Business - New York DA: NYC money man faked Belgian royal ties in scam Charged with stealing $7M

By Jennifer Peltz Associated Press Writer NEW YORK (AP) -- A money manager accused of concocting ties to a Belgian royal family to con investors out of at least $7 million denied the allegations Wednesday as he faced a mounting toll of civil and criminal charges. Guy Albert de Chimay pleaded not guilty to grand larceny, forgery and other criminal charges in a Manhattan state court, with federal Securities and Exchange Commission lawyers on hand to serve him with federal court orders related to civil fraud charges the agency unveiled earlier this month. Together, the cases accuse him of diverting his clients' money into homes in the Hamptons, hundreds of thousands of dollars in his divorce lawyers' bills, car payments and other personal expenses. Authorities also say he paid some investors off with other backers' money, Ponzi-scheme style. Chimay "denies the charges, and these are the early stages of a very difficult and complicated case," said his lawyer, David Liebman. "He denies doing any frauds, forging any documents." Chimay, 47, has run a New York-based firm, Chimay Capital Management Inc., that claimed to be the U.S. investment arm of the Chimay family, a centuries-old line of Belgian royalty, according to the SEC's federal court filings. More than 20 generations have inhabited the family's castle in Chimay, the same town where Trappist monks brew the beer of the same name. The money manager told clients he was a prince's cousin, according to the SEC. He claimed he had access to more than $200 million in "family money," plus $40 million of his own, according to the Manhattan district attorney's office. Trading on his phony pedigree and fictitious assets -- bolstered by invented bank statements -- Chimay persuaded a handful of his own relatives, friends and others to invest in a so-called "bridge loan facility," prosecutors said. It promised to return 12 percent a year by making short-term loans to carefully vetted companies, according to the SEC. Charged thus far with stealing nearly $7 million, Chimay is also suspected of trying to swindle $15 million more from "one of New York's major financial institutions," and prosecutors are continuing to investigate his dealings, Assistant District Attorney Aaron Wolfson said. Chimay was arrested June 11 in Wrightsville Beach, N.C. He was brought to New York Tuesday. He's being held without bail after his arraignment Wednesday. The top grand larceny charge against him carries a potential punishment of up to 25 years in prison, but he could face more if convicted of multiple counts, prosecutors said. Published: Fri, Jul 2, 2010

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