Summary Judgment Obtained Against Private Equity Firm, Its Founder and His Friend for Defrauding Detroit-Area Public Pension Funds

Defendant Onyx Capital Advisors and its money manager founder, defendant Dixon, raised approximately $23.8 million from three public pension funds for a start-up private equity fund, and then illegally used money invested by the pension funds to cover personal and other business expenses. Approximately $5.4 million was misappropriated under the guise of management fees and illegal diversions of purported investments into used car companies controlled by Farr. Defendant Farr assisted in the scheme through three companies he controlled, in which the Onyx fund “invested” millions of dollars. Farr diverted this money to another company he owned, then withdrew and gave it (back) to Dixon or used it to make payments to contractors building a multi-million dollar house for Dixon. Farr also kept some money for himself.