Cornerstone wants its $5 million back |

Cornerstone wants its $5 million back

Aspen Times Staff Report

Cornerstone Private Capital, LLC, is attempting to recover $5 million it recently reimbursed to 40-plus investors who lost money through the misdeeds of the company’s former president.

Michael R. Wise, former Cornerstone president, admitted last September to “misappropriating” the funds. Soon after his announcement, Cornerstone announced it would pay back all the people who lost money.

Thomas McCloskey, Cornerstone’s president and CEO, said the bridge loan company will try to recover that money from Wise via a receivership that was instituted on Oct. 16, 1998.

“We basically stepped up and made everybody else whole,” said McCloskey. “Now we’re going to try to recuperate those funds from Michael Wise’s assets.”

The receivership effectively froze Wise’s assets and holdings, placing them under the control of a court-appointed receiver. Pitkin County District Court will officiate over the dispersal of those liquidated assets and holdings after March 22, when all claims against Wise must be filed.

Wise has not been arrested. The investigation into his financial improprieties is currently being handled by federal authorities.

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