Disputes between neighbors have a tendency to take on a life of their own, to grow out of all proportion to the disagreement at their heart. This is especially true of very rich neighbors, where even relatively piddling matters seem to proceed directly to harassment, property destruction and litigation.

And so it is with discount Canadian fashion mogul Peter Nygard and American hedge fund mogul Louis Bacon. What began as a tiff over a driveway in the tony Bahamas enclave of Lyford Cay (one that was actually settled seven years ago) exploded into a full-on blood feud adorned with allegations of military-grade speakers, arson, insider-trading and attempted murder. Nygard allegedly used his resources to slander Bacon all over the Bahamas, accusing him of Ku Klux Klan membership, running an international narcotics ring and killing his groundskeeper. This would all be well and good and possibly even successful—Bacon did eventually put his Lyford home on the market, although he claims Nygard’s reputation made it unsellable—if one has lived a more-or-less blameless life oneself. But two rich guys can play at that game, and Bacon began to deploy his resources not only on suing Nygard to the brink of prison in the Bahamas, but also to look into those unsavory rumors about Nygard’s alleged sex trafficking among the underage (a common pursuit among rich guys with island getaways, apparently). And so, today Bacon woke up in his comfortable bed in Manhattan, London, Oyster Bay, his private island off the Hamptons, his colossal ranch in Colorado, his ski resort in New Mexico, his ancestral plantation in North Carolina, his hunting estate in Scotland or, indeed, at his home overlooking Nygard’s in Lyford, while Nygard awoke to somewhat different circumstances.

Mr. Nygard, 79, used his company’s influence, its money and its employees to recruit adult and “minor-aged female victims” over a 25-year period for the sexual gratification of him and his associates, according to a nine-count federal indictment. He was arrested in Winnipeg, Manitoba, on Monday at the request of the United States under an extradition treaty, the U.S. attorney’s office in Manhattan said. He is now being held in a Manitoba jail…. A court affidavit by the Canadian authorities filed in Winnipeg said that Mr. Nygard’s victims included girls aged 14 to 17, and that his criminal conduct had affected hundreds. It described “techniques of psychological control” in which victims were “constantly surveilled” and had “little to no control over their ability to leave premises without Nygard’s permission.”

Fashion Mogul Peter Nygard Indicted on Sex-Trafficking Charges [NYT]

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