Michael Huffington, the wealthy former Republican congressman from California, is suing the Carlyle Group and its co-founder, David Rubenstein, over misrepresentations and deceptions Huffington claims they made regarding his $20 million investment loss in Carlyle Capital Corp., Carlyle’s failed publicly traded mortgage fund.
Carlyle “offered to sell shares of stock in the fund by knowingly or negligently representing that, among other things, the fund was ‘conservative,’ ‘low risk’ and that the ‘downside [was] very limited,’” according to the suit, filed in Massachusetts state court on Monday. Huffington, the ex-husband of political pundit Arianna Huffington, lost “the full value of his investment” when Carlyle Capital blew up last year.
The Carlyle investment came about at a July 4, 2006, celebration in Iceland honoring former President George H.W. Bush, the suit says. At the dinner, Bush introduced Huffington to Rubenstein, a managing director of the sprawling private-equity group.
Bush 1 set up his buddy! I knew that the market’s losses were to big even the insider Cronies took a hit nobody looses $20 million without screaming!