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Breaking: Person Tries To Hide Assets From Estranged Spouse In Divorce Court

Highland Capital CEO James Dondero knows what we’re talking about.

Highland Capital Management LP Chief Executive Officer James Dondero testified in a divorce proceeding that he’s insolvent under Texas family law, if not according to normal accounting rules. Dondero, 49, told Texas state court Judge David Lopez in Dallas yesterday that the 2008 financial crisis took his debt- investing firm “to a state of insolvency and we’ve been juggling liquidity since that.” Highland Capital assets under management fell to $23 billion by Jan. 1 from $39 billion at the end of 2007. “The last three, four years have been negative to the tune of hundreds of millions of dollars,” Dondero said. The money manager said his annual income is “a million, two.”

[…]

Highland Capital Management LP Chief Executive Officer James Dondero testified in a divorce proceeding that he’s insolvent under Texas family law, if not according to normal accounting rules. Dondero, 49, told Texas state court Judge David Lopez in Dallas yesterday that the 2008 financial crisis took his debt- investing firm “to a state of insolvency and we’ve been juggling liquidity since that.” Highland Capital assets under management fell to $23 billion by Jan. 1 from $39 billion at the end of 2007. “The last three, four years have been negative to the tune of hundreds of millions of dollars,” Dondero said. The money manager said his annual income is “a million, two.”

Highland Capital Chief Tells Divorce Judge He’s Insolvent [Bloomberg]

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45 Responses to “Breaking: Person Tries To Hide Assets From Estranged Spouse In Divorce Court”

  1. Mark says:

    Lesson to be learned here. NEVER GET MARRIED!

  2. Brady Dougan says:

    Wait, I can use my firm's financial performance to offset some alimony payments? Genius!

  3. LiteBrite says:

    OHH the huge manatee!!

  4. The Jerk says:

    Just this ashtray. And this paddle game, the ashtray and the paddle game and that's all I need. And this remote control. The ashtray, the paddle game, and the remote control, and that's all I need. And these matches. The ashtray, and these matches, and the remote control and the paddle ball. And this lamp. The ashtray, this paddle game and the remote control and the lamp and that's all I need. And that's all I need too. I don't need one other thing, not one – I need this. The paddle game, and the chair, and the remote control, and the matches, for sure. And this. And that's all I need. The ashtray, the remote control, the paddle game, this magazine and the chair.

  5. guy from St. Elmo's says:

    NO SPRINGSTEEN is leaving this house

  6. Seer says:

    I see what you hid there…

    Guy who used to build CDOs a few years back.

  7. Sean says:

    So good had to say it twice

  8. TSS says:

    Bloomberg's profile of him made him sound like he is a super successful guy.
    He could always sell his giraffe rug to raise some cash….

  9. Guest says:

    Call in Gloria ALRED bro-

  10. how do i join? says:

    Is this the same Highland Capital that keeps posting job ads on db for “people who are serious about relocating to Texas”?

  11. Concrete Truth says:

    None of you man-haters are asking the reason for why Mr. Dondero is not willing to settle quietly, give Lovely Becky her pittance payment & be done with her? Why? Why go through all this, really?!!!

    Answer: A wife violated her prenuptial so many times, and in such wild abandon that you can't see straight, but are still paying her massive fun-time hotel, bar and crazy underwear bills from last summer.

    Curious about her two little daughters???! They were abandoned for over a month. Mom, really?

    Back off you Jim-haters
    There is a LOT more to this than you casual money people know. Jeez.

    • acetrader says:

      Concrete Truth aka little man who work for mr. D. bottom line, bottom is that in the court of public opinion he did well over 5mm in damage to his firm/rep than paying the wife of his children.

      • Concrete Truth says:

        I COMPLETELY AGREE WITH YOU.

        Obviously, Mr. Dondero's lawyer is not 'a friend' or even a respectable attorney. This tactical maneuver may have "felt good" therapeutically during a heated "I want revenge because she hurt me" conversation, but should never have been taken by his atty before the judge.

        Trustworthy attorneys look out for their clients and would never advise such self sabotage; unless they were enjoying the accumulation of easy fees & anticipating great returns for many, many months (and years?) to come. Nice.

  12. Ex-Dallas Person says:

    I heard this guy one time got engaged to an employee of highland in order to get her to quit so he could break up with her an not face any potential sexual harassment issues for sleeping with an employee.

    • Leslie says:

      I remember her. She was a heavyset blonde girl that everyone thought was fatal attraction psycho. Poor girl never married or had children and is an old maid in Austin

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  30. JailforJim says:

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  36. anon says:

    well the big d is a punchline up here in the big city slade

  37. Geezer Fan says:

    No offense but there's only one commenter I trust when it comes to cultural norms down in Texas.

    -GeezerOilTrader fan

  38. Whoops says:

    No love for Texashedge?

  39. TheJokeBriefer says:

    "Texashedge" is, of course, the moniker for a really bad practice that some Texas based oil and gas companies used to perform in all seriousness.

    A "Texas hedge" was where a producer, having already sold, or hedged forward production, would suddenly come to the conclusion that the forward sale might have been in haste perhaps because of a rising market that would make the hedges look bad on the books in a "non-cash" way. Your Joke Briefer has learned that in the oil and gas business it is a greater sin to leave money on the table than to lose it.

    So that producer would enter the energy markets and buy an equal amount that had been sold prior "as a hedge" aginst rising prices. As a result of such common rocket science thinking among oil and gas producers back in the day, the gold testicled folks at Goldman Sachs used to comment that the energy business destroyed more capital than any other business. The "Texas Hedge" was one way that happened. That is, of course, until 2008.

    Suggested readings:

    1. " It's Got to Come Back! – The History of Dumbass Oil Trading Practices", Kivisto Press.

    2. "You Fuckers! – Growth of Paribas' Letter of Credit Business in Texas 1980 – 1989", Penn Square Press.

    3. "Don't Mess With Texas" – Investment Banking in Texas Energy Capital Markets 1984 to 2001" Yamani Publishing, London.

  40. buboe says:

    E. Texas Gas Trader?