a suburban St. Louis firm founded by Burton Douglas Morriss. Before Acartha, Mr. Morriss had already arranged one deal in which the duo made more than $75 million. Mr. Rauner, an avid outdoorsman, also owned a hunting camp with Mr. Morriss.
But in 2012, the SEC seized control of Acartha, accusing Mr. Morriss of defrauding investors of $9.1 million.
Mr. Rauner was a “passive investor” who was “misled and defrauded” by Mr. Morriss, like dozens of others, Mike Schrimpf, a spokesman for Mr. Rauner's campaign, says in an email. “Bruce is angered and outraged by Morriss' actions.”
via Crain's Business - Photo WTTW