A lawsuit accuses Brookfield Asset Management of fraud, attempted bribery and improperly limiting investments in one of Elon Musk’s companies.
A prominent Silicon Valley investor is in a bitter dispute with his former employer, one of the world’s largest asset managers, accusing it of fraud and attempted bribery.
In a lawsuit filed on Thursday in California, Josh Raffaelli, who until late last year was a fund manager at Brookfield Asset Management, said the company had mistreated investors in his funds as it sought to make up for losses in other parts of its business.
The 100-page complaint is notable in part because Mr. Raffaelli has close ties to Elon Musk, the world’s richest man. That relationship enabled Mr. Raffaelli’s funds to put money into Mr. Musk’s private companies, a coveted opportunity in Silicon Valley. But among Mr. Raffaelli’s allegations is that Brookfield improperly limited the amount that he could invest in a Musk company on behalf of Brookfield’s clients.
In December, shortly after Mr. Raffaelli filed a whistle-blower complaint with the Securities and Exchange Commission, Brookfield fired him, according to his lawsuit.
“Brookfield repeatedly betrayed the trust and best interests of its investors, and then fired the employee who challenged its behavior,” said Mark Mermelstein, Mr. Raffaelli’s lawyer.
Brookfield manages more than $1 trillion on behalf of pension plans, government investment funds and financial institutions. Until January, its chairman was Mark Carney, Canada’s new prime minister.