[5] Between 2002 and 2008, David Einhorn, the manager of Greenlight Capital, a hedge fund engaged in heavy short selling of Allied's stock as he tried to demonstrate that the company's valuation of its illiquid securities was inflated.

[7] Einhorn's activities in relation to Allied were also examined by the SEC to determine whether his statements about the company were intended to manipulate its stock price.

[13] In his book, Einhorn explains how he uncovers the fact that Allied Capital is basically run as a ponzi scheme and in order to keep the appearances of a valid investment proposition, Allied Capital is forced to cook the books by constantly overpricing its loans and the value of its subsidiaries.

[citation needed] In January 2008, Allied completed a structured secondary transaction with Goldman Sachs.

The sale to Ares was approved by shareholders on March 26, 2010,[3] and was finalized on April 1 with Allied closing for the last time at $5 a share.