Dov Charney (allegedly) wreaked havoc on his fair share of lives both before and after his ouster from the t-shirt and leggings company he founded, American Apparel, with a special focus on those who worked for the company and the hedge fund he rather foolishly believed could save him from himself. Well, Papa Charney and others in Dov’s vastly-reduced orbit says that hedge fund, Standard General, is seeking to return the favor.
“The goal is to make Dov’s life miserable…” a source with knowledge of the case told The Post….
He’s so down on his luck, his dad told The Post, that he’s been living out of the LA Apparel warehouse in South-Central LA.
“Dov does not have his own address or bank account,” said the senior Charney in a phone interview.
“Dov is not having a normal life. I have told him it’s wrong. He is living the life of someone who has a judgment over his head,” said the dad
At issue is not the principle of turnabout is fair play, but Standard General’s malicious desire to get the $19.5 million it lent Charney at the start of their star-crossed relationship back. This is problematic because, as Charney père (and Charney himself) has made clear, he doesn’t have any assets, notably that $5.6 million house that he’s apparently not living in, possibly because it’s not really his anymore.
To get the house, Standard General is trying to prove that interests Charney’s transferred to others, including Fink, were fraudulent. It will claim the transfer to the lawyer, which occurred mere months after it sued him in 2015, was done to put the house out of its reach.
Charney is expected to argue that he deeded Fink an interest in the home in exchange for $3.7 million in legal work. Fink defended Charney during his American Apparel ouster and in his on-going cases against Standard General and was never properly paid, he’s said….
Charney’s 82 year-old uncle Moshe Safdie also has a lien against the Silver Lake house. But in investigating those ties, Kim’s lawyers have decided not to seek to unwind that transaction, sources said.
And for the balance of what it’s owed—which Standard General says has ballooned to $30 million including interest over the last six years—it’s got its eye on Charney’s sequel to American Apparel and current residence.
Kim’s lawyers are attempting to prove that Charney put his assets in other people’s names to wiggle out of payment. And they’re expected to question whether Morris Charney — who says he lost his pension when American Apparel went belly up — actually put any money down to fund LA Apparel, sources said. No evidence has been presented in the case so far to show that he has, sources told The Post.
But the elder Charney says he will prove them wrong. “They are going to be wasting their time. I’m the one who is really financing everything.”
He told The Post he pays his son a salary for running the day-to-day operations. And LA Apparel is making money, he said without providing specifics.
At least, it is until Standard General gets its hands on it.