Short Seller Jim Chanos Sued by Partner Alleging Misuse of Funds

  • Conlon Holdings alleges that Jim Chanos owes it $10 million
  • Chanos & Co. founder calls the claims ‘puzzling and baseless’
Jim ChanosPhotographer: Victor J. Blue/Bloomberg
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Jim Chanos, the short seller who made his name and fortune on Enron Corp.’s demise, was sued by a partner that accused him of embezzling company funds for his personal use and enriching his girlfriend in the process.

Conlon Holdings, which invested in Chanos & Co. in 2020, claims that he used his firm, previously known as Kynikos Associates, as a “piggy bank.” Chanos, who disputes the claims, closed his hedge funds late last year after almost four decades.