Portus Founder Returns After Two-Year Flight
by Paula Schaap, Reporter , November 14, 2007
hedgefund.net 
Portus Alternative Asset Management founder Boaz Manor finally showed up in a Toronto court Tuesday to face charges that he defrauded investors.
After a two year absence which included a flight across Europe and residency in Israel, Manor came back after an Israeli court lifted a ban against him leaving the country. He was released after he posted bail of CAN$250,000 ($260,000) and required to live with his parents.
Manor, and his cofounder Michael Mendelson, are accused of running what was essentially a Ponzi scheme. At its height, Portus was supposed to have more than CAN$800 million in assets from about 26,000 investors.
Those investors were left high and dry when Portus collapsed in 2005. Manor took off after the Ontario Securities Commission charged him with securities fraud.
KPMG, Portus’ court-appointed receiver, has launched a lawsuit in Israel in an attempt to get money back for investors.
A KPMG spokesman said the firm was involved in the negotiations regarding Manor’s return to Canada, “in that KPMG wanted to reserve the right to pursue any remaining assets in Israel or any other part of the world.”
KPMG is particularly interested in about $8.8 million in diamonds that Manor said he bought as an investment, the spokesman said.
Mendelson is reportedly cooperating with prosecutors. He is scheduled to be back in court Nov. 19.
Manor’s next court appearance is set for Nov. 27.
Manor is being represented by Toronto attorney Brian Greenspan, whose brother, Edward Greenspan, was media magnate Conrad Black’s defense attorney in his Chicago fraud trial.
A call to Brian Greenspan seeking comment was not returned.
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