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Feb 27, 2015 5:23 PMPublication: The Southampton Press

Ira Rennert Ordered To Repay $118 Million

Mar 5, 2015 10:32 AM

The owner of the South Fork’s largest private residence, Ira Rennert, was found liable to stockholders on Friday for $118 million in money borrowed from one of his holding companies—and which he apparently used to purchase the Sagaponack land where his 64,389-square-foot mansion now stands.

A federal jury on Friday found that Mr. Rennert and his holding company, Renco Group Inc., were liable for the $118 million that it borrowed against inflated projected earnings of Magnesium Corporation of America, or MagCorp, one of its subsidiaries.

The $118 million in new MagCorp debt was directed to Renco and its billionaire chief executive in 1996, just months before Mr. Rennert purchased the 63-acre lot on Daniels Lane for $11 million. Construction of the mansion, which totals more than 100,000 square feet with its numerous accessory buildings, began in 1999. The estate was recently valued by the Southampton Town assessor’s office at $248.5 million.

The jury found Mr. Rennert personally liable for $16.2 million and Renco for $102 million of the money that vanished from MagCorp.

The lawsuit was brought by a MagCorp trustee, Lee Buchwald, who will now reportedly seek nearly two decades of interest on the money. Renco said in a statement on Friday that it will appeal the ruling.

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Ira could have, would have and did build his house with his own hard earned money. Mr. Rennert is an upstanding member of the NY Jewish community, is respected, honorable charitable.

I assure you that this bogus verdict gets set aside.
By Summer Resident (251), Southampton N.Y. on Feb 28, 15 1:38 AM
Willing to bet that the residents of La Oroya, Peru would disagree...

"In 2004, a public health expert in Missouri named Fernando Serrano got a call from an archbishop in Peru. High up in the Andes, a metals refinery [owned by Rennert] was spewing pollution that coated the factory town of La Oroya. The archbishop wanted Mr. Serrano to assess the damage.
Mr. Serrano, a professor at Jesuit institution Saint Louis University, flew to the Peruvian capital of Lima and took the long, winding ...more
By Nature (2966), Southampton on Feb 28, 15 9:53 AM
Is your post a joke or are you just completely misinformed. Rennert is reviled by basically everyone who has met him unless they are in some way benefitting from some trickle down from the money he stole.

The article above is real. He stole $118M to build his ego driven castle.
He has damaged the lives of countless people through the world by exploiting them and polluting their homes. The man has no shame.

He may be a member of the NY Jewish community but he is not thought ...more
By Arnold Timer (327), Sag Harbor on Feb 28, 15 7:16 PM
Do you know anything about him other than the crap you read? Are you a member of any of the organizations he supports? Have you had a chance to sit with him and have a conversation?
By Summer Resident (251), Southampton N.Y. on Mar 1, 15 1:47 PM
1 member liked this comment
U.S. Magnesium has been designated a SuperFund cleanup site in Utah.

That's in addition to the pollution in the Andes. Filing for bankruptcy to avoid fines must be simply "good business practice".

Philanthropy has been used to justify a lot in the last 150 years...
Mar 1, 15 3:38 PM appended by Mr. Z
It also bears mentioning that an agreement was reached in 1997 to clean up La Oroya, not make the pollution worse.
By Mr. Z (11847), North Sea on Mar 1, 15 3:38 PM
1 member liked this comment
Summer Resident, if it walks like a duck....

Mar 1, 15 5:21 PM appended by dnice
Bernie Madoff had a lot of people that liked him too.
By dnice (2346), Hampton Bays on Mar 1, 15 5:21 PM
This is how a leader behaves:

CEO of Japan Airlines Takes The Bus To Work And Gets A Salary Less Than Some Of The Employees

February 27, 2015 by John Vibes

Haruka Nishimatsu, CEO of Japan Airlines lives by a philosophy that many corporate bosses should be paying close attention to.

Instead of acting like the ruler of the company, Nishimatsu acts like a leader, and sacrifices some of the big corporate perks so he can build a stronger and more dedicated workforce.

“If ...more
By Mr. Z (11847), North Sea on Mar 1, 15 5:43 PM
1 member liked this comment
Rennert, one of the most despicable venture polluters that has ever lived recently avoided a $900 million fine by declaring his magnesium mine in Utah bankrupt. His magnesium factory has since become a US Superfund site filled with toxic sludge. Meanwhile, he bought Sparrow Steel Mills for $125 million in cash last week. People as disgusting as Ira Rennert tend to give a few token sheckels to charity for the sole purpose of creating cheerleaders like Summer Resident. At the end of the day, he's ...more
By GG Alin (11), Southampton on Mar 2, 15 7:42 AM
I never sat and had a conversation with Hitler, Baby Doc Duvalier, or Khadafi. They had some fans as well. His record speaks for itself. You can't inflict the personal harm and environmental damage Mr. Rennert has or steal from your investors and still get a pass as being a "good guy".
By Arnold Timer (327), Sag Harbor on Mar 3, 15 2:06 PM
3 members liked this comment
who are you, his lawyer?
By LI Lily (2), Sag Harbor on Mar 15, 15 10:48 AM
"64,389-square-foot mansion"
That's just disgusting.
By double standard (1506), Remsenburg on Feb 28, 15 10:37 AM
I think we to have a fund raiser
By Jpal (5), hampton bays on Feb 28, 15 12:04 PM
1 member liked this comment
he won't pay, ever, since this case will be tied up on lawsuits and appeals well after he is long gone. however he has made a big improvement of the salaries of law enforcement persons locally who are guards.
By xtiego (698), bridgehampton on Feb 28, 15 5:00 PM
3 members liked this comment
Summer Resident must be Rennert's helicopter pilot. Buh-bye.
By we could run this town! (129), the oceanfront trailer park on Mar 3, 15 10:48 PM
Now where did I leave my supply of tar and feathers.?
By Percy (7), Montauk on Mar 7, 15 8:33 AM
It's so amazing how ANYONE can justify this obvious SELFISH GREED!!! There are so many "others/"Brothers" who are polluting our environment and cleverly convincing people that they are GOOD GUY$ by even investing millions at universities setting up workshop and making donations sneaking into the educational system influencing their SICK POISONING ideals.
By MsB (17), Southampton on Mar 8, 15 2:26 PM