Wine Mogul Says Fidelity Has Cheated him Out of Millions
Peter Deutsch is seeking as much as $400 million to $500 million in damages from Fidelity in arbitration before the Financial Industry Regulatory Authority. This amount is what he claims he could have earned if Fidelity had not prevented him from reaching his goal of a 66 percent stake in a company that he had already poured tens of millions of dollars into. Fidelity is contesting the claims and says it prevented Mr. Deutsch from trading as they were concerned that he was trying to illegally manipulate China Medical shares, according to documents entered into court and people familiar with the company’s views.
“Seeking as much as $400 million to $500 million in damages from Fidelity in arbitration before the Financial Industry Regulatory Authority”
Among the things Deutsch learnt, according to papers he filed in the U.S. District Court for the Southern District of New York: While he was trying to gain control of China Medical, he alleges Fidelity was secretly buying the stock so aggressively that it drove up the price of China Medical’s shares at a time when they were supposed to be helping him build his stake.
About Peter Deutsch
Deutsch Family Wine & Spirits was founded in 1981 by Chairman, Bill Deutsch, to market quality wine and spirits produced by prestigious families from major wine and spirits regions of the world. The business that initially began with two employees importing a few family producers from France over three decades ago has grown to include a prestigious roster of internationally renowned, award-winning brands serviced by over 170 employees.
Bill’s son Peter Deutsch is CEO. The two generations of the Deutsch family work side by side in their continuous quest to build strong brands and relationships throughout the wine and spirits industry.
Fidelity is a privately held company founded by Edward C. Johnson II in 1946, which is owned by employees and the Johnson family. Fidelity Management & Research Company, the US investment management division of Fidelity Investments, acts as the investment adviser to Fidelity’s family of mutual funds. FMR Co has three fund divisions: Equity (head quartered in Boston, Massachusetts), High-Income (Boston) and Fixed-Income (Merrimack, New Hampshire). As of 31 December 2014, Fidelity Investments’ assets under management stood at $2.03 trillion.
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