Jailed and disgraced film mogul Harvey Weinstein alleges in a brand new lawsuit that his brother, Bob Weinstein, and different executives at their now-defunct movie firm duped him into guaranteeing a $45 million mortgage in 2016, however diverted funds for their very own private use whereas setting the stage for his downfall.
Harvey Weinstein, 72, filed the claims Thursday in a long-running civil case in New York Metropolis involving a lender accusing him of defaulting on the mortgage.
He’s presently detained whereas awaiting a retrial on intercourse crimes fees in New York.
“Harvey Weinstein was deceived by those closest to him, and secured a $45 million dollar loan under the pretense of saving The Weinstein Company,” Imran Ansari, Harvey Weinstein’s lawyer, stated in a press release. “While Harvey personally guaranteed the loan, others within The Weinstein Company enriched themselves and strategically undermined him, leaving him ‘holding the bag’ of debt while ‘lining their pockets’ when the company was in crisis.”
Ansari alleged Bob Weinstein and others at The Weinstein Co. had been in on a plot to place Harvey Weinstein for a downfall in an try to seize management of the corporate, which went bankrupt in 2018 because the sexual misconduct scandal surrounding Harvey Weinstein exploded.
An legal professional for Bob Weinstein, Brian Kohn, replied with a short assertion Friday saying, “Harvey’s allegations are entirely without merit,” in an e-mail to The Related Press.
Former Weinstein Co. chief working officer David Glasser, now chief govt of 101 Studios, recognized for its manufacturing of Paramount’s common collection “Yellowstone,” can also be named in Harvey Weinstein’s lawsuit.
He didn’t instantly return a telephone message left at his workplace Friday.
AI Worldwide Holdings loaned the cash to 2 associates of The Weinstein Co. and Harvey Weinstein, and later sued when it stated they defaulted.
Harvey Weinstein alleges that his brother, Glasser and others duped him into guaranteeing the $45 million mortgage by saying the cash would assist the financially struggling firm.
As an alternative, his lawsuit says, they diverted tens of millions of {dollars} from the corporate for improper functions, leaving it brief on money and Harvey Weinstein responsible for repaying the mortgage.
“As a direct result of these actions, the Companies were drained of, at the very least, $12 million in cash that should have been allocated to repay the Loan owed to AI International,” the lawsuit says. “This mismanagement left the Companies unable to satisfy their financial obligations, resulting in insolvency and placing Weinstein at substantial personal financial risk as the guarantor of the Loan.”
The lawsuit, filed within the state Supreme Courtroom in Manhattan, says Weinstein was made to undergo “severe and outrageous financial and reputational harm.”
It additionally makes a number of allegations of monetary misconduct towards Bob Weinstein, Glasser and others.
It accuses Bob Weinstein of withdrawing a minimum of $6 million from firm accounts below false pretenses, to offer himself precedence over collectors together with AI Worldwide.
“It was shocking to discover the fraudulent transactions that went on after I left the company. I now believe that a number of these executives played a big part in my demise,” Harvey Weinstein stated in a press release offered by a spokesperson.
The lawsuit alleges Glasser authorised and acquired $5 million in extreme bonuses and unauthorized monetary transactions, and used firm funds to pay his father $1 million regardless of no authentic enterprise cause.
AI Worldwide Holdings sued Harvey Weinstein and the 2 associates of The Weinstein Co. in late 2017.
The lawsuit stated they defaulted on the mortgage after AI Worldwide had ordered your complete stability to be paid instantly as a result of Harvey Weinstein had been dismissed as co-chairman amid the sexual misconduct allegations.
In accordance with Harvey Weinstein, Bob Weinstein and Glasser settled their legal responsibility for the mortgage with AI Worldwide for about $15 million attributable to “bad faith negotiations,” leaving Harvey Weinstein accountable for the remaining $30 million plus curiosity.
Harvey Weinstein’s lawsuit seeks to protect him from any monetary legal responsibility for the mortgage, in addition to punitive damages for alleged fraud and monetary misconduct and his authorized charges.
Bob Weinstein lately requested the decide to reject subpoenas for paperwork and a deposition issued by Harvey Weinstein’s lawyer.
Harvey Weinstein, who additionally co-founded the movie firm Miramax, was as soon as some of the highly effective individuals in Hollywood, having produced movies equivalent to “Pulp Fiction” and “The Crying Game.”
In 2017, he turned probably the most distinguished villain of the #MeToo motion, which erupted when girls started going public with accounts of his conduct.
He has lengthy maintained that any sexual exercise was consensual.
Harvey Weinstein is being retried on fees that he forcibly carried out oral intercourse on a film and TV manufacturing assistant in 2006 and raped an aspiring actor in 2013.
One other cost filed in September alleges he pressured oral intercourse on a special lady at a Manhattan resort in 2006.
His 2020 conviction and 23-year jail sentence had been overturned final yr, as an appeals court docket discovered the trial decide unfairly allowed testimony towards Weinstein primarily based on allegations that weren’t a part of the case.
