In the ongoing divorce battle between Jenny Paulson and her ex-husband, billionaire hedge funder John Paulson, things have escalated to new heights. Jenny has now accused John of using a “sham” real estate deal to take $10 million out of a family trust. According to a recently filed amended complaint, Paulson allegedly used a trust set up in 2009 to purchase an apartment at the St. Regis Bahia Beach Resort in Puerto Rico, which is owned by his company, Paulson & Co.
Jenny’s lawsuit claims that although the penthouse spot is valued at $15 million, Paulson purchased it in 2020 for an artificially low price of $5.6 million. This purchase allegedly resulted in an impermissible distribution of at least $10 million to Paulson from the 2009 Trust. Jenny also accuses her ex-husband of accumulating “hundreds of thousands of dollars in unpaid hospitality charges relating to this condominium.”
James T. Smith, John Paulson’s lawyer, vehemently denies the allegations made by Jenny. He argues that there are numerous factual inaccuracies in the amended complaint. Smith asserts that the condo purchase was not a sham, as Paulson signed a contract for the full list price in 2020. Furthermore, because the apartment has not yet been closed upon, there are no unpaid hospitality charges, according to Smith.
Jenny initially filed suit in July 2022, accusing John of fraud and claiming that he had been secretly diverting their assets into three trusts totaling billions of dollars. The suit alleges that these trusts, whose beneficiaries include their children, were established by Paulson unilaterally, without Jenny’s knowledge or consent, in order to shield them from her in the event of a divorce.
Responding to Jenny’s allegations, Paulson and his legal team claim that her lawsuit is nothing more than a “selfish money grab.” They argue that the trusts were created for the financial benefit of Paulson’s entire family, including Jenny, and that she is attempting to strip her own children of their rightful inheritance.
Furthermore, Paulson’s team points out several flaws in Jenny’s original complaint. They argue that the daughters and other trust beneficiaries were not named as defendants, the claims are time-barred, and Jenny was aware of the trusts for over 20 years, negating any potential fraud.
The bitter divorce between the couple, who were married for 21 years, has taken several ugly turns. Jenny learned of John filing for divorce, as well as his new relationship with fitness influencer Alina de Almeida, by reading about it in Page Six.
John Paulson, known for his successful bet against the housing market before the 2008 crash, is currently worth $3.5 billion according to Forbes. Jenny Paulson is seeking a billion dollars in the trust case. The couple is also embroiled in a separate legal battle over a $200 million real estate portfolio that includes properties in prestigious locations such as the Hamptons, Aspen, and Palm Beach.
Additionally, Paulson is facing another lawsuit from a former business partner, Fahad Ghaffar, who is seeking $50 million for alleged fraud and breach of contract related to an investment in a car company. Paulson has denied these allegations as well.
As the divorce between Jenny Paulson and John Paulson continues to unfold, the allegations and counterarguments intensify. With accusations of a sham real estate deal, hidden assets, and greed, the battle rages on both in and out of the courtroom. Only time will tell how this ugly battle will conclude and what the ultimate outcome will be for both parties involved.