Looting the Family Office

The Wealth Report in the WSJ calls attention to this Boston Globe article:

The money manager of New England's wealthy Ayer family has accused a prominent Boston accounting firm of malpractice and other violations for failing to catch a former family employee who allegedly looted more than $57 million from its trust funds.

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The lawsuit is being brought by Essex Street Associates, a Beverly money manager for the descendants of Frederick Ayer Sr., an industrialist who owned factories in Lowell in the late 1800s. In a separate action, Essex Street, which is owned by the Ayer descendants, said its former employee, chief operating officer James F. Doorly, led a "double life" and looted the family trusts of $57 million at least since 1996. The Ayer family said Doorly spent the money on mistresses, a Gulfstream jet, vacation homes, gambling, and lavish international trips.

Maybe the multi-family office (see preceding post) isn't such a bad idea. If the MFO is linked to a bank with deep pockets, a victimized family might even get some money back.