Jesse Bogdonoff
Encyclopedia
Jesse Bogdonoff was financial advisor to the government of Tonga
and court jester
of Taufa'ahau Tupou IV
, the king of Tonga. He was embroiled in a financial scandal.
from China
.
In 1999 Bogdonoff recommended moving the Tongan portfolio out of the bulging stock market bubble
and into a pool of insurance backed investments called viatical contracts
managed by the Millennium Asset Management Company. In 2001 he learned that Herchell Hyatt, the owner of Millennium Asset Management Company, had stolen millions of Tonga's money and filed false accounting statements for the Tonga account. Bogdonoff arranged a recovery program for Tonga backed by Lloyds of London to protect against the losses.
The Tongan government became paralyzed in an internal political debate led by the Tongan democracy movement in its effort to gain ground by embarrassing the royal family, which dismissed the only senior government ministers who were attempting to implement the recovery plan to save the Tonga Trust Fund. Without the recovery plan the Tonga Trust Fund was effectively wiped out. The government proceeded to sue Bogdonoff and all the parties involved in the transaction for fraud and negligence.
Without admitting guilt of any fraud, Bogdonoff settled his part of the lawsuit in 2004.
Politics of Tonga
Politics of Tonga takes place in a framework of a constitutional monarchy, whereby the King has the executive power. Tonga's Prime Minister is currently appointed by the King...
and court jester
Court jester
A jester, joker, jokester, fool, wit-cracker, prankster, or buffoon was a person employed to tell jokes and provide general entertainment, typically for a European monarch. Jesters are stereotypically thought to have worn brightly colored clothes and eccentric hats in a motley pattern...
of Taufa'ahau Tupou IV
Taufa'ahau Tupou IV
Tāufaāhau Tupou IV, King of Tonga, GCMG, GCVO, KBE, KStJ son of Queen Sālote Tupou III and her consort Prince Viliami Tungī Mailefihi, was the king of Tonga from the death of his mother in 1965 until his own death in 2006...
, the king of Tonga. He was embroiled in a financial scandal.
Scandal
Bogdonoff made headlines in 2001 and 2002 after being accused of mismanaging millions of dollars from the nation of Tonga. He had been the Tongan government's financial advisor since 1994, claiming to have made the government millions in the rising stock markets of the booming 1990s. Bogdonoff managed the Tonga Trust Fund after it had been funded by the Tongan government in 1986 in a scheme in which the Tongan government sold passports to frightened Hong Kong nationals who were unnerved by the 1997 expiration of the British lease on Hong KongHong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
from China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
.
In 1999 Bogdonoff recommended moving the Tongan portfolio out of the bulging stock market bubble
Stock market bubble
A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation....
and into a pool of insurance backed investments called viatical contracts
Viatical settlement
A viatical settlement is the sale of a life insurance policy by the policy owner before the policy matures. Such a sale, at a price discounted from the face amount of the policy but usually in excess of the premiums paid or current cash surrender value, provides the seller an immediate cash...
managed by the Millennium Asset Management Company. In 2001 he learned that Herchell Hyatt, the owner of Millennium Asset Management Company, had stolen millions of Tonga's money and filed false accounting statements for the Tonga account. Bogdonoff arranged a recovery program for Tonga backed by Lloyds of London to protect against the losses.
The Tongan government became paralyzed in an internal political debate led by the Tongan democracy movement in its effort to gain ground by embarrassing the royal family, which dismissed the only senior government ministers who were attempting to implement the recovery plan to save the Tonga Trust Fund. Without the recovery plan the Tonga Trust Fund was effectively wiped out. The government proceeded to sue Bogdonoff and all the parties involved in the transaction for fraud and negligence.
Without admitting guilt of any fraud, Bogdonoff settled his part of the lawsuit in 2004.