Modern Orthodox mining billionaire Ira Rennert looted his bankrupt magnesium mining corporation as it teetered on the brink of insolvency in the late 1990s and will have to repay at least $118.2 million in damages and what could be hundreds of millions of additional dollars in interest.
Above: Ira Rennert
Modern Orthodox Billionaire Looted His Mining Company, Federal Jury Finds
Shmarya Rosenberg • FailedMessiah.com
Modern Orthodox mining billionaire Ira Rennert looted his bankrupt magnesium mining corporation as it teetered on the brink of insolvency in the late 1990s and will have to repay at least $118.2 million in damages and what could be hundreds of millions of additional dollars in interest, a federal court jury in Manhattan ruled Friday, the New York Post reported.
About $41 million of that looted cash was used by the now 80-year old Rennert to build his 62,000 square foot, 29-bedroom, 39-bath Hamptons estate, at the time the largest private home in the country.
The jury awarded creditors of Rennert’s Magnesium Corporation of America, commonly known as MagCorp, almost the exact amount the company’s bankruptcy trustee sought. If the interest calculation, which has yet to be made by the court, follows the trustee’s, Rennert would be on the hook for about $700 million.
“We are disappointed by today’s result. Clearly, the jury was swayed by a passionate, but wholly unsupported, argument by trustee’s counsel. The evidence unambiguously showed that the MagCorp’s bankruptcy was caused by the economic downturn and the illegal dumping of magnesium by China,” Rennert’s holding company, Renco, reportedly said in a statement.
Only hours after the verdict, Rennert’s legal team claimed to have discovered discrepancies in the jury’s decision – that MagCorp was solvent and that Rennert did nothing wrong, on one hand, and that Rennert is liable for fraudulent conveyance and resulting damages, on the other –
which Rennert’s lawyers said could get the verdict thrown out.
The trustee’s attorneys reportedly disputed that and said the verdict would stand.
Modern Orthodox Billionaire Allegedly Looted Mining Company.
[Hat Tip: The Lion.]