Things are getting nasty between billionaire John Paulson and his business partner, Fahad Ghaffar.
After Ghaffar sued Paulson for $50 million this month — claiming fraud and breach of contract over an investment in a car company — Paulson has banned Ghaffar from the duo’s luxury properties in Puerto Rico, citing a video that Ghaffar’s lawyer is declaring a “smear campaign.”
A memo sent by Paulson and top brass to all employees of his PRv holding company on Sept.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 the Paulson-owned La Concha Resort.
Says the memo: “In the video, Fahad, who appears to be in a highly intoxicated state, is seen breaking glasses, pushing employees, and smashing 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 a person with managerial responsibility… Such reprehensible behavior, as demonstrated by Fahad, will not be tolerated by anyone at our properties.”
The memo puts an immediate ban on Ghaffar “from using any of our restaurants, facilities, or venues at La Concha Hotel, the Vanderbilt Hotel, the Condado Beach Club, the St. Regis Hotel and the Bahia Beach Resort. Security at all properties have been notified.”
Ghaffar’s attorney, Martin Russo, has fired back by commenting to Page Six that it’s, “all part of a smear campaign that Paulson has launched in response to the securities fraud case.”
Russo also alleges that Paulson was previously aware of the video.
“It’s ridiculous,” Russo says. “Ghaffar was running these entities after the video with no incident. It is a trumped up way to defame him and will be addressed.”
Page Six could not verify the date the video was taken.
The lawyer elaborated on Ghaffar’s appearance in the video, “He threw a chair down. People make mistakes.”
In the previous lawsuit Ghaffar filed against Paulson, he claimed he invested $17 million into Paulson’s F40 car company in 2022 that would be converted into a 50% equity stake, and that he repeatedly asked for the convertible note — a short-term debt agreement that converts into equity at a future date — that reflected his ownership stake.
Ghaffar says he received a letter around Aug. 18 from Paulson saying that he was removed “from all positions with F40.”
Ghaffar is suing Paulson for securities fraud, unjust enrichment in violation of Puerto Rican law, breach of contract, fraud, damages, violation of the uniform securities act of Puerto Rico and constructive trust.
A spokesperson for Paulson’s PRv previously released a statement to Page Six calling Ghaffar’s lawsuit a “baseless attempt to deflect attention” from his alleged misconduct, and saying Paulson will file a counter-complaint.
Paulson, who became famous for shorting the housing market in 2007, is also going through an acrimonious divorce with his wife who is demanding $1 billion.
Read the full article here