Billionaire investor Ira Rennert failed to persuade a federal judge
to throw out a jury verdict finding him liable for looting his
now-defunct magnesium company to build one of the country’s most
expensive homes, on the east end of Long Island, New York.
U.S.
District Judge Alison Nathan in Manhattan on Thursday upheld all but $1
million of a $214 million award against the mining mogul and his holding
company Renco Group Inc, and in favor of the trustee for bankrupt
Magnesium
Corp of America.
Rennert, 81, is worth $6.1 billion, according to Forbes magazine.
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| The Massive Estate of Billionaire Ira Rennert In The Hamptons |
A Manhattan jury in February found Rennert and Renco liable for $118
million to the bankruptcy estate of Magnesium Corp, known as MagCorp,
which sought protection from creditors in 2001.
Nathan later added $96 million of interest, calculated at 6 percent a year from 2001, court records show.
In Thursday’s decision, Nathan rejected Rennert’s argument that the
jury rendered an improper “compromise” verdict that did not reflect the
facts or law they were supposed to consider.
“The court has every
confidence that the jurors undertook their task with fidelity to the
court’s instructions,” the judge wrote.
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| Another Angle Of The Now Estimated $500 Million Mansion of Billionaire Ira Rennert |
Nathan did throw out a $1
million punitive damages award because it was not available under
applicable Delaware law, and also dismissed an unjust enrichment claim.
She dismissed family trusts set up by Rennert from the case because that
was the only claim on which they were found liable.
Renco and Rennert are expected to appeal.
“A jury ruled MagCorp was solvent in every legal sense and that Mr.
Rennert acted in good faith,” Renco said in a statement. “The finding of
liability is so obviously inconsistent with the jury’s own ruling on
the facts.”
Lee Buchwald, the Magnesium Corp trustee, had sought 9
percent interest, and an overall award of nearly $700 million to help
repay creditors.
His lawyers had argued at trial that Rennert
diverted money from Magnesium Corp to help fund construction of his
43,000-square-foot mansion with 21 bedrooms and 18 bathrooms on 65
oceanfront acres in Sagaponack, New York.
As of June 29, that property was valued at $248.5 million, according to the Town of Southampton assessment roll.
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| Ira Rennert Mega Mansion From The Back |
