Former CEO of Real Estate Private Equity Investment Firm Charged with Securities Fraud

Audrey Strauss, the Acting United States Attorney for the Southern District of New

York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York

Ofce of the Federal Bureau of Investigation (“FBI”), announced today the arrest of

ERIC MALLEY, the founder and former chief executive ofcer of real estate private

equity investment frm MG Capital Management L.P. on charges of securities fraud

and wire fraud for his role in a scheme to fraudulently induce hundreds of individuals

to invest a total of more than $50 million in two real estate investment funds by,

among other things, lying about his own prior experience and investment track record

and about the nature and characteristics of those funds. MALLEY was arrested this

morning in New Canaan, Connecticut, on a criminal complaint (the “Complaint”) and

will be presented before a magistrate judge in the Southern District of New York.

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