Friedman & Friedman PLLC, Attorneys at Law Articles New York Divorce Racketeering Case Dismissed

New York Divorce Racketeering Case Dismissed

By The Law Offices of Sari M. Friedman  Apr. 6, 2011 1:53p

Former Wife Of Hedge Fund Founder Accuses Him Of Divorce Fraud

A U.S. District Court Judge ruled to dismiss a case by the ex-wife of a wealthy investor, saying the suit was a repetition of a previous failed claim she had brought.

The contentious divorce occurred in the early 1990s, when the wealthy couple split up and divided their assets between themselves. According to the claim filed by the ex-wife, her husband founded the successful hedge fund SAC Trading, using part of the $1 million she raised from her successful real estate business. Therefore, she is entitled to half of the assets from the business, which should have gone to her in their divorce. She claims, however, that her husband obscured the value of the trading company, hiding assets in order to prevent her from receiving her fair share in the settlement.

The stated value of their marital assets was $17 million after their divorce proceedings ended, with the wife receiving a settlement of $3.5 million. Shortly after the settlement, however, her ex-husband re-founded SAC Trading as SAC Capital Advisors in 1992 with $25 million seemingly conjured out of thin air, she argues in her claim.

The judge, however, ruled that she took too long to bring this claim before the court, wondering why she had waited until 2009 to file the suit. She had also made the exact same claims during their divorce proceedings and had had them dismissed, and did not provide any substantial new evidence in this new filing. He has barred her from re-filing the same complaint.

The hedge fund, SAC Capital Advisors LP, is currently managing an estimated $14 billion.

Seek A Divorce Attorney

Undergoing a divorce is an extremely traumatic experience and can be severely emotionally draining. In addition to this difficulty, the couple’s finances must be dealt with, which is never an easy process. New York is an equitable distribution state, meaning that parties involved may seek shares in specific assets in an attempt to ensure that the property will be divided equitably. This process is extremely complex and fraught with difficulty. With the help of a trained New York family law attorney like Sari M. Friedman, you can navigate this complex procedure with ease.

Please contact a New York divorce lawyer to discuss your options right away!

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