Once upon a time, Remy Trafelet wouldn’t think twice about flushing $4.1 million down the toilet. Back when his hedge fund was managing almost $6 billion, flying 100 staffers to Venice and putting them up in style seemed a reasonable thing to do. Since paying for those private gondola rides, however, things haven’t gone as well: The hedge fund almost went under during the financial crisis, and even after it reopened a few years ago, Trafelet is still slumming it as CEO of a Florida orange grower for $400K a year. Oh yea, and he’s getting divorced.
'The husband is in our view incredibly angry and litigious, and is pursuing a real scorched earth tactic,' said McPherson.
'He has pressed our client in any way he possibly can, and that exerts undue pressure on her. And it's engendered a lot of litigation and a lot of fees….
'From our view, the husband has made this far more difficult than it should be, and he shows no sign of stopping. He looks for every opportunity, it seems, to force more litigation.'
This all sounds like great fun. But it’s an awfully expensive hobby for a guy currently making six figures slinging citrus.
A top hedge fund manager locked in a $200million divorce battle has been forced to pay his wife a staggering $4.1 million in up front legal fees – and they're just getting started…. Until now, the largest sum awarded in professional fees was less than $1m….
'The court in this case recognized that high stakes, scorched earth litigation needs to be funded equally if not more,' said the source.