Victor Posner May Have Been Fraud Victim:...

Victor Posner May Have Been Fraud Victim: The financier--accused by the government of breaking securities laws with Ivan F. Boesky--may himself have been a victim of fraud, a federal magistrate found. U.S. Magistrate Nina Gershon recommended that Posner and Fischbach Corp., a New York-based electrical company he once controlled, be dismissed as defendants in a shareholder suit because they were also taken in by the crime. The suit, filed in Manhattan federal court, alleges that Fischbach, Posner and two British investors released false information in 1989 about the sale of Fischbach. The deal never took place because there was never any financing. And Gershon said that if there was a fraud, it was apparently caused by the two British investors, Irvin Davidson and Asher DeVere, who allegedly misled Posner and Fischbach directors into believing that they had the money to buy the company.