One of the most impressive luxury homes featured on The Pinnacle List is quite possibly Ira Rennert’s enourmous Hamptons Mansion. It has climbed to a value of $248 million, since our first reporting of $200 million on February 1, 2013, but was the original money invested in constructing this home part of one big underhanded scheme?
As reported by the New York Post today, it looks like the fortunes that were invested into Rennert’s Hamptons Mansion located in Sagaponack, New York could be that of $100 million looted by Rennert himself from his now-bankrupt minerals company MagCorp.
As a result, the reclusive Rennert was forced to testify in Manhattan federal court today over allegations that he indeed did loot his own company and used the cash to finance construction of his now infamous estate in the Hamptons.
The trustee, Lee Buchwald, claims Rennert took more than $100 million in dividends in 1996 and 1998 — leaving the company too weak to survive. It went bankrupt in 2001.
According to Forbes as of this writing, Rennert is worth $6.3 billion, but it’s not Rennert’s personal fortune that Buchwald is after. He’s seeking $600 million from Rennert’s Renco Group – one of the largest privately held companies in New York.
Rennert denies the charges. He claims that the 2001 recession is what forced MagCorp into bankruptcy.