Olympia Capital, a fund administrator in Bermuda that services embattled Canary Capital Partners, was sued in June in New Yorks Eastern U.S. District Court for allegedly running a criminal enterprise to take control of real estate companies run by Thomas B. Donovan, Reuters reports.
Olympia allegedly offered financing to Donovan that did not exist and that would have left Donovan vulnerable, according to the civil suit. Neither Olympias founder, Oskar Lewnowski, a former executive with Drexel Burnham Lambert, or his attorney returned calls from Reuters seeking comment. Lewnowski was also named in the suit.
Olympia is the seventh-largest fund administrator in the world, according to HedgeWorld. It handles $5.8 billion in assets for 38 funds and has a 2% market share.
Meanwhile the New York attorney general has subpoenaed at least 11 other hedge funds, Dow Jones reports. And a hedge fund manager who used to work for Canary, Andrew Goodwin, founder of a number of fund companies, including Goodwin Trading, is reportedly cooperating with the attorney general.