Cher sues to recover from financial firm over “rosy projections!”

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

Cher claims Sail Venture Partners and several of its principals defrauded investors to rake in millions in management fees, according to a lawsuit filed Wednesday in L.A. County Superior Court.

Questions:
1. When did this happen?
2. What did the managers do with the money?
3. Based on the information in the article, what do you anticipate that Cher will receive from the once $200 million empire, if she is successful in her suit?
4. What has happened to the 10 initial portfolio companies?

Source: Collins, A. (2016). Cher Sues Financial Firm for Fraud After $1.3 Million in Investments. MSN.com, June 9 (Retrievable online at http://www.msn.com/en-us/music/celebrity/cher-sues-financial-firm-for-fraud-after-dollar13-million-in-investments/ar-AAgOK6v?ocid=spartanntp)

Cher