Blackstone Partner Stole $40 Million From Friends, Family; Blames It On "Gambling Addiction"

Tyler Durden's picture

Earlier this year we profiled Andrew Caspersen's arrest. As a quick reminder, Caspersen is a 39 year old Harvard Law graduate and former partner at the Park Hill Group (formerly owned by Blackstone) who has been accused of defrauding investors through fake private equity investments.

Federal prosecutors claim that Caspersen ran a Ponzi scheme that defrauded friends, family and a hedge fund foundation out of nearly $40 million over an 18-month period, and in court on Tuesday Caspersen gave his reason for that - he just has a gambling problem.

From the NYT

But on Tuesday, Mr. Caspersen’s lawyer contended that his client, a former Wall Street executive with an Ivy League pedigree, was the victim of an uncontrollable gambling addiction that drove him for more than a decade. So gripping was Mr. Caspersen’s addiction, the lawyer said, that he checked his phone throughout the day for updates on the stock market’s direction and his “all in” bearish bets that ran into tens of millions of dollars.

 

Dressed in a black suit and pink tie at his arraignment in a Manhattan federal courtroom Tuesday afternoon, Mr. Caspersen, 39, told a judge that he had been treated for “compulsive gambling and mental health illness” issues since his arrest in March.

Brilliant, as if all of Wall Street and those even remotely connected to it aren't gambling on prices every day, and using their phone's constantly to see how the market is doing.

Caspersen's lawyer, Paul Shechtman, continued to try and drum up sympathy by telling the court that the addiction had built over time.

Mr. Shechtman described Mr. Caspersen’s addiction as having started with casino gambling and sports betting, and quickly turning into betting on the stock market while he was a student at Harvard Law. Mr. Caspersen’s father and brothers all attended Harvard, where a student center at the law school is named for the family.

As recently as February 11, Caspersen had $112.8 million in a brokerage account according to the NYT, and could have very easily paid back the nearly $40 million owed to those who trusted him with their money. However, the very next day Caspersen ordered his broker to place a new round of all-in bets that the market would fall that week. As it turns out, Caspersen timed the bottom perfectly - but had bet the wrong way. The market subsequently rose, resulting in Caspersen losing nearly all of the money. On March 9, Caspersen had $3.35 million left, and on March 26 he was arrested.

Caspersen's claims of having a compulsive gambling problem won't comfort the people that were stolen from of course. Those who Caspersen duped included the family of a longtime girlfriend who died on 9/11, and an old college classmate.

Mr. Caspersen even took about $1 million from the family of a longtime girlfriend, Catherine F. MacRae, who died on Sept. 11, 2001, during the terrorist attack on the World Trade Center, his lawyer said on Tuesday. Together with Ms. MacRae’s family, Mr. Caspersen had created a memorial fund to benefit education programs for children from low-income families. The lawyer said the money in the scheme was not from that fund.

 

Mr. Caspersen has also been charged with taking advantage of a college classmate at Princeton University who worked for Mr. Bacon’s firm. The friend, James McIntyre, invested $400,000 of his own money in Mr. Caspersen’s scheme and also gave the green light for a charitable trust affiliated with Moore Capital to invest close to $25 million.

Authorities say that Caspersen had sought to defraud investors out of $150 million, up from the $95 million cited in the original complaint. The new filing stated that Caspersen used money that was raised to "make periodic interest payments to earlier investors."

Caspersen's scheme was to tell investors that they were investing in PE firms, and the returns could be 15% - 20% a year. Prosecutors said five fictitious investment vehicles were used to raise money in order to carry out the scheme, and even made up employees and doctored documents when questioned by investors.

An internal investigation by PJT Partners (who now own the Park Hill Group) had concluded that Caspersen took about $40 million from investors in the last two years, of which $14 million came from friends and relatives, including his own mother, Barbara Caspersen.

Appearing before Judge Jed S. Rakoff of Federal District Court on Tuesday, Caspersen pleaded not guilty to one count of securities fraud and one count of wire fraud. However as the NYT notes, there have been negotiations taking place over the past several weeks, and Caspersen is expected to enter a guilty plea at a July 7 hearing.

* * *

There really isn't much to add to this story. The fact that a guy who had a privileged life resorted to not only pissing away $20 million of his own inheritance, but then stealing from friends and family, including his own mother says enough. No bullshit excuse of having a gambling problem will change those facts.

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HedgeAccordingly's picture

I am addicted to porn and I jiggle my jugglers constantly said Mr. finkle..:

But really. This is to be expected, can't trust these greedy scumbags. he already was rich, he needed Moar! blackrock addressss their shady securities lending business

hedgeless_horseman's picture

 

Here is an excellent book on recognizing and dealing with the epidemic of victimhood.

http://www.zerohedge.com/news/2016-05-09/all-accounts-i-was-real-smartas...

I use things I learned from reading it every single day.

 

NoDebt's picture

And they still won't let Pete Rose in the hall of fame.  

 

LowerSlowerDelaware_LSD's picture

So he ran a Ponzi scheme like the U.S. government Social Security Ponzi scheme?  Or is it like the gubmint employee retirement Ponzi schemes that tax payers will have to cover by cutting their retirements to pay for gubmint retirements?

Some Ponzi schemes are illegal.  Some are called "compassionate" and praised.

N0TaREALmerican's picture

 

And the OldFart's hip replacement ponzi,  don't forget that one.

Stanley Kubrick's picture

The road to hell is paved with good intentions....

I'm sure his intentions were pure, like the driven snow?

Asshole.

ShorTed's picture

just another sociopath from the allegedly "elite" part of our society...Fuck him and his harvard buddies.

ack's picture

Yep. Part eastern european jew. 

N0TaREALmerican's picture

 

Victimhood is just how the brain redirects the blame from "self" to "others".  
|

Why would any person with a functional bullshit generator NOT want to do that? 
|

We are human because we generate believable bullshit, and there's no better use for bullshit than blaming others.   That's why religion and politics exists.

iAmerican's picture

Big difference: God really does exist and America's Founders consciously constructed a "psychic parabolic mirror" enough of their society accepted, in conjunction with Adam Smith's Godly Capitalism, to pose an existential threat to the Prince of the Air's king/pope Ancien Regime now rebadged as the NWO to end the American Dream - God's prophesied "Promised Land."

Kirk2NCC1701's picture

BS is like Salt. You need some to survive, but too much will harm or kill you.

High amounts of BS are a form of delusion and a Learning Disability. Both are bad for you, if you want to learn and evolve.

If not, and you simply want to "Pass Go, collect $200", then keep rolling the BS dice.

Kirk2NCC1701's picture

Yes, good book. Another one that might interest you, is called "Games People Play", by Eric Berne, MD.

Insightful, useful.

N0TaREALmerican's picture

 

No better place to gamble than "the markets".

NoDebt's picture

That's what I was thinking.  Exactly how much more gambling can you do when you day job is the greatest gambling casino in the world?  Apparently there raslly is no such thing as "enough" with these megalomaniacs.

Q-Q-Q's picture

Shouldn't he have been bailed out, only fair!

knukles's picture

Same shit all over again.  Nobody is responsible.  We're a race of "victims".
Just like Paris Hilton getting out of rehab clutches a Bible and Alcoholics Anonymous books to her chest, fanned for all to clearly see the titles, and thus, is absolved!
I've an addiction, which is an illness and I've been to therapy.
Hallelujah I am Saved
Convenient excuses, promulgated by and large by the Left of Center, do not punish, by treat the criminal mentality thought, return the person to a fully productive life...

Bullshit

Regardless, people are responsible for their actions

ironicmerman's picture

I was looking for a shirt the other night and found my SAVE PARIS shirt I bought when she went to the penalty box.  Looking back, I'm lukewarm on the purchase.

SixIsNinE's picture

maybe you are thinking about LiLo ? Lindsay Lohan - Paris has never needed a rehab stint - quite a class act too, if i may say so  - she can handle her money & substances just fine .... now that little bratty brother of hers, that's another story !

wonder what Chesapeake's McClendon was thinking about responsibility when his life ended - intentional suicide or remote car hack -- we'll never know...

 

knukles's picture

Yes, you're right, it was Lindsay Lohan.
You know, she'd be an easy pickup at the front door when she's leaving rehab, just show up with a handle of Vodka, eight ball and pot and yougotcherselfoneheluvaparty

venturen's picture

why bother calling it defrauding....they all steal...it is the point of the job. Funny the "checks and balances" never catch anyone! 

 

public EXECUTION!

lasvegaspersona's picture

for gosh sakes...it was only 40 million...it took him nothing to earn...what is the problem....

Yes We Can. But Lets Not.'s picture

If I had $112.8MM in the bank as of February, as Mr. Caspersen is said to have, I'd have around $112.78MM today, plus any interest.  What's wrong with just chillin' and enjoying the simple life? 

Powerslaved's picture

I often wonder about that with these mega rich guys. When is it enough? I understand the chase is more fun than the catch but where does it end? When someone has that much money is it really just numbers on a screen?

dark pools of soros's picture

gotta get that G5 and a few islands to land on to start another orgy party

 

CORNFLOWER BLUE's picture

Clearly this fine upstanding citizen is terribly afflicted with Affluenza and he deserves all of the support and rationalization that we can offer as a society.  

 

Shame on you for trying to shame him, you serf!

Slomotrainwreck's picture

His clients had a 300% paper return on their deposits. Then, bam, one bad bet and accused of defrauding investor.

He was doing so good with his investments that it's realistic he could parlay that $3mill into $40 in no time at all. He needs a second chance to clear his good name.

No way he would double down again.

No way at all.

 

 

 

/s

venturen's picture

why bother calling it defrauding....they all steal...it is the point of the job. Funny the "checks and balances" never catch anyone! 

 

public EXECUTION!

venturen's picture

this might get him a position at Goldman if he plays his cards right

Conax's picture

Chester Johnson, you have been charged with molesting a 13 year old girl, how do you plead?

I plead insanity!

Insanity??

Yes your honor, I'm just nuts about that young stuff.

Bailiff, whack his peepee!

Yes We Can. But Lets Not.'s picture

Bailiff - that isn't among my official job responsibilities, so I respectfully decline your request, your Honor.

consider me gone's picture

How'd I know she was 13. She looked 15.

buzzsaw99's picture

his clients lost, therefore, ergo, they should get a bailout.

that's why i'm long this market, it will always get bailed out in the "long" run.

Ignatius's picture

My question is, will there be the same level of compassion for his "family and friends" who seek to satisfy their addictive need to avenge by publically beating him to death with hockey sticks and baseball bats?  What I'm saying is, have a heart.  These people will also need our empathy and understanding.

Ghost of Porky's picture

Judge: "Do you have anything to say for yourself?"

Caspersen: "If you just stake me another 20 mil I swear I can get it all back for you."

Sacker of Cities's picture

Who is in the market and does not check their smart phone!  Duhhhh!

 

I hope he gets sent to a nice cell with Bubba!

 

I wonder if the babe in the photo is still with him once she found out all of the money is gonnnnnnne!

 

She is probably out looking for a new guy to support her in the way she has grown use to!

Powerslaved's picture

Damn! And I was pissed at myself for losing $500 at the blackjack table last week.

N0TaREALmerican's picture

 

I suppose it's not really gambling if you use lots of complicated math or have a model.    

VWAndy's picture

 Dope fiends suck ass. This guys drug of choice is fiats.

Tim Knight from Slope of Hope's picture

From Wikipedia: "Andrew Caspersen is the son of multimillionaire financier Finn M. W. Caspersen, former chairman of Beneficial Corporation. The elder Caspersen died of a self-inflicted gunshot wound in 2009 after the opening of a federal tax-evasion investigation"

 

Sounds like quite a family.

N0TaREALmerican's picture

 

Generally, white-people are so nice an altruistic.   This family must be just an isolated bad apple. 

knukles's picture

Now that's some original research!
Kudos!

ack's picture

DNA tells the tale. Every. Fucking. Time.  

Bam_Man's picture

I think he has a bright future ahead of him in politics.

Bam_Man's picture

Once he completes the community service part of his sentence.

Herdee's picture

I take it that the grandmother had passed away and there was no piggy-bank to steal from in that age group.

buzzsaw99's picture

you went full retard. never go full retard.

DarthVaderMentor's picture

But the important question is: "Was he a Hillary Campaign donor?" He fits the profile.

wmbz's picture

If this prick was sorry for anything it would be, that he got caught. I'm sure he blames the assholes he stole money from.

The dickhead will be right back at ...in time.

bbq on whitehouse lawn's picture

This man is being hanged for betting against central banks.
If it was a real market he would have been rich and so would all of his friends and family. Some friends, want to play without risk. Welcome to wall street, it was never your money to begin with.
His face tells me he wanted to be one of the cool kids. His heart was not out to steal money, just got greedy and thought he could could out wit the cool kids with fancy market tricks. Problem is all the cool kids are all long bonds ( have been for ever ) and are not going to let anyone upset their ride.
His wife will stand by him for now. After he does 5 years in the cooler, who can say.
Best of luck, now he knows what central planning is. Life is one hell of an education.