Despite his ongoing legal issues, Harvey Weinstein is launching a new court battle over the multi-million-dollar loan he signed in in 2016.
The lawsuit was filed Thursday against brother Robert and other business associates on New York County Supreme Court awaiting a retrial of the 2020 rape conviction, according to court documents obtained by USA Today. .
In a 22-page complaint, Weinstein alleges that Robert of Weinstein Company and his associates committed fraud after becoming guarantors on a $45 million loan from AI International Holdings (BVI) Limited. I’m doing it. The Oscar-winning producer claims that the funds from the loan were “stolen and misappropriated for his own use and profits in a blatant violation of the intended purpose of the loan.”
Co-founded by Weinstein Brothers in 2005, Weinstein Inc. helped produce box office hits such as “Django Unchained”, “Silver Linings Playbook”, “Inglourious Basterds”, and “Paddington” independent film production and distribution. It was the company. “The company filed for bankruptcy in 2018 after numerous allegations of sexual harassment and rape were filed against Weinstein.
In addition to his younger brother Robert, Weinstein is suing Weinstein associates David Glasser, Irwin Reiter and 10 John and Jane groups. Glasser served as Chief Operating Officer, and Reiter served as Executive Vice President of Accounting and Financial Reporting.
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Weinstein, who was liable for “repayment” on the loan, seeks compensation and punitive damages as well as injunctive relief as determined in court.
The lawsuit comes just three months after Weinstein and his legal team filed a $5 million claim notice against officials at Rikers Island Correctional Facility, Bellevue Hospital and New York City, and the film industry. denies moguls’s patients of negligence while attending various health issues. In detention.
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Harvey Weinstein claims that the 2016 loan was misused for “personal purposes”
According to Weinstein’s lawsuit, the film producer’s brother and business partners had a history of misusing the company’s funds, including a 2016 loan from AI International.
The funds from the $45 million advance are reportedly designated “for “legal business purposes” that are essential to Weinstein’s business, but Weinstein said that the loans were “important.” It claims that “parts” were used instead to pay for fraudulent and personal purposes, including bonuses. , unrelated business ventures, and personal expenses. ”
Citing past financial records, Weinstein said that between August 2017 and February 2018, “despite the financial issues and outstanding ‘debt obligations’,” and that “Wine” was a statement from Robert Weinstein. “We have withdrawn or receive at least $2.2 million in personal advancements and loans from Stein Company Holdings LLC.”
“These selfish financial extractions took place while creditors, including AI International, remained unpaid and businesses faced imminent collapse,” the lawsuit states. “The timing and patterns of these payments indicate a willful disregard for financial liability and support allegations of fraudulent incentives and misappropriation.”
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Weinstein has condemned Glasser and Writer for similar financial misconduct in the complaint. Glasser is said to be “engaged in a self-rich, systematic pattern.”
Meanwhile, the writer, who is said to have regular access to financial records in his position, is said to have failed to prevent “self-dealing and misappropriation” of the loan fund.
The defendant “incorrectly diverted loan funds for his own interests, misappropriated them, engaged in a deliberate scheme that would prevent the company from financially ejecting them and fulfilling its obligations,” the lawsuit states. .
Lawyers for Robert Weinstein, Glasser and Writer were not allowed to comment at the time of publication.
Harvey Weinstein calls the brothers’ loan settlement “self-service agreement.”
Weinstein Co.’s inability to pay the AI international loan led to settlement negotiations between Robert Weinstein and Glasser-led company.
Weinstein claimed in his lawsuit that the settlement was “conducted with fraudulent and dishonest intentions” that it was financially liable for a total of about $30 million (including interest) on the loan. It’s.
The defendant “reached a selfish contract with AI International and settled his debts with a massive discount of about $15 million,” the lawsuit states. “Under this settlement, the third-party defendant has purposely left Weinstein exposed to the entire remainder of the loan while securing release from loan liability.”
Weinstein is filing a continuing lawsuit with AI International in another lawsuit after filing a complaint that the company attempts to hold them liable for repayment of the loan.
“Weinstein was incorrectly liable for repayment of the loan if AI International requested payment,” the lawsuit concludes. “The defendant’s misconduct caused serious financial damages to Weinstein and the harm to his reputation resulting from reckless and illegal conduct.”
Contributions: Andrea Mandel, Kimmi Robinson, Taiwan Muolman, USA Today