The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:After an ETF Shop Deal Collapsed, Backers Sued Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, August 21, 2018

After an ETF Shop Deal Collapsed, Backers Sued

News summary by MFWire's editors

Four months after the collapse of an ETF startup's sale, the firm and its founder are under legal fire over a marketing agreement with a banking giant.

On August 13, Keystone Associates and Cable Mountain Partners sued Elkhorn Capital Group [profile] and Elkhorn founder Ben Fulton, Bloomberg reports. Cable Mountain and Keystone accuse Fulton (now a bigwig at another ETF shop, ProShares) of misrepresenting a $500,000 marketing payment from Barclays as guaranteed, when the payment was actually contingent on sales. (That deal involved Elkhorn selling ETPs for Barclays.)

An unnamed source IDs both Cable Mountain and Keystone as being run by Larry Lunt, father of Lunt Capital Management founder John Lunt. LCM, in turn, powers the index behind one of Elkhorn's former ETFs, the Lunt Low Vol/High Beta Tactical ETF.

Fulton, Larry Lunt, a Barclays spokeswoman, and counsel for Keystone and Cable Mountain all declined to comment to Bloomberg, while the publication couldn't immediately reach John Lunt for comment.

Cable Mountain and Keystone are accusing Elkhorn and Fulton of common law fraud, negligent misrepresentation, and securities fraud. They claim to have suffered at least $2.5 million in damages. The case was filed in the U.S. District Court in Delaware.

Last year Veracen Investment Holdings (parent of Turner Investments) agreed to acquire Elkhorn, yet the deal fell through last spring. Another ETF shop, Innovator Capital Management, took over two of Elkhorn's ETFs, including the one powered by LCM, while the other two Elkhorn ETFs shut down. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use