It would aim to maximize Logicworks’ “longterm value,” which meshed with Burden’s vision. Pamplona Capital said it wanted to acquire Logicworks for its new tech-focused fund, Pamplona TMT I, L.P., the lawsuit goes on. One of them was from Pamplona Capital Management LLP, which, according to the suit, billed itself as managing more than $10 billion in assets for “a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds.” 2, 2016, Logicworks had received 14 bids, the lawsuit states. Five years later, when Seaport opted to unwind its position, Logicworks decided to seek a majority investor that would buy out Seaport’s stake and a portion of Burden’s, which Burden hoped would provide a necessary cash infusion and allow him to stay involved in the company’s operations.īy Sept. In 2011, Burden and his team sold a minority interest in the company to Seaport Capital Partners, a VC firm in the Wall Street area. The company serviced clients in the financial and health-care sectors who entrusted it with “managing highly sensitive, proprietary, and confidential information,” according to Burden’s suit.Īs Logicworks grew, it found itself in need of a capital infusion, the lawsuit goes on. In 2001, Digital Telemedia shifted its focus to cloud-hosting services and rebranded as Logicworks. What was supposed to be a lifeline for Burden ultimately wound up costing him, he claims, “tens of millions of dollars.” Rise and fallīurden, whose late father, politician/philanthropist/broadcasting mogul/art collector/man-about-town Carter Burden Jr., has been described as the “ premier example of a limousine liberal,” founded Digital Telemedia Inc., a New York City internet service provider, in 1993. Because Logicworks was saddled with serious legal and geopolitical exposure due to its Russian backers, Burden had to unload it at “artificially deflated prices,” his lawsuit says. But by that time, few buyers had the stomach for it.
In the end, Burden says he was forced to sell his company. immediately followed, slapping their own sanctions on Fridman, Aven, Khan, and Kuzmichev. A little more than two weeks later, Khan, who reportedly had a penchant for attending business meetings armed with a pistol, and Kuzmichev, who last year had a pair of yachts seized by French authorities, were added to the list. 28, 2022, Fridman, founder of the U.S.-blacklisted Alfa Bank, along with Alfa Bank president Aven- who served as Russia’s minister of foreign economic relations in the early 1990s, when both Aven and Fridman were accused of having links with organized crime, money laundering, and drug trafficking-were hit with E.U. Suddenly, Burden found his company had become kryptonite to banks, investors, and government regulators, according to his lawsuit. Soon, the four oligarchs with whom Burden, 55, had unwittingly gone into business became international pariahs cut off from the global banking system. Burden were either deflected or simply falsely answered.”
Concerns from banks and outside investors were swept aside. “Fights with regulators were conveniently explained away. Burden to prevent him from learning the truth,” states the 22-page lawsuit, which was filed in Manhattan Supreme Court on Friday and added to the public docket Saturday morning. “For years, Pamplona’s representatives lied to and obscured the truth from Mr. (None of them are named as defendants in Burden’s suit.) The four oligarchs are all said to be connected to the Kremlin, and at least one has been credibly accused of international money laundering. What Burden didn’t know, and about which he says he was fed an ongoing string of lies by intermediaries, was that Pamplona Capital Management, the outfit that in 2016 bought a majority stake in Logicworks, was “less than a proper investment fund and more of a shell company” created to invest the personal fortunes of Mikhail Fridman, Petr Aven, German Khan, and Alexey Kuzmichev, according to him. private equity firm secretly fronting for a cabal of wealthy Russian oligarchs with direct ties to Vladimir Putin.Ī group of financiers that Carter Burden III thought were providing a much-needed financial boost to his successful cloud services provider, Logicworks, were in fact responsible for its eventual collapse, forcing a fire sale for a fraction of the company’s worth, according to a newly filed fraud lawsuit. The scion of a venerable New York family descended from 19th century railroad and shipping tycoon Cornelius Vanderbilt says he was bamboozled by a U.S.
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