Cantor Fitzgerald accused of shifting assets to boost Nevada gaming business
Financial services firm Cantor Fitzgerald is accused of sneaking technology out of a subsidiary to beef up its Nevada gaming business, depriving an investor in the subsidiary the chance to benefit from that technology.
Refco Inc., a bankrupt futures brokerage, alleged in a recently unsealed March lawsuit that Cantor Fitzgerald secretly gutted its subsidiary Cantor Index Holdings and shifted technology, including real-time mobile trading devices, to the parent company's Nevada operations.
Cantor Gaming owns and operates several Las Vegas casino race and sports books. Refco held a 10 percent stake in Cantor Index.
The suit alleges that while shifting assets, Cantor Fitzgerald cited Cantor Index as the source of much of its business. The lawsuit cites articles from the New York Times, Wired magazine and Casino Journal that quote Cantor officials as saying Cantor Index’s achievements formed the underpinnings of Cantor’s success in Nevada gaming.
The move robbed Refco of the opportunity to benefit from the technology it invested in, the complaint alleges.
The lawsuit asks for monetary and punitive damages for Cantor Index and other Cantor Index entities.
Defendants named in the suit include Cantor Fitzgerald CEO Howard Lutnick and Cantor Gaming President Lee Amaitis, as well as Cantor G&W (Nevada) L.P. The case was filed in U.S. District Court for the Southern District of New York.