A bad week for the financier of American progressive politics got a bit worse. A North Carolina-based cargo airline claims George Soros and one of his partners designed “an elaborate shell game intended to defraud,” and are using it to duck a $39.4 million judgment. The company, Tradewinds Holdings a subsidiary of Coreolis Holding say they hold a legal judgment against C-S Aviation Services, and seek to pierce the corporate veil to hold George Soros and Purnendu Chatterjee responsible.
The saga began when Tradewinds, an air freight carrier, obtained an entry of default against C-S Aviation in August 2004. C-S was once the world’s largest lessor of A300 aircraft, and had leased planes to Tradewinds. Four years passed, and by then Tradewinds had been sold. Its new owners included the General Retirement System of the City of Detroit and the Police and Fire Retirement System of the City of Detroit.
According to the plaintiffs, when Soros and Chatterjee entered the aviation financing business in 1994.
“For this purpose they put in place a complex, multi-tiered corporate structure designed to, inter alia, conceal Soros’ participation in the business, and ensure that the aircraft management company which actually conducted the business and might therefore be sued in connection with its conduct of the business, owned no aircraft and was otherwise judgment proof,” according to the federal complaint. “The entire business structure was designed as an elaborate shell game intended to defraud and perpetrate injustices.”
Geroge Soros? The guy who single-handedly brought down the Pound Sterling? He would do such a thing?
While Chatterjee was officially the sole shareholder of the company, Soros actually owned at least half the enterprise, “notwithstanding the irregularity of defendant’s failure to record Soros’ interest through ownership of stock,” the complaint states.
They claim that that Soros and Chatterjee grossly undercapitalized C-S Aviation for the purpose of defrauding creditors. Basically one of the richest men in the world didn’t give his company enough seed money (but he needed the money to purchase the 2008 election!).
“In a further effort to defraud creditors, while simultaneously evading Federal Aviation Administration regulations designed to safeguard national security, defendants vested bare-bones legal titles to the aircraft which they controlled through C-S Aviation, in Wells Fargo Bank Northwest,” according to the complaintNevertheless, Coreolis clams, “All profits from rental of the aircraft were up-streamed to the defendants.” As a result, “Wells Fargo never held any monies with which to satisfy a judgment and appeared as a ‘straw man ‘in the underlying litigations.”
Coreolis claims that Soros and Chatterjee “entirely ignored corporate formalities, disregarding formal management structure, kept no minutes of directors’ meetings or other normal corporate records … [while they] freely comingled C-S Aviation funds with the funds of other companies they controlled.”
But after 9/11 the aviation industry tanked, so the plaintiffs claim 2003 Soros and Chatterjee abandoned C-S Aviation and allowed creditors to obtain default judgments against them, the plaintiffs say even then, Coreolis claims, the defendants failed to wrap up the company’s affairs in accordance with the law
Coreolis claims Soros and Chatterjee stopped paying fees to Delaware, C-S- Aviation’s state of incorporation, and “hastily stripped” the company of its officers, directors, employees, contracts and assets, which they now use in the guise of a new corporation on Soros’ premises. (which is similar to what he wants to do with the US House after the mid-term elections.)
Coreolis claims this situation continued until July, when a North Carolina court rendered the $39.4 million judgment against C-S Aviation. That’s when the man once convicted of insider trading sprung into action.
In response, Soros and Chatterjee paid the back fees they owed Delaware, to bring the company back into good standing, a step necessary for them to move that the court vacate its judgment. But the court declined to do so, according to the complaint.
Coreolis claims that it can’t collect its judgment because Soros and Chatterjee have “abused the corporate form” and rendered C-S Aviation insolvent.
They ask the Federal Court to pierce the corporate veil, declare Soros and Chatterjee liable and enter judgment for the full amount of the North Carolina ruling.
Just one more look into the morality of the guy who bankrolls and controls the progressive movement in the US. Maybe he should take some of that money he recently gave Media Matters and NPR in an attempt to control the media and use it to pay off his debt.