Skip to comments.EBERHARD SPENT 'HUSH $$' (bilked clients in scheme to hide shady deals, sex romps)
Posted on 05/09/2003 4:54:32 AM PDT by LizEdited on 05/26/2004 5:13:47 PM PDT by Jim Robinson. [history]
A high-flying Wall Street investment adviser accused of bilking his clients out of millions has been hit with new charges - that he spent more than $2 million buying the silence of three employees who threatened to tell his wife about his secret sex romps and shady business deals.
(Excerpt) Read more at nypost.com ...
Another CNN disaster. Boy, they sure can pick 'em.
Or shareholders money in publicly traded company. Of any inducement to hide a crime.
The new court papers say that in January 2002, Eberhard was approached by his bookkeeper Brian Mercier, 36, who told him another employee would reveal his shady dealings to the police and tell Eberhard's wife, Kristen, about his "multiple intimate relationships" unless he coughed up a large sum of money.
Mercier, who has pleaded guilty to the shakedown, also showed him a bound book of his e-mails to lovers, which he and the other employee had entitled, "My True Life."
A third employee, who was not named, obtained the $750,000 from Eberhard in monthly installments of $53,000.
"In order to conceal the true nature of these payments . . . Eberhard signed a severance agreement" with the third employee, the court papers say.
The hush money payments were allegedly made through the proceeds of Eberhard's fraudulent business practices.
Prosecutors accuse Eberhard, who has homes in Manhattan and Dutchess County, of churning his client's accounts to create large commissions for himself.