The court-appointed receiver in the Danny Pang case criticized the California financier for running his investment firm like a "personal piggy bank," and claimed that abuse and mismanagement along with a faltering economy had left a hole of between $400 million and $600 million in the firm's books.

The receiver, Robert Mosier, alleged in a federal court filing that more than $80 million in questionable personal and business expenses were financed by the firm's investors, including a recent $1 million Disney cruise for the entire staff, the purchase of several jets and $6.9 million in undocumented loans to Mr. Pang.

Mr. Pang, 42 years old, has denied wrongdoing and is contesting the seizure of his firm as unjust.

The SEC in late April filed a civil suit accusing Mr. Pang of running an international fraud. At that time, U.S. District Judge Philip Gutierrez in Los Angeles appointed a receiver to take charge of Mr. Pang's Irvine, Calif. firm, Private Equity Management Group Inc., or PEMGroup.

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