Soros Accused of Rigging Building Sale

A real estate company is claiming that George Soros rigged the bidding for the General Motors bidding.
In 2003, Leslie Dick Worldwide Ltd. offered $1.5 billion for the building, but Conseco, the building’s owner, sold it to Macklowe Properties Inc. for $1.4 billion.

Dick’s amended complaint, filed three weeks ago in Manhattan’s state Supreme Court, says Soros gave Macklowe $350 million, including the $50 million deposit Macklowe made, “essentially making Soros the real purchaser of the building.”
“The entire bidding and contract award process engaged in by the defendants was improper, unlawful and permeated with fraud,” Dick’s court papers say. “Plaintiffs have suffered financial losses and damages caused by defendants’ illegal acquisition and current illegal ownership of the GM building.”
Dick, whose original complaint was filed in April, asked the court to declare the bidding process “a fraud and a sham” and to void the sale, to impose a constructive trust to take control of the building until this case is over and to award Dick $750 million.
Conseco spokesman James Rosensteele said Tuesday, “We believe the suit is without merit, and we will defend it vigorously.”
Soros spokesman Michael Vachon said “the case is entirely without merit.”
Macklowe Properties spokesman Howard Rubenstein said his client called the lawsuit “absurd” and said it was “totally devoid of any merit.”
The building once was partly owned by developer Donald Trump, who bought it with Conseco in 1998 for $800 million. Trump’s name was spelled out across the front of the building in huge gold-colored letters.

Posted by Eddy Elfenbein on July 12th, 2006 at 6:17 am

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