Summary: A missing $19.5 million is the main issue in the divorce proceedings between two Los Angeles attorneys.
Two Biglaw attorneys in Southern California are in the midst of a sticky multimillion dollar divorce. Hydee R. Feldstein, a retired partner at Sullivan & Cromwell is fighting her husband Peter Gregora, a partner emeritus at Irell & Manella filed for divorce after 27 years of marriage. The couple is disputing the reported disappearance of millions of dollars and who should get ownership over their joint assets.
The divorce has yet to go to trial but the couple has already spent a combined $4.5 million in legal fees in the pretrial process. Feldstein has Christopher Rudd, a former partner at Manatt, Phelps & Phillips and Venable. Gregora is represented by Dennis Wasser.
Feldstein claims that her husband, who managed their money, used elaborate financial schemes to conceal almost $20 million in a hidden equity fund in Luxembourg. She believes he breached his fiduciary duties to her so she is entitled to their remaining shared assets of $15 million plus their $7.25 million dollar home.
Feldstein specialized in bankruptcy and leveraged-lending law during her legal career, leading to the question of how someone with nearly 30 years of financial experience could lose track of $20 million. Gergora specializes in corporate tax, real estate and banking law. She claims that his financial banking expertise plus her trust in him allowed him to take the money.
Gregora claims that his wife is paranoid and has no proof to back up her allegations. During the pretrial brief, he stated that she accused her former employers of tapping her phone, installing cameras in her home, and plotting to have her killed. He claims these paranoid and unfounded accusations are common for her.
She claims that Gregora has stashed thousands of dollars in cash in envelopes throughout the house in addition to concealing assets by leaving them off of their tax returns. Neither party has produced evidence or documents to substantiate their claims.
She has filed a separate lawsuit against Versa Capital Management Inc., for the loss of $19.5 million invested in a fund they manage.
Source: http://www.therecorder.com/id=1202729018131/Missing-20-Million-at-Issue-in-Lawyers-Divorce
Photo: mydivorcepapers.com