One Equity boss Dick Cashin faces legal battle with fired top deputy

One Equity Partners boss Dick Cashin is not only facing a Securities and Exchange Commission investigation – but also a lawsuit with an executive recently fired by the prominent buyout firm, On The Money has learned. 

The WSJ was first to report that OEP — which used to serve as JPMorgan’s private-equity arm — was being investigated by the SEC over “communications with investors about its past and future performance violated rules.” 

The report adds that OEP is in settlement discussions with the SEC and could be fined as much as $5 million. The probe has focused on whether the firm’s president shared material non-public information with outside individuals — although there is no evidence of insider trading.

The probe has added to mounting tensions between OEP’s president Cashin – a 70-year-old buyout baron who spun off the fund from JPMorgan in 2015 — and one of his former top deputies, sources told On The Money. 

Cashin, a former Olympic rower, appears to be at war with David Han — the firm’s senior managing director and a member of its investment committee and valuation committee — who was canned earlier this year.

This week, Han filed a so-called “books and records” request for internal documents and communications in Delaware Chancery Court. 

One source said this is an indication Han believes he was “screwed out of money” and that this underscores “a big dispute between Han and OEP.”

“This sounds like a messy internal struggle and it starts with a battle over information: who said what to whom and were they authorized to say that?” Columbia Law School professor John Coffee told On The Money.

According to the filing from July 17, “Documents have not been provided to Mr. Han when they should have been provided to him… Mr. Han is further concerned about a potential SEC investigation or issue.”

Han’s request is directed towards OEP but is focused on communications that Cashin had with investors as well as with the SEC.

A spokesperson for OEP told On The Money: “David Han was terminated for cause by the firm earlier this year due to multiple instances of misconduct, including violations of company policy.”

“The firm disputes his claims and is prepared to demonstrate that they are without merit.” the rep added. “The lawsuit he commenced is in apparent retaliation for his termination for cause.”

Han did not respond to a request for comment.