Ex-Capula Compliance Head Says Fund Expensed Art, Private Jets

Capula Investment Management’s former chief US compliance officer accused the hedge fund firm of wrongfully firing him for raising concerns about the expensing of artwork and private jet travel as well as certain trading activity.

Igor Abramov sued London-based Capula late Monday in Manhattan federal court, claiming he was subject to retaliation and terminated in July after suggesting the $32 billion firm might be violating Securities and Exchange Commission regulations on pass-through expense disclosure, conflicts of interest and risking investor funds.

Abramov’s allegations touch on concerns about an expense structure that top firms have increasingly adopted for multistrategy funds. ...