Peter Thiel, founder of online payment website PayPal and hedge fund Clarium Capital Management, has been sued by Amisil Holdings, an investor that claims it was defrauded for eight years.

According to court papers filed in the US District Court for the Northern District of California, Amisil is seeking to recover $18m (€14.2m), the value of its investment in the hedge fund. Also named in the suit are Clarium's chief financial officer Jason Portnoy and Mark Woolway, a managing director of the fund and vice president of corporate development at PayPal.