(Bloomberg) — Hedge fund billionaire John Paulson used a sham buy of a luxurious penthouse in Puerto Rico to improperly enrich himself by $10 million on the expense of his household belief, his spouse alleges in a lawsuit that accuses him of hiding billions of {dollars} in property through the divorce.
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Jenica Paulson claimed that her husband agreed in 2020 to purchase the apartment on the St. Regis Bahia Seaside Resort for an artificially low worth of $5.6 million from a 2009 household belief, which owned the property. The penthouse is presently valued at $15 million, she stated in an up to date criticism filed in state court docket in Manhattan on Wednesday. She stated the deal successfully allowed him to take away $10 million from the belief to which he was not entitled.
John Paulson, 67, has a fortune of $5.1 billion, in keeping with the Bloomberg Billionaires Index. In her July 2022 lawsuit, Jenica Paulson accused him of secretly creating three irrevocable trusts, ostensibly for the good thing about their two kids however in actuality to guard property for himself. It’s demanding compensation of no less than $1 billion.
The acrimonious cut up provides a uncommon glimpse right into a high-profile divorce in New York, the place marriage proceedings are typically confidential. John Paulson filed for divorce in September 2021. The couple doesn’t have a prenuptial settlement. Days later, the New York Publish reported that he was relationship a 35-year-old nutritionist and Instagram influencer, Alina de Almeida.
The 2 events within the case have been scheduled to argue Thursday about John Paulson’s movement to dismiss the case in state court docket, however they agreed to postpone the listening to to be able to tackle the allegations within the amended criticism.
James T. Smith, John Paulson’s legal professional, informed the choose that the brand new criticism “doubles down” on what his consumer alleges have been flaws within the lawsuit — particularly, that it failed so as to add their kids as vital events as a result of they’re beneficiaries to the belief.
Smith stated the brand new declare and case could belong in one other court docket as a result of it alleges misconduct on the a part of the trustee, and that Jenica Paulson could not have standing to pursue the go well with as a result of she will not be a beneficiary of the 2009 belief.
Robert S. stated: Cohen, Jenica Paulson’s legal professional, stated the amended criticism was prompted by the lawsuit filed towards John Paulson in Puerto Rico earlier this month, which “prompted us to look into the matter extra deeply.”
Earlier this month, John Paulson was sued by his longtime enterprise accomplice in Puerto Rico, who claimed the billionaire made fraudulent claims to persuade him to take a position $17 million in a luxurious automobile dealership on the island. Paulson denied the allegations, calling them “baseless.”
John Paulson has made no funds for the penthouse house in Puerto Rico and has racked up a whole bunch of 1000’s of {dollars} in unpaid “hospitality charges,” his spouse stated. Along with monetary property, the household has an intensive portfolio of actual property investments, together with a ranch in Aspen, Colorado that was beforehand owned by a Saudi prince, and an property within the Hamptons.
The Paulsons married in 2000, after first assembly within the Bear Stearns cafeteria, the place she served him and his workers. Most of his fortune was made throughout their marriage – and he’s identified for betting towards the US housing market earlier than the 2008 subprime disaster, elevating $20 billion for himself and his hedge fund buyers. He transformed the fund right into a household workplace in 2020 and was named president of Bausch Well being Cos. in 2022.
Within the revised criticism, Jenica Paulson additionally questioned why JPMorgan denied her request to distribute cash to her from a 2006 belief fund, which she understood to be valued at greater than $1 billion. The financial institution, as trustee, stated it wanted extra data to find out whether or not the appliance would depart the youngsters “adequately insured,” in keeping with the criticism.
However she stated the financial institution’s request was only a pretext as a result of it represented a small portion of the fund’s worth. She stated there was “no potential means” the request would depart the youngsters in need of funds.
The kids have been the first beneficiaries of the 2006 and 2009 belief funds, however didn’t obtain cash from both, in keeping with the criticism.
The Puerto Rico co-defendant, Fahad Ghaffar, is searching for greater than $50 million in damages from Paulson. Ghaffar claims Paulson informed him in February 2022 that he would make investments his cash in convertible bonds that might finally give him 50% possession within the F40 company. Ghaffar claims in his lawsuit that the Paulson Household Belief — one among three trusts at challenge within the New York case — had simply bought the company for $103 million.
The case is Paulson v. Paulson, 652358/2022, Supreme Courtroom of the State of New York, New York County (Manhattan).
–With help from Jim Weiss and Felipe Marquez.
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