Lawsuits

A year ago this August, we noted that a brow-beaten Falcone, on a time out from the securities industry and putting out fires daily with regard to his passion project, LightSquared, was just going to start suing everyone. Which he kind of has! In the last 11 months alone, the hedge fund manager has filed lawsuits against: Read more »

Philip Falcone’s Harbinger Capital Partners is again suing Dish Network Corp. DISH +0.78% and Chairman Charlie Ergen, this time under the federal racketeering statute. Harbinger is suing both Mr. Ergen and Dish for at least $1.5 billion, saying Mr. Ergen violated the Racketeer Influenced and Corrupt Organizations Act when he acquired the debt of LightSquared—the wireless venture controlled by Harbinger—as Dish was making a bid for the company. Harbinger says Mr. Ergen’s purchases caused it to lose money and control of the LightSquared board. Mr. Falcone and other Harbinger officials resigned from the board as part of negotiations for a bankruptcy court restructuring. “Ergen and his fellow RICO Enterprise members pursued their abusive scheme through wire, mail and bankruptcy fraud, abuse of process, tortious interference with contract, and obstruction of justice,” Harbinger lawyers said in a filing with U.S. District Court in Colorado. Under RICO, originally designed to prosecute organized crime, parties can seek more damages than is typically allowed. [WSJ, related]

Barry Diller sure must be a forgiving guy. Sean Rad, 27, is sitting pretty as Tinder’s chief executive despite allegedly describing his boss, IAC/InterActiveCorp Chairman Diller, as a d–k and texting a drawing of Diller as such, The Post has learned. Word of the penis put-down emerged this week in an explosive lawsuit filed by Whitney Wolfe, a 24-year-old former Tinder exec who says she was sexually harassed by Rad and fellow co-founder Justin Mateen. [NYP]

Once upon a time, an Aussie named Robert Bou-Simon worked at London brokerage BGC Partners. In 2005, he left the firm to explore his options elsewhere, and in 2012, rejoined as the head of the basis swaps desk. This time, though, things were different. None of his old buddies were there. There were new names to learn and new faces to remember. Even though he’d worked at BGC for the better half a decade in the early 2000s, people treated him like he was the new guy, and, as the new guy, expected him to take part in a sort of wet t-shirt “initiation” exercise taken very seriously by the staff, who bristled at the idea of someone electing to take a pass, which is where things started to go south for Bou-Simon. Read more »

…and could potentially even get a group rate, between the octogenarian who thinks “By the way, I gave your apartment to another woman” is appropriate pillow talk and this guy: Read more »

As those of you who keep close tabs on the trials and travails of La Familia Falcone know, one of the biggest mistakes Phil made in the last several years was the time he borrowed $113 million from a gated investor fund to cover personal taxes, for which he had failed to set aside enough cash. Falcone learned the hard way that clients don’t take kindly to these sorts of things– even if you pay them back, with interest– and that the Securities and Exchange Commission doesn’t either. Point taken, all that jazz. In retrospect, it might even make sense to Phil re: why people got upset. Having said that, there is no way he, or anyone for that matter, could have predicted anyone would get their panties in a twist over this: Read more »

  • 20 Feb 2014 at 1:23 PM

Martin Scorsese Goes Too Far

Back in December, a movie called the Wolf of Wall Street was released on the big screen. Perhaps you’ve heard of it? It was based on a book by the same name, penned by a man named Jordan Belfort while he was doing time for ripping off thousands of people via his boiler room operation, Stratton Oakmont. And while Belfort himself has offered glowing reviews of the film and the lengths Leonardo DiCaprio went to really capture his hooker-banging, Quaalude-snort essence, one man is not as pleased.

Andrew Greene is suing Paramount Pictures and others associated with the film, arguing that he…was unfairly depicted as morally bankrupt by actor P.J. Byrne. “The motion picture contains various scenes wherein Mr. Greene’s character is portrayed as a criminal, drug user, degenerate and/or devoid of any morality or ethics,” the suit states. “The motion picture’s scenes concerning Mr. Greene were false, defamatory, and fundamentally injurious to Mr. Greene’s professional reputation, both as an attorney and as an investment banker/venture capitalist, as well as his personal reputation.” Greene’s lawyer, Aaron Goldsmith, said Greene was actually one of the few responsible workers at the now-infamous stock firm for which he and Belfort worked. “Andrew Greene worked diligently to create an environment of regulatory compliance and oversight at Stratton Oakmont,” said Goldsmith, who is handling Greene’s case with lawyer Stephanie Ovadia. “He was the driving force behind the implementation of several such procedures.”

Whether these procedures were successful or not is beside the point. Also beside the point are Greene’s complaints about being a degenerate. If Scorsese wanted to portray him as such for entertainment value, fine. That’s his prerogative as a filmmaker and really, what can be said about a man’s professional reputation that has not already been said by having the title “Chief Compliance Officer” and “Stratton Oakmont” on his resumé? But when Martin Scorsese made the decision to make a mockery of Greene’s toupée, in not one but several scenes, he went too far. Much too far. Read more »