David Molner, a prominent Hollywood film financier who runs Screen Capital International and the Aramid Entertainment Fund has been sued in Los Angeles Superior Court by investors in the latter fund. The plaintiffs, Wimbledon Financing Master Fund, WFM Holdings and Stillwater Market Neutral Fund, are charging breach of fiduciary duty and fraud.
The plaintiffs describe themselves in the legal complaint as “non-voting investors” in Aramid Entertainment Fund Limited, a Cayman Islands mutual fund established in 2006. The suit alleges a “systematic looting and unreasonable self-dealing transactions” in a fund that has been behind such ventures as Incentive Filmed Entertainment, Sierra Pictures, and which also bankrolled Stuart Ford’s acquisition of 80% of the equity in IM Global from the troubled financier David Bergstein.
Molner was unavailable to comment and there was no other comment forthcoming from the plaintiffs.