11
Investors: Fund Manager Blew Cash on Porn, Swingers Club
He's also tied to a Palin-themed porno
By Kevin Spak
|
Posted Aug 12, 09 11:35 AM CDT
|
Share
(Newser)
–
A group of hedge fund investors are suing California moneyman Milton Ault III, saying he used their money to “fund his lifestyle, which included the development of a ‘swingers ranch’ in the Catskills and other pornographic-related endeavors,” according to court filings. Ault, who says he’s been slinging stocks since age 11, calls the lawsuit “worthless,” though he has dabbled in adult entertainment, once producing a Sarah Palin-themed porno.
According to the suit, Ault bilked a dozen hedge funds out of the $4.2 million invested in his Zealous Inc. That money was supposed to be used to create a new securities investment platform. But in September, Ault merged Zealous with Adult Entertainment Group, which issued a press release touting plans for a 140-acre East Coast establishment catering to the “fast-growing swingers lifestyle.” Ault now says that was “simply a joke.”