Buddy Fletcher: Headed for the Big House?
Posted on November 29th, 2013 in Uncategorized | 20 Comments »
And no, I don’t mean his Connecticut mansion, which is up for sale anyway.
According to the Wall Street Journal, court-appointed bankruptcy trustee Richard Davis has issued a 300-page report on Buddy Fletcher’s hedge fund, Fletcher Asset Management, alleging that Fletcher created “’wildly inflated valuations’ for his investments to generate more than $30 million in fraudulent fees and attract new investors to his network of funds.”
Davis concluded that Fletcher’s funds were largely insolvent since 2008 and that his business was essentially a Ponzi scheme, dependent on an inflow of new money to pay previous obligations.
This is a far more thorough version of what I found when I reported on Fletcher for Boston magazine about 18 months ago, so all this isn’t surprising. But it does leave me with a couple of questions.
If Fletcher’s funds have been defunct for five years now, why try to buy another apartment in the Dakota, when he must have known that his financial records would be reviewed? And why make matters worse by filing a lawsuit charging racial discrimination? (Davis’ report found that Fletcher siphoned about $1 million to pay the expenses of that lawsuit.)
My only answer: The man has become delusional—convinced, perhaps, that at some point he would make the money back. Or possibly that race was an impermeable shield against accusations of impropriety (hence the Dakota lawsuit).
Here’s the second question: At what point is Harvard forced to rename the Alphonse Fletcher Jr. professorship, currently held by Skip Gates?
It’s not just that the man is a scoundrel and Skip Gates now holds a professorship named by and for a crook. It’s that you have to wonder if the money used to pay for that professorship wasn’t also stolen.
20 Responses
12/3/2024 1:14 pm
Richard, credit to you for being one of the first journalists to take on the formidable, Teflon-coated Fletcher Myth Machine. Those of us who suffered at the hands of this self-styled “hedge fund wizard and philanthropist” are still waiting for the courtroom justice that is headed Buddy’s way, sure as Christmas. But the Fletcher Gotterdammerung is well underway.
But, as you rightly point out, there is an equally Teflon-coated accomplice in all this who has yet to be held accountable: Harvard University. Specifically, they need to answer how valuable the Calgene contract (which formed much of the basis of Fletcher’s gift endowing Skip Gate’s chair) actually turned out to be? I would imagine it was largely worthless- and based on Harvard’s reported actions, they have appeared to receive far less than Fletcher’s claimed $4 million.
To spell it out clearly: it would appear Harvard, for the first time ever, created a university chair “no money down” almost entirely on the basis of race. If they are truly concerned about racism in America today- as the rest of us are- it’s hard to think of a more shocking example of singling out one race for special favors not offered to others. Skip Gates, too, who I recall feasting on many an investor-funded private lunch in Buddy’s executive dining room, needs to come clean on this apparent racism or face the shame of being a beneficiary of this outrage.
As a Managing Director and Director of Research at Fletcher who worked on the deal with Roger Salquist of Calgene, as well as being Buddy’s roommate at Harvard for two years, I had a chance to witness the early days of the Fletcher machine in the 1990s first hand.
I, too, recall- as the current report suggests- pressure put on “valuation consultants” and staff to approve valuations that seemed excessive. In fact, the first time I recall seeing such consultants at Fletcher was during the period just before the Calgene contract itself was donated to Harvard.
After the consultants had finished their report on what we all knew to be a disputed contract, I remember the document being physically passed around the trading floor for all of us to sign. I think even the private chef was required to do so. When I questioned why we were being asked to sign off on a valuation document that we all had nothing to do with, and no relevant expertise to judge, I remember Buddy’s angry response: “What the hell am I paying you for?” To this day I can see him running the back of his fist against the salt patch that always emerged at the corner of his mouth when enraged (which was often).
Perhaps this will all strike a chord with Quantal?
As for the idea of Buddy being deluded, all I can say is that Buddy’s favourite saying during the eleven wasted years I was his roomate, close friend, and business colleague was “I’m one hurtin’ puppy”: perhaps he knew? Perhaps we all should have known? Certainly, his classmates at Harvard’s Phoenix-S.K. Club who impeached him as President in 1986-87 for financial impropriety and replaced him with Richard Kennelly must have known. I remember because, as his roommate, I spoke in Buddy’s defense before the Club.
There were few to stand up to The Myth after 1997. Denis Kiely, as I recall, was never anything more than a yes-man and hatchet-man for Buddy- his original role was helping Buddy dispose of employees and friends who had outlived their usefulness at Fletcher Asset Management (Buddy used to have his driver Manuel drive him in circles around the GM Building in his Bentley until Security had escorted the unwitting victim out of the building; he would then be phoned to be told it was safe to return). Others, however, named in the report, such as Peter Zayfert, who I recall often joking in the trading room about Buddy’s “no money down” strategies and colorful investor-supported lifestyle, should have known better and stood up for what was right.
The fat lady is clearing her throat. Let’s see if Harvard and Skip are on stage or in the audience when the crimson curtain comes down.
12/3/2024 1:16 pm
Richard, credit to you for being one of the first journalists to take on the formidable, Teflon-coated Fletcher Myth Machine. Those of us who suffered at the hands of this self-styled “hedge fund wizard and philanthropist” are still waiting for the courtroom justice that is headed Buddy’s way, sure as Christmas. But the Fletcher Gotterdammerung is well underway.
But, as you rightly point out, there is an equally Teflon-coated accomplice in all this who has yet to be held accountable: Harvard University. Specifically, they need to answer how valuable the Calgene contract (which formed much of the basis of Fletcher’s gift endowing Skip Gate’s chair) actually turned out to be? I would imagine it was largely worthless– and based on Harvard’s reported actions, they have appeared to receive far less than Fletcher’s claimed $4 million.
To spell it out clearly: it would appear Harvard, for the first time ever, created a university chair “no money down” almost entirely on the basis of race. If they are truly concerned about racism in America today– as the rest of us are– it’s hard to think of a more shocking example of singling out one race for special favors not offered to others. Skip Gates, too, who I recall feasting on many an investor-funded private lunch in Buddy’s executive dining room, needs to come clean on this apparent racism or face the shame of being a beneficiary of this outrage.
As a Managing Director and Director of Research at Fletcher who worked on the deal with Roger Salquist of Calgene, as well as being Buddy’s roommate at Harvard for two years, I had a chance to witness the early days of the Fletcher machine in the 1990s first hand.
I, too, recall– as the current report suggests– pressure put on “valuation consultants” and staff to approve valuations that seemed excessive. In fact, the first time I recall seeing such consultants at Fletcher was during the period just before the Calgene contract itself was donated to Harvard.
After the consultants had finished their report on what we all knew to be a disputed contract, I remember the document being physically passed around the trading floor for all of us to sign. I think even the private chef was required to do so. When I questioned why we were being asked to sign off on a valuation document that we all had nothing to do with, and no relevant expertise to judge, I remember Buddy’s angry response: “What the hell am I paying you for?” To this day I can see him running the back of his fist against the salt patch that always emerged at the corner of his mouth when enraged (which was often).
Perhaps this will all strike a chord with Quantal?
As for the idea of Buddy being deluded, all I can say is that Buddy’s favourite saying during the eleven wasted years I was his roomate, close friend, and business colleague was “I’m one hurtin’ puppy”: perhaps he knew? Perhaps we all should have known? Certainly, his classmates at Harvard’s Phoenix-S.K. Club who impeached him as President in 1986-87 for financial impropriety and replaced him with Richard Kennelly must have known. I remember because, as his roommate, I spoke in Buddy’s defense before the Club.
There were few to stand up to The Myth after 1997. Denis Kiely, as I recall, was never anything more than a yes-man and hatchet-man for Buddy– his original role was helping Buddy dispose of employees and friends who had outlived their usefulness at Fletcher Asset Management (Buddy used to have his driver Manuel drive him in circles around the GM Building in his Bentley until Security had escorted the unwitting victim out of the building; he would then be phoned to be told it was safe to return). Others, however, named in the report, such as Peter Zayfert, who I recall often joking in the trading room about Buddy’s “no money down” strategies and colorful investor-supported lifestyle, should have known better and stood up for what was right.
The fat lady is clearing her throat. Let’s see if Harvard and Skip are on stage or in the audience when the crimson curtain comes down.
12/3/2024 3:46 pm
Nowhere left for you to hide Buddy, Not behind your blackberry and e-mails and not behind your race.
12/4/2024 6:15 am
While the Dakota has said no, Rikers and the DOJ is apparently happy to process his application for an apartment. I understand they’re currently doing the credit check and references.
12/4/2024 11:08 am
Dr Stephen Cass is still angry for being fired for cause…Insider trading. People in glass houses should not throw rocks
12/4/2024 11:49 am
Noone knows for sure bur rumours abound
12/4/2024 1:54 pm
Dr. Stephen Cass is having far too much fun to be angry. That said, I’m glad to hear that Mr. Noone apparently “knows for sure” whatever it is you’re referring to?
Mr. IntheKnow (did it take you long to think that one up? In Hollywood they would say your nomme de guerre is a tad too “on the nose”), if you could explain to us what a “bur rumour” is we might take your allegations more seriously.
Better yet, as you seem to believe that such rumours “abound” (nice word choice; that dictionary wasn’t a total waste of money), perhaps you’d like to put your actual name in print, as I have, and make your statement before Mr. Edward Hayes and the SEC?
Nah, didn’t think so.
Merry Christmas (and Happy Birthday 😉
12/4/2024 7:41 pm
Dr Cass,
Are you implying that IntheKnow/Mr Noone is your “Buddy”?
12/4/2024 8:51 pm
Far from it, my dear AnonyRat- for the following reasons:
1) Mr. Fletcher and his friends named in the fraud allegations are far too busy reading subpoenas from the Justice Department to waste time reading their own fan mail.
2) Mr. IntheKnow is clearly illiterate. Mr. Fletcher, on the other hand, went to Harvard. To imply they are one and the same is to imply that Harvard would admit, for reasons known only to them, students who are unqualified to graduate from there.
3) If you look at the time stamps of Mr. IntheKnow’s entries, you will see it took him exactly 41 minutes to lose his nerve, panic, and retreat from a statement that he knew to be verifiably untrue. Mr. Fletcher, on the other hand, has shown admirable tenacity proving that the Dakota Board that elected him their President is, in fact, racist. Indeed, that’s how he got himself into this mess, and why we’re having this conversation in the first place, isn’t it?
AnonyRat is a much better name than IntheKnow though
12/5/2024 1:38 pm
Dr. Cass has left a comment on my blog with a lot of interesting detail.
http://harry-lewis.blogspot.com/2013/11/they-arent-all-angels.html
12/12/2023 12:58 am
At this point you have to wonder what this man’s endgame is?
12/13/2013 5:43 am
Word from the bunker is that he’s given orders for Field Marshall Kiely’s units to launch a diversionary attack against the Dakota and SEC pincers encircling him while he and a crack team of lawyers and valuation consultants (“Rechtsberaterkommando”) make their way to the secret Weasel’s Nest in Connecticut to fight on against racism, taxes, and bad stuff.
12/13/2013 9:55 pm
I think he threw Kiely under the boss after the Louisiana pension fund audio recordings surfaced. As for the “Weasel’s Nest” in CT, that too seems to be a relic of the past. You can’t have a platoon without bread.
12/17/2013 1:31 am
If you were a male employee at Fletcher it seems you either got thrown under the boss or under the bus!
12/31/2013 2:22 pm
Wow - Buddy…. What do you think of your high-and-mighty status now??? How embarassing.
Those poor people in Louisiana lost their life savings. All because of your selfishness, greed and disillusion.
The world eagerly awaits the final sinking of your ship.
1/20/2014 8:38 pm
I had to put a face to the larceny at hand, Dr. Cass I wish the M.B.T.A. Retirement Fund had the information you possessed before they let that lame for Director of the Fund Carl White back in to do Buddy work for him.
Now Carl’s hired at Fletcher solely for his connections to a 2 billion dollar pension fund become plain to see for all!!
Carl couldn’t drum up any business for Alphonse I just wonder how long it took before Carl got that call to come into the office himself?
Another rat with friends or connections to 2 billion dollars is a nice animal to have when funds get low!!
Have fun in jail hopefully practical application will prevail in oral assignments Alphonse? From what I hear you’ve hit the jackpot again!!
Thanks Dr. Stephan Cass I learned a lot about the man that stole from my pension.
1/20/2014 8:42 pm
I had to put a face to the larceny at hand, Dr. Cass I wish the M.B.T.A. Retirement Fund had the information you possessed before they let the former director of the fund Carl White back in to do Buddys work for him.
Now Carl’s hiring at Fletcher solely for his connections to a 2 billion dollar pension fund becomes plain to see for all!!
Carl couldn’t drum up any business for Alphonse? I just wonder how long it took before Carl got that call to come into the office himself?
Another rat with friends or connections to 2 billion dollars is a nice animal to have when funds get low!!
Have fun in jail hopefully practical application will prevail in oral assignments Alphonse? From what I hear you’ve hit the jackpot again!!
Thanks Dr. Stephan Cass I learned a lot about the man that stole from my pension.
1/26/2014 6:52 pm
Thank you, Karma. As an alum, I continue to hope that Harvard will come clean on their role in this rather sorry affair- giving away “discounted” university Chairs on the basis of race. At the moment, with the exception of people like Harry Lewis, there seems to be little being done in the politically-correct halls of Harvard. But when the FBI, SEC, various Attorneys General join Louisiana, the Dakota, the bankruptcy court, etc perhaps they’ll see the need to do the right thing?
Wonder how those Fletcher Fellowship “pledge-not-commitment” (in other words, “not a guarantee in that sense of the word”
grants are coming along?
2/26/2014 9:55 am
Well done, Buddy. You made the New York Times! 😉
http://dealbook.nytimes.com/2014/02/24/pension-funds-sue-on-a-deal-gone-cold/
The Bankruptcy trustee is right though. Buddy is not Madoff. Madoff apparently treated his closest friends well, and was loyal to them. And of course, Madoff was much more successful than the Dakota’s very own Martin Luther Bling. Still, nice photo.
3/23/2014 5:18 pm
Wow, twice in a month, Mr. Fletcher. We’re proud of you!
http://dealbook.nytimes.com/2014/03/21/skadden-to-pay-4-25-million-in-fletcher-bankruptcy-case/
The only question seems to be why this guy isn’t in jail yet?