Did Modern Orthodox billionaire Ira Rennert loot one of his mining companies? A jury in a Manhattan federal court is poised to answer that question, and that answer could cost Rennert almost $1 billion.
Above: Ira Rennert
Modern Orthodox Billionaire Allegedly Looted Mining Company
Shmarya Rosenberg • FailedMessiah.com
Did Modern Orthodox billionaire Ira Rennert loot one of his mining companies?
Renco, Rennert’s primary business, is accused of taking $118 million in dividends from Rennert-owned Magnesium Corporation of America as Magnesium Corporation was teetering on the edge of bankruptcy in the 1990s.
The 80-year-old Rennert claims Magnesium Corporation was solvent and only entered bankruptcy later, after a downturn.
But the New York Post reports that the bankruptcy trustee for Magnesium Corporation’s creditors is demanding Rennert return about $700 million (including interest) he says Rennert looted from Magnesium Corporation.
The trustee also claims Rennert used some of that looted money to buy 63 acres of über expensive Hamptons, Long Island real estate and build himself a 29-bedroom 39-bath mansion – the largest private home in America.
One of Magnesium Corporation’s largest creditors is the US Environmental Protection Agency (EPA). It sued Magnesium Corporation in 2001 over alleged mishandling of hazardous waste – a problem Rennert-owned mining companies have had before. The EPA is reportedly asking for $900 million.
After hearing a month of testimony, a federal jury began its deliberations yesterday and reportedly could return a verdict this week.
Forbes estimates Rennert’s net worth at $6.1 billion. Rennert is a member of the Fifth Avenue Synagogue and is a large donor to Yeshiva University. His family has also donated more than 150 Torah scrolls to communities across Israel and is a major donor to the Western Wall [Kotel] Heritage Foundation.
Renco bought Magnesium Corporation (MagCorp) out of bankruptcy in 2002, and renamed it US Magnesium.
Modern Orthodox Billionaire To Be Sued By Thousands Of Peruvian Kids Said Poisoned By His Mining Operations.
[Hat Tip: The Lion.]