PJT PartnersInc. said in a Form 8-K filed April 8 that it has substantiallycompleted its review of information available to it for the period of AndrewCaspersen's employment with Park Hill from early 2013 through the date of hisarrest.
In March, the SEC and the U.S. Attorney's Office for theSouthern District of New York announced actions against Caspersen over an alleged scheme todefraud investors of $95 million.
PJT Partners found that Caspersen conducted unauthorized andunlawful transactions outside the scope of his employment with Park Hillstarting in late 2014 through March. The transactions consisted of schemesCaspersen presented to his family and personal network to make investments inentities that he formed with names resembling parties in legitimate Park Hilltransactions. PJT Partners said no Park Hill clients were actual parties in histransactions, which he conducted alone.
PJT Partners said it found a small number of apparentvictims of Caspersen's schemes, aside from the party affiliated with thatreferred to a $25 million payment in the complaint that the U.S. Attorneyfiled. The victims consist of Caspersen relatives and friends, who madepayments totaling approximately $14 million in his schemes.
The company did not discover any evidence of irregularitieswhen it reviewed the legitimate transactions of Park Hill in which Caspersenwas involved.
Separately, in two instances instead of submittinglegitimate client invoices prepared by Park Hill in the amount of $8.9 million,Caspersen replaced them with false invoices containing modified paymentinstructions. He misdirected the client payments to an account that hecontrolled using an elaborate structure of entities, domain names and bankaccounts that he created. He subsequently wired the exact amount of thelegitimate invoices to Park Hill from accounts that he also controlled that hadnames identified with the clients. PJT Partners discovered these actions afterbeing alerted by Moore Capital Management to the investment scheme. The companydeclared that Caspersen did not have access to or control over the bankaccounts, financial system or financial records of Park Hill.
There has been no determination whether PJT Partners has anyliability with respect to the funds that Caspersen fraudulently obtained. Anyfinancial impact to the company would be substantially mitigated by insurancecoverage that it carried among other things.
PJT Partners, which terminated Caspersen, is reviewing allother actions against him that may be available to it. The company is alsoreviewing its practices and will make some improvements accordingly.