But the authorities said that he blew through most of that cash “as a result of aggressive choices trading” in his personal brokerage account.
Daniel Levy, Mr. Caspersen’s lawyer, declined to comment.
Mr. Caspersen was a partner at the Park Hill Group, which specializes in raising cash for private equity firms and hedge funds. The Manhattan firm fired Mr. Caspersen on Monday and promptly removed his profile from its website.
Until last fall, Park Hill was section of the sprawling empire of the private equity giant the Blackstone Group. It is now section of PJT Partners, the advisory firm that was spun from Blackstone and is run by the investment banker Paul J. Taubman. PJT said in statement that it was “stunned and outraged” to learn of the allegations. The firm added that it was cooperating along with the authorities.
The case highlights the broader issue of exactly how a lot research and checking institutional investors actually do once making an investment, and exactly how a lot of it comes down to a personal connection and trust.
“This action amply demonstrates that even sophisticated institutional investors are not immune to financial scams,” said Andrew M. Calamari, director of the Brand-new York office of the Securities and Exchange Commission, which brought a civil complaint versus Mr. Caspersen.
It might additionally boost questions concerning the internal controls in place at Park Hill, offered that the authorities say Mr. Caspersen’s scheme went on for months prior to it was detected.
Shares of PJT Partners plunged nearly 11 percent on the news of the charges. Late Monday, Block & Leviton, the securities litigation firm, said it was investigating whether PJT and its officers and directors violated federal securities laws. The firm represents large institutional investors.
PJT said it believed Mr. Caspersen acted on his own. After discovering of potential improper behavior, the firm conducted an internal investigation and reported the matter to federal prosecutors in Manhattan.
Mr. Caspersen grew up mainly in an exclusive suburb in western Brand-new Jersey prior to attending the Groton School in Massachusetts, one of the most expensive boarding schools in the country. He was a leader of the football group and he additionally rowed.
After graduating from Groton in 1995, he went to Princeton University where he met Catherine F. MacRae, that was the daughter of a founding partner of the law firm LeBoeuf, Lamb, Greene & MacRae, which later merged to form Dewey & LeBoeuf. Both dated for several years.
Ms. MacRae, a research analyst at Fred Alger Management, was killed on Sept. 11, 2001, once terrorists crashed two planes in to the Globe Trade Center. She had worked in Fred Alger’s offices on the 93rd floor of the north tower.
Together along with Ms. MacRae’s family, Mr. Caspersen made a memorial fund to incentive education programs for youngsters from low-income families.
Mr. Caspersen’s father, Finn M.W. Caspersen, was a prominent philanthropist and the heir to the Helpful Corporation fortune. The elder Mr. Caspersen was chairman and chief executive of the consumer finance company for nearly two decades prior to selling the firm in 1998 for $8.6 billion to Household International, which was later acquired by the London-based bank HSBC.