Ex-CEO of North Carolina Software Firm Sues Financial Advisers

December 30, 2010

The former CEO of Raleigh-based software firm Red Hat Inc. is suing his family’s financial advisers, saying they misused $60 million.

Matthew Szulik (ZOO-lik) and his family filed the federal lawsuit in North Carolina against TAG Virgin Islands Inc.

The Szuliks say they wanted their money invested in a conservative portfolio of blue chip stocks and bonds. But they say about $60 million was improperly placed in questionable investments that are now worthless.

The family claims in court documents filed last week the firm received millions in kickbacks for the investments. TAG did not immediately respond to a request for comment.

Szulik stepped down as Red Hat’s CEO at the end of 2007 to deal with family health issues. He left his post as chairman this year.

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