The fee was supposed to be based on growth in profits from
Stein and Spencer Management, the complaint states, received at least
Cavello is a subsidiary of
Stein, the founder and chairman, holds degrees in medicine and public health and certifications in public health and financial analysis. He has taught advanced investment research at
Cavello claims that a presentation sent to Enstar and personally pitched by Stein said Spencer Management would be paid
In common business parlance and in the insurance industry, the complaint states, profit means financial gain due to operational activities or investments. It does not include an increase in a company's value due to capital raised by selling shares.
Cavello, Enstar's subsidiary, paid
Eight months later, Cavello claims, it discovered that the stock offering presentation was incomplete.
Cavello claims that the performance fees diverted funds that were needed for ordinary business operations.
For 18 months, according to the complaint, Cavello and other shareholders tried and failed to negotiate a settlement. Last year, Cavello formally requested that
The lawsuit, Cavello states, "is an action seeking to remedy the fraud" perpetrated by
Cavello is represented by