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 prices in New York.
“Harvey Weinstein was deceived by these closest to him, and secured a $45 million greenback mortgage underneath the pretense of saving The Weinstein Firm,” Imran Ansari, Harvey Weinstein’s lawyer, mentioned in an announcement. “Whereas Harvey personally assured the mortgage, others inside The Weinstein Firm enriched themselves and strategically undermined him, leaving him ‘holding the bag’ of debt whereas ‘lining their pockets’ when the corporate was in disaster.”
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 and 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 quick assertion Friday saying, “Harvey’s allegations are totally with out advantage,” in an e-mail to The Related Press.
Former Weinstein Co. chief working officer David Glasser, now chief govt of 101 Studios, identified for its manufacturing of Paramount’s in style sequence “Yellowstone,” can also be named in Harvey Weinstein’s lawsuit.
He didn’t instantly return a cellphone 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 mentioned 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 thousands and thousands of {dollars} from the corporate for improper functions, leaving it quick on money and Harvey Weinstein responsible for repaying the mortgage.
“As a direct results of these actions, the Firms had been drained of, on the very least, $12 million in money that ought to have been allotted to repay the Mortgage owed to AI Worldwide,” the lawsuit says. “This mismanagement left the Firms unable to fulfill their monetary obligations, leading to insolvency and inserting Weinstein at substantial private monetary threat because the guarantor of the Mortgage.”
The lawsuit, filed within the state Supreme Courtroom in Manhattan, says Weinstein was made to endure “extreme and outrageous monetary and reputational hurt.”
It additionally makes a number of allegations of economic misconduct towards Bob Weinstein, Glasser and others.
It accuses Bob Weinstein of withdrawing no less than $6 million from firm accounts underneath false pretenses, to offer himself precedence over collectors together with AI Worldwide.
“It was surprising to find the fraudulent transactions that went on after I left the corporate. I now consider that quite a few these executives performed a giant half in my demise,” Harvey Weinstein mentioned in an announcement supplied by a spokesperson.
The lawsuit alleges Glasser authorized and obtained $5 million in extreme bonuses and unauthorized monetary transactions, and used firm funds to pay his father $1 million regardless of no reliable enterprise motive.
AI Worldwide Holdings sued Harvey Weinstein and the 2 associates of The Weinstein Co. in late 2017.
The lawsuit mentioned they defaulted on the mortgage after AI Worldwide had ordered the whole stability to be paid instantly as a result of Harvey Weinstein had been dismissed as co-chairman amid the sexual misconduct allegations.
In line with Harvey Weinstein, Bob Weinstein and Glasser settled their legal responsibility for the mortgage with AI Worldwide for about $15 million because of “dangerous religion negotiations,” leaving Harvey Weinstein answerable 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 not too long ago requested the choose 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 one of the highly effective folks in Hollywood, having produced movies reminiscent of “Pulp Fiction” and “The Crying Sport.”
In 2017, he turned essentially the most distinguished villain of the #MeToo motion, which erupted when ladies started going public with accounts of his habits.
He has lengthy maintained that any sexual exercise was consensual.
Harvey Weinstein is being retried on prices 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 compelled oral intercourse on a special girl at a Manhattan resort in 2006.
His 2020 conviction and 23-year jail sentence had been overturned final 12 months, as an appeals courtroom discovered the trial choose unfairly allowed testimony towards Weinstein primarily based on allegations that weren’t a part of the case.
