Harvey Weinstein is about to go to trial once more in New York Metropolis for rape in April, nevertheless within the meantime, the incarcerated former producer is lashing out legally at his brother Bob Weinstein and former COO David Glasser over an previous $45 million mortgage that was supposed to avoid wasting The Weinstein Firm in 2016.
In search of a self-described “claw again of any improperly appropriated or ailing gained belongings and/or financial sums taken by Third-Occasion Defendants” and different damages, Weinstein’s submitting is “an motion for fraud arising from the Defendants’ inducement of Weinstein to signal as a private guarantor for a $45 million enterprise mortgage from AI Worldwide Holdings (BVI) Restricted to TWC Borrower 2016, LLC, which the Defendants then pilfered and misappropriated for their very own makes use of and advantages, in blatant violation of the mortgage’s meant goal, wrongfully leaving Weinstein solely responsible for reimbursement when AI Worldwide, because the lender, sought to implement the assure.”
Which is a flowery means of claiming Harvey Weinstein believes Bob Weinstein, now Studio 101 boss Glasser, accountant Irwin Reiter and virtually a dozen John Doe and Jane Doe defendants screwed him and left him holding the bag whereas they made off with tens of millions. “This mismanagement left the Firms unable to fulfill their monetary obligations, leading to insolvency and inserting Weinstein at substantial private monetary danger because the guarantor of the Mortgage,” the February 13 jury trial submitting in New York state courtroom declares.
The 22-page doc comprises alleged examples of Glasser paying out $1 million to his father plus $5 million in bonuses and Bob Weinstein snagging $6 million from TWC accounts for his personal use. On the heart of the intensive intercourse crimes revelations that introduced Weinstein down in 2017, Reiter receives particular bile within the submitting as he’s accused of intentionally failing “to take motion to stop or report the self-dealing and misappropriations that contributed to Firms’ insolvency.”
“It was surprising to find the fraudulent transactions that went on to get me out of the corporate,” the a lot accused Weinstein mentioned in an announcement Monday to Deadline. “I imagine that plenty of these executives performed an enormous half in my demise.” Or, because the grievance states:
The Firms’ money deficit and incapability to fulfill the Mortgage triggered settlement negotiations with AI Worldwide, which Robert and Glasser performed with fraudulent and disloyal intentions. Third-Occasion Defendants reached a self-serving settlement with AI Worldwide to settle the debt for a considerably discounted cost of roughly $15 million. Below this settlement, Third-Occasion Defendants secured a launch from legal responsibility for the Mortgage whereas deliberately leaving Weinstein uncovered to the total stability of the Mortgage— roughly $30 million plus curiosity—to compensate for the diminished cost.
Third-Occasion Defendants, performing individually and in live performance, knowingly and fraudulently induced Weinstein to personally assure the Mortgage by misrepresenting the meant use of the funds as being for respectable functions associated to the Firms.
Bob Weinstein’s legal professional Brian Kohn mentioned in an announcement on February 14 that “Harvey’s allegations are fully with out advantage.” Yellowstone govt producer David Glasser didn’t reply to request for touch upon the newest submitting within the sordid Weinstein saga.
Nevertheless, if a few of this sounds acquainted, it’s. Wrapped up within the messy Lantern Capital $299 million buy of the stays of TWC, virtually all of this was extinguished in 2018. A state of affairs that imply most of it is going to possible be challenged inside weeks in courtroom by attorneys for Bob Weinstein, Glasser and others.
Sitting in a cell in Rikers Island watching motion pictures and reveals on his cellphone (I’m instructed), the customarily ailing 72-year-old Weinstein is scheduled to start out his retrial on April 15 on his 23-year sentence from his 2020 rape conviction, which was tossed out in 2024, and one rely of Prison Sexual Act within the First Diploma, which was added to the indictment final September. Despite the fact that a 4-3 panel of New York appeals courtroom judges dismissed the 2020 conviction final April on the grounds prosecutors had erred by permitting the testimony of different Weinstein accusers whose claims weren’t being tried, the producer stays behind bars due to his 2022 conviction in Los Angeles on intercourse crimes and sentencing to 16 years, which is now additionally beneath attraction.
On the West Coast, Weinstein noticed a sudden change of fortune earlier this month when a Jane Doe whose 2013 rape claims in opposition to the producer contributed to his L.A. legal conviction dropped her civil case. Simply weeks earlier than the matter was to go to trial on March 24, Doe’s attorneys requested L.A. Superior Court docket Choose Elaine W. Mandel on February 4 to dismiss the sexual battery, false imprisonment, negligence and intentional infliction of emotional misery case with out prejudice.
Although which means the matter isn’t completely useless and may very well be refiled, Weinstein’s L.A. authorized workforce took the stance that this was over and completed. “JD#1’s authorized workforce dropped her civil case to keep away from exposing exculpatory proof essential to Harvey’s attraction and doable retrial,” they mentioned in an announcement to Deadline. “This transfer was a calculated effort to protect damaging truths that everyone knows wouldn’t assist solidify her narrative.”
The place this all goes subsequent, on both coast and with Weinstein’s ongoing $5 million go well with in opposition to New York over “deplorable” situations at Rikers, is anybody’s guess.
