Former Red Hat CEO Matthew Szulik, who hates spending a dime, claims he and his family were snookered for $60 million by their trusted personal financial adviser, a longtime friend his children used to call “Uncle Jim.”

Szulik filed suit in federal court on behalf of himself, his wife, his 96-year- old father and his three children right before Christmas charging TAG Virgin Islands Inc with fraud, breach of contract, breach of fiduciary duty, legal malpractice, conspiracy, negligence, negligent misrepresentation, malfeasance, breach of implied covenant and violations of the Investment Advisors Act, SEC regulations and the North Carolina Investment Advisers Act.

Szulik wants his money back, recompense for lost earnings and lost business opportunities, punitive damages and legal fees.

The 39-page suit claims that the Szuliks’ standing order was to invest their money conservatively in blue-chip stocks and bonds. Instead the fortune went into a dodgy horseracing venture, personal loans to a Mexico City “gentlemen’s club” connected with Penthouse magazine and other now worthless instruments.

The allegations include claims of a couple of million dollars in kickbacks masquerading as consulting fees paid to TAG and TAG chief James Tagliaferri for putting Szulik’s money in “corrupt companies.”

Tagliaferri, one of the backers of “Big Brown,” the horse named for UPS that won the Kentucky Derby and the Preakness in 2008, managed Szulik’s money since 1996, two years after Szulik joined Red Hat as president.

Apparently Szulik lost half the money he invested with Tagliaferri.