An accused philandering aged Manhattan private-equity bigwig who as soon as owned a menagerie of unique animals is telling his soon-to-be ex-wife that he’s now completely destitute, in line with courtroom hearings.
John H. Foster, 82, a longtime health-devices mogul and managing companion of the $800 million private-equity agency HealthPointCapital, claims that in his 15-year marriage to spouse Stephanie Foster, 57, his roughly $50 million web price plummeted “to what’s now barely, barely a optimistic web price, if in any respect,” in line with his lawyer, Linda Rosenthal, in Manhattan Supreme Courtroom in June, a transcript exhibits.
Stephanie’s out-of-control garments buying occurred “at a charge that … none of us can conceive,” his lawyer mentioned.
However the high-flying exec’s estranged partner argues she was “surprised” when her hubby instantly cried poverty — as a result of he was nonetheless always flying forwards and backwards from Florida to New York Metropolis for botox, hair-dying and nail care appointments.
“I imply, if I used to be $12 million in debt, I’d be fairly freaking apprehensive,” she instructed The Publish, referring to John’s alleged in-the-red ledger, throughout an unique interview. “I wouldn’t be gallivanting round … doing my magnificence remedies.”
The spouse mentioned she noticed a damning textual content from her husband suggesting that his claims of poverty have been simply a part of an elabrate ruse to idiot her and the courts.
Her camp says that in actuality, the enterprise mogul continues to financial institution thousands and thousands of {dollars} in offers — together with his days-old sale of an unique Fishers Island residence — and not too long ago bought an $800,000 luxurious Hinckley yacht simply final 12 months.
John’s fortunes solely supposedly reversed, leaving him the $12 million within the gap, when the divorce started, Stephanie and her lawyer have argued in proceedings they are saying he’s tried to maintain from the general public — and his shareholders.
The pair is about for an additional showdown in Manhattan courtroom Monday.
“He’s asset-stripping the marital property,” Stephanie instructed The Publish.
Stephanie mentioned their courtroom battle is simply one other company sport for her husband — and claimed she even discovered a textual content on his telephone thanking a household lawyer for his assist in hiding cash from her.
Rosenthal fired again to The Publish in an announcement, “John Foster has been totally clear and above board with the divorce courtroom and his spouse.
“Any suggestion on the contrary is fake,” his lawyer mentioned.
However Stephanie mentioned she noticed the damning textual content from her husband throughout an tried reconciliation Christmas lunch on the posh French La Goulue eatery in 2021.
John briefly bowed out to stroll their canine and left his telephone behind, she mentioned. Stephanie mentioned she lengthy had her husband’s telephone password for ordering meals and serving to him obtain apps, so she logged in — to test if he was nonetheless texting the ladies she believed he was dishonest on her with.
As an alternative, she mentioned, she found the “surprising” textual content from her husband to a household lawyer who she mentioned had represented each of them prior to now.
“Your net-worth technique labored. Steph is surprised,” learn the textual content message shared with The Publish.
“Instructed me I’m bankrupt!” John’s alleged textual content continued. “She’s very upset!”
Stephanie says her “palms have been shaking” as she learn the textual content and rapidly took an image earlier than returning the telephone earlier than her husband returned.
Regardless of a long time of dwelling a lavish way of life, as soon as the divorce started, John declared himself “instantly destitute,” mentioned Stephanie’s lawyer, BriAnne Copp, throughout opening statements in courtroom in June, in line with a transcript.
“This case is about greater than a easy divorce,” Copp mentioned on the listening to. “At its coronary heart, it’s about manipulation and management – of my consumer, of the funds, and even of the knowledge that’s accessible to current at this trial.”
Lanny Davis, who was not too long ago retained by Stephanie as a authorized adviser — and beforehand served as particular counsel to former President Invoice Clinton and as a civil liberties panel adviser to former President George W. Bush — instructed The Publish, “We hope that by her testimony on Monday, Mrs. Foster can set the document straight and assist obtain a simply results of an equitable distribution of ‘marital belongings,’ as outlined underneath New York legislation.”
Copp, who declined to remark, citing a confidentiality stipulation, argued in June that John has been manipulating his funds because the begin of his divorce proceedings by transferring round thousands and thousands of {dollars} to keep away from any payout to his spouse.
Copp has mentioned in courtroom that her consumer left her profession as an funding banker with Deutsche Financial institution when the pair married in 2009 and that she now has no belongings to talk of.
“Whereas he’s lived a wonderful way of life for the final 60 years, now that he’s embroiled in a divorce, now he’s instantly $12 million in debt,” Copp mentioned on the listening to.
That ”fabulous” way of life included a $10 million residence offered simply days in the past on the unique Fisher Island, a 5,000 acre Texas ranch full of unique African animals — together with oryx, sable and zebra — and a Gulfstream IV-SP jet that the previous couple used for weekend journeys to the Texas ranch, Fisher’s Island and John’s house at The Breakers in Palm Seaside, Fla., her camp claims.
Copp mentioned in her courtroom assertion that John additionally purchased an $800,000 Hinckley yacht and deposited over $3 million in his account prior to now 12 months alone.
However his lawyer blamed Stephanie’s clothes-shopping habits for partially draining greater than $45 million in her hubby’s web price and mentioned she is thrashing up on a poor previous man, in line with latest courtroom hearings.
Stephanie claims she requested her husband — simply days after discovering the seemingly damning textual content message — why he was nonetheless spending prolifically on his self-care coiffing reasonably than huddling with a chapter lawyer.
“I mentioned, ‘I feel your restricted companions could be very excited about realizing that their [general partner] is $12 million within the purple,’ ” she recalled.
“He appears at me and he goes, ‘Properly, that may be fairly embarrassing, wouldn’t it?’ ” she claimed.
In accordance with Stephanie, their marriage ended not due to an extended string of her husband’s alleged affairs however due to a remark he made throughout her efforts to to evaluation for her aged husband’s property planning.
“I don’t care what occurs to you after I die,” John allegedly mentioned to her, Stephanie instructed The Publish.
“I filed for divorce fairly rapidly afterwards,” she mentioned.
The caustic continuing has been beset by what Stephanie calls “company chess.”
It additionally isn’t the primary time John has been accused of making an attempt to cover belongings.
In 2014, John and considered one of HealthPointCapital’s portfolio firms, Alphatec, misplaced a significant lawsuit after they have been accused of orchestrating “a fraudulent switch of belongings” to keep away from paying a debt, in line with BioSpace.com.
A jury finally awarded the plaintiff, OrthoTec, a $73 million greenback verdict.
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