Around Town

Court Denies New Canaan Man’s Appeal in Connection with $7.8 Million Award

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Calling some arguments borderline “frivolous,” a Connecticut Appellate Court has rejected a New Canaan man’s appeal of the state Superior Court’s decision to uphold the findings of the American Arbitration Association in connection with a $7.8 million award against him. Judge C.J. DiPentima in an opinion published Tuesday (embedded below) said the court was correct to deny Gregory Imbruce’s application to vacate the award. “The defendants cannot demonstrate that the arbitrator’s conduct amounted either to evident partiality, misconduct or an excess of authority,” DiPentima wrote in an opinion supported by two other judges. The decision is the latest blow to Imbruce, who has been embroiled in a longstanding legal battle that also involves two town residents who had invested with him. Investors—including New Canaan’s Brad Higgins and the late Bill Mahoney, formerly a partner at Bridgewater—had put money into three funds run by Imbruce to invest in oil and gas assets in Texas and Oklahoma.

Government

Losses Mounting for Former New Canaan Fund Manager

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In a strongly worded rebuke, a U.S. district judge last week dismissed a New Canaan man’s complaint against the American Arbitration Association in connection with a $7.8 million award against him. Judge Naomi Reice Buchwald of the Southern District of New York said the complaint filed by town resident Gregory Imbruce amounted to a “thinly veiled attempt” to strip the AAA of its immunity—a key defense to Imbruce’s claim that the AAA committed breach of contract, unjust enrichment and fraud, among other violations. The plaintiffs in the case are Imbruce and five companies in which Imbruce himself is the sole member, according to the court order (embedded below). Imbruce accused the AAA of wrongfully allowing his adversaries to pay tardily an administrative fee in the arbitration. That, in turn, allowed the adversaries in Imbruce’s claim to assert a monetary damages claim, resulting in the multi-million dollar civil theft award against him.

Around Town

Stamford Superior Court Confirms Finding of Civil Theft Against New Canaan Man

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Superior Court in Stamford this week denied a New Canaan man’s claim that an arbitrator had been biased, upholding a ruling last fall that found him liable for civil theft, breach of contract and Connecticut state securities violations as part of a $7.8 million judgment. In a decision issued Monday, the court found no merit in Gregory Imbruce’s arguments that the arbitrator “was biased and/or partial” and denied his request to vacate the arbitration award (see the full Memorandum of Decision embedded as a PDF at the end of this article). The decision concludes a longstanding battle that also involves two town residents who had invested with Imbruce. Investors—including New Canaan’s Brad Higgins and the late Bill Mahoney, formerly a partner at Bridgewater—had put money into three funds run by Imbruce to invest in oil and gas assets in Texas and Oklahoma. Concerns over how Imbruce was managing the assets culminated in arbitration, with lawsuits filed from both sides.

Around Town

$7.8 Million Judgment: Local Equity Fund Manager Found Liable for Fraud, Civil Theft

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Update 5 p.m. Sept. 15

Richard Gora, attorney for Gregory Imbruce, issued this statement on behalf of his client:

“Mr. Imbruce strongly disagrees with the arbitrator’s award and expects the decision to be dismissed due to numerous factors. Specifically, while the award does not find Mr. Imbruce liable for fraud, the Article falsely states that a judgment of fraud was entered against him. The Article also falsely implies and in fact states that the arbitration involved the SEC, which it did not. As such, the Article includes statements that are wildly and factually incorrect, manipulative, misleading and intentional.