Head of Burrill & Co fired amid fraud allegations

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Steve BurrillSteven Burrill has been fired as head of a $283m venture capital fund due to alleged fraud and misuse of capital.

Former managing director of Burrill & Co Ann Hanham has filed a lawsuit against Burrill, saying that unauthorised payments of $19.2m were made to him and his affiliates from a fund launched in 2006 and called fund III, said Reuters.

Hanham said that chief legal counsel Victor Hebert and chief financial officer Helena Sen were aware of these transactions.

According to the suit, only five of 25 investments in the firm’s second fund were profitable.

Hanhan and fellow managing directors Roger Wyse and Bryant Fong asked Burrill to return the cash. Burrill and Hebert acknowledged the need to reimburse the fund, but Hanham said in the suit that by the end of the month “there was no cure in place”, according to the report.

Last December Burrill & Co transferred ownership of its Capital Fund IV to new firm Biomark Capital Partners.

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