Tonga says its court jester took nest-egg

The kingdom of Tonga is not amused. It entrusted its fortune – admittedly a meagre fortune – to the official court jester and promptly lost it in a string of bad investments.

The jester, a Californian investment adviser with a sideline in "wellness" cures, insists he made an honest mistake, but the Tongan government believes he has been laughing all the way to the bank, and is suing to try to recover the money.

Jesse Bogdonoff first became chummy with King Taufaahau Tupou IV as an account manager at the Bank of America in San Francisco. That was where the Tongan leader had parked $26m (about £18m) in government revenues.

Mr Bogdonoff was soon being wined and dined in the Pacific islands and given the official title of court jester. Entrusted with the kingdom's nest-egg, equivalent to half of Tonga's annual income, Mr Bogdonoff quit his job at Bank of America, but came unstuck after investing in a dodgy asset management company in Nevada and a string of failing internet companies.

Mr Bogdonoff, who learnt of the suit by reading about it in Californian newspapers, says he is the victim of factional intrigues among the Tongan leadership. But he feels chastened by the experience. "The jester has so many implications for the human psyche," he said. "For me, it now represents the divine fool."