Aug. 4 2023, Printed 12:30 p.m. ET
Russell Simmons and his ex-wife Kimora Lee have dragged their combat to federal court docket — the place the one-time pleasant exes are in a bitter battle with tens of tens of millions on the road, RadarOnline.com has discovered.
In accordance with court docket paperwork obtained by RadarOnline.com, Simmons, and Lee are each staking a declare in shares of a drink firm named Celsius that was ordered to be seized by the federal government.
Article continues under commercial
Simmons has been preventing together with his ex-wife and her estranged husband Tim Leissner.
Simmons and Lee have been married from 1998 to 2009. They maintained a pleasant relationship for years. Lee married banker Leissner in 2014.
In 2018, Leissner was arrested on prices he participated in an enormous international cash laundering scheme. He has been free on $20 million bail ever since.
Article continues under commercial
Leissner plead responsible in 2018 and was ordered to pay again $43.7 million as a part of his deal. Prosecutors used Leissner as their star witness to convict others. Leissner might be sentenced himself later this yr.
On the time of his arrest, Lee and Leissner used 3.3 million shares in a health drink firm Celsius Holdings to pay for Leissner’s bond and authorized charges.
In 2021, Simmons sued the couple accusing them of fraud. “Understanding full nicely that Defendant Leissner would wish tens of tens of millions of {dollars} to keep away from jail time, keep out on bail and forfeit monies for sufferer compensation, Defendants engaged on this blatant fraud to realize that nefarious and illegal purpose,” his lawsuit learn.
He accused the duo of transferring shares owned by him to their very own account. He demanded his ex and his estranged husband pay him damages and return his Celsius shares.
Simmons and Leissner denied all allegations of wrongdoing. The civil lawsuit stays ongoing in Los Angeles Superior Court docket.
Article continues under commercial
Now, the combat has spilled over to federal court docket as a part of Leissner’s legal case. In March 2023, the court docket ordered the funding financial institution to forfeit all rights and curiosity in 3.3 million Celsius shares held in Lee’s checking account.
Lee claimed that 892,732.40 shares of the three.3 million are hers. She mentioned they shouldn’t be seized by the federal government and ought to be. The shares are value round $93 million.
Article continues under commercial
Lee defined her shares have been bought 1.5 years earlier than any shares of Celsius inventory have been restrained by the court docket in connection along with her ex’s legal case.
“The acquisition of the Celsius shares was with Lee’s separate funds from her private, personal checking account that was beforehand funded by earnings Lee earned from her modeling profession and attire line, amongst different private enterprise ventures through which Leissner had no involvement or curiosity,” Lee’s movement learn.
Lee fashioned an funding firm Nu Horizons in 2011. She was the only member and supervisor, in line with court docket paperwork. Leissner was appointed as a supervisor.
Lee mentioned she bought $1 million value of inventory in 2017. The shares have been held in Nu Horizon.
MORE ON:
Kimora Lee Simmons
Kimora Lee with Tim Leissner
Article continues under commercial
“This was achieved based mostly on Leissner’s promise that Lee would get the good thing about Nu Horizons’ beforehand acquired shares of Celsius (bought at a cheaper price), which might be blended with Lee’s contribution,” the movement learn.
“When Lee bought the Celsius shares in January 2017 along with her personal separate funds, Lee neither knew nor had cause to know that these shares would later grow to be topic to forfeiture,” the submitting learn.
Lee mentioned Leissner didn’t contribute any funds to the acquisition of her shares. Subsequently, she demanded the 892k shares be returned to her account.
In regard to Simmons, Lee mentioned her ex-husband didn’t make investments his personal funds to buy shares of Celsius and didn’t contribute any cash to Nu Horizons for the acquisition of Celsius shares. Additional, she mentioned he had resigned as a supervisor of Nu Horizons in 2018 and transferred all his curiosity in Nu Horizons to Lee’s firm.
Article continues under commercial
Simmons filed his personal stake within the shares. He claimed Lee invested in Celsius as a result of he proposed the funding. He mentioned, throughout his time as supervisor at Nu Horizon, he bought the prior shares of the corporate with Leissner in 2015 — the identical shares that Lee blended her shares with after buying hers in 2017.
Simmons argued that Lee and Leissner dedicated fraud and unlawfully used his shares when Leissner’s authorized issues began. The disgraced media mogul has demanded the federal court docket award him at the least 49% of the shares.