Things are getting ugly between billionaire John Paulson and his business partner, Fahad Ghaffar.
After Ghaffar sued Paulson for $50 million this month – alleging fraud and breach of contract over an investment in an automaker – Paulson banned Ghaffar from the duo’s luxury properties in Puerto Rico, citing a video according to which Ghaffar’s lawyer declares a “smear campaign”. »
A memo sent by Paulson and top brass to all employees of his holding company PRv on September 13 – and seen by Page Six – accuses Ghaffar of “destructive and disrespectful behavior.”
The memo cites a video – which can be found on YouTube – of Ghaffar at the Serafina restaurant located at the La Concha Resort, owned by Paulson.
According to the memo: “In the video, Fahad, who appears to be in a highly intoxicated state, is seen breaking glasses, shoving employees, breaking and throwing chairs. »
The memo goes on to say: “This type of destructive and disrespectful behavior would not be tolerated from any customer, let alone someone with management responsibilities…Such reprehensible behavior, as demonstrated by Fahad, does not will be tolerated by anyone on our properties. »
The memo immediately prohibits Ghaffar “from using any of our restaurants, facilities or locations at the La Concha Hotel, Vanderbilt Hotel, Condado Beach Club, St. Regis Hotel and Bahia Beach Resort . Security at all properties has been informed.
Ghaffar’s attorney, Martin Russo, fired back, commenting to Page Six that this “is part of a smear campaign that Paulson launched in response to the securities fraud case.”
Russo also alleges that Paulson was previously aware of the video.
“It’s ridiculous,” Russo said. “Ghaffar was leading these entities after the video, without incident. This is an invented way of defaming him and it will be corrected. »
Page Six was unable to verify the date the video was taken.
The lawyer explained Ghaffar’s appearance in the video: “He threw a chair. People make mistakes.”
In Ghaffar’s previous lawsuit against Paulson, he claimed he invested $17 million in Paulson’s F40 automaker in 2022, which would be converted into a 50% stake, and that he had repeatedly requested the convertible note – a short-term debt deal that converts to equity at a later date – this reflected his stake.
Ghaffar said he received a letter from Paulson around August 18 saying he had been removed “from all positions within the F40.”
Ghaffar is suing Paulson for securities fraud, unjust enrichment in violation of Puerto Rico law, breach of contract, fraud, damages, violation of the Puerto Rico Uniform Securities Act, and constructive trust.
A spokesperson for Paulson’s PRv previously released a statement to Page Six, calling Ghaffar’s lawsuit a “baseless attempt to distract” from his alleged misconduct, and saying Paulson would file a counter-complaint.
Paulson, who became famous for shorting the real estate market in 2007, is also going through an acrimonious divorce with his wife who is seeking $1 billion.
New York Post