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Post by The Ultimate Nullifier on Nov 30, 2016 9:45:56 GMT -6
www.hollywoodreporter.com/features/inside-steven-mnuchin-s-hit-miss-path-hollywood-treasury-secretary-pick-951232Inside Steven Mnuchin's Hit-and-Miss Path From Hollywood to Treasury Secretary Pick From losing millions in the failed Relativity studio (and stepping down as co-chairman weeks before bankruptcy) to backing Warner Bros. flops and hits with high-flying producers Brett Ratner and James Packer, the former Goldman Sachs banker has done business with Donald Trump (and been sued by him) and had a cameo (with his actress fiancee) in Warren Beatty's new movie. On Nov. 14, 2015, banker, hedge fund manager and Hollywood film investor Steven Mnuchin celebrated his engagement to Scottish actress-producer Louise Linton with a champagne-and-caviar party in the flower-filled Crystal Ballroom at the Beverly Hills Hotel. Among the guests dancing to the cover band that night was embattled Relativity Media founder Ryan Kavanaugh — perhaps surprising given that colleagues say Kavanaugh just months earlier bitterly had blamed Mnuchin's OneWest bank, which had made significant loans to Relativity, for pushing his company into bankruptcy by abruptly pulling millions of dollars from one or more of its accounts. This wasn't an ordinary quarrel between lender and creditor: From October 2014 through May 2015, Mnuchin simultaneously had served as chairman of OneWest and co-chairman of Relativity. He quietly had exited Relativity a few weeks before his bank acted to recoup some of the tens of millions it had loaned to Kavanaugh's troubled studio. Shortly after that, Relativity filed for Chapter 11 protection. (According to a regulatory filing, OneWest's board had approved all Mnuchin's dealings at Relativity.) Also among the guests at the engagement party was former William Morris Agency chairman Jim Wiatt, who along with Mnuchin had been a board member at both OneWest and Relativity. Wiatt describes the groom-to-be as "a good friend, really smart with a good sense of humor" and the future bride as "a really terrific lady." But while Mnuchin, 53, has a long history of investing in the movie business — and while the guest list included some who, like Wiatt and producer Cassian Elwes, are well known and long established in the entertainment industry — this was not a gathering that included the industry's top power players. "The core Hollywood establishment was conspicuously absent," says someone who was there. Lately, according to a business associate, Mnuchin has been joking that his wedding might take place on the White House lawn — and for good reason. Long considered an important but relatively low-profile industry moneyman, he is on the national stage, having served as finance chairman for Donald Trump's presidential campaign and now, apparently, the president-elect's pick for Treasury secretary. (Full disclosure: Though for decades I have refrained from commenting publicly on politics, I have been a vocal detractor on social media of Trump.) Certainly if Mnuchin faces questions on Capitol Hill as a Trump appointee, they likely will center on controversies involving practices of Pasadena-based OneWest during his time as chairman rather than his dealings in Hollywood. But for entertainment industry insiders, his relationship with Kavanaugh and his dual roles at the bank and Relativity have raised eyebrows. "I'm not saying there's anything wrong with it necessarily," says one senior figure in the financial world, "but you don't see that very often." Some acquaintances see the relationship with the high-flying Kavanaugh as a sign that Mnuchin gradually has become more enamored of show-business glitter. "It's not the first time a middle-aged financier came to Hollywood and got caught up with the glamour and excitement," says one industry veteran who knows Mnuchin. Says another: "He's changed. He became that dude." But a Mnuchin associate disputes that characterization. "He's been in the finance business since 1985, investing in all different types of things," he says. "He believes in the value of content." Brett Ratner, whose production-finance company RatPac Entertainment is a partner with Mnuchin's Dune Capital Management in the investment entity RatPac-Dune, says that as far as he knows, Mnuchin is a staid businessman who is "not in my social circle." (The nightlife-loving filmmaker and his fellow RatPac co-founder James Packer long have been fodder for the tabloids.) Ratner met Mnuchin many years ago through Sears CEO Eddie Lampert, Mnuchin's Yale University roommate. "I've never seen Steven at any parties, any events," Ratner says. "He's not like a lot of people who get into Hollywood so they can be seen." Wiatt concurs: "He doesn't go out and party every night. That's not who he is. He's a serious guy and a very good businessman." He cites Mnuchin's success acquiring and reviving IndyMac, a notorious failed lender that was renamed OneWest. The bank represented a huge payday for Mnuchin and fellow investors, who acquired it for $1.5 billion in 2009 amid the financial crisis and then collected $1.9 billion in dividends before selling it to CIT Group in July 2014 in a $3.4 billion deal. An investor in banking and real estate as well as entertainment, Mnuchin is in Hollywood but not of Hollywood. His Dune finance vehicle co-financed a successful run of 20th Century Fox movies (including Avatar) from 2005 through 2012. Mnuchin's dealings in the industry in recent years have teamed him with Kavanaugh, known for making wildly optimistic statements about the health of his struggling company. Dune has a deal with RatPac to invest several hundred million dollars in most Warner Bros. movies. A Mnuchin associate says the investor regards Warners as "the preeminent movie studio" aside from Disney, yet the investment came in 2013 as Warners was entering a protracted slump. It's easy to see why some think Mnuchin has fallen under Hollywood's spell. A former Goldman Sachs partner who left in 2002 and started Dune two years later, he moved from New York to Los Angeles when he took the helm of OneWest in 2009. He bought a 23,000-square-foot, $26.5 million home in Bel Air, complete with a ballroom, and ended his 15-year marriage to the mother of his three children. Eventually he and Kavanaugh bought a Falcon 50 jet together. (It since has been sold.) Mnuchin took up residence at the Hotel du Cap during the Cannes Film Festival. He and Linton are regulars at the see-and-be-seen Tower Bar restaurant on Sunset Boulevard. He even has a cameo as "Merrill Lynch executive" in Warren Beatty's new film, Rules Don't Apply. Linton also has a minor role in the film, on which Mnuchin is credited as a producer. The nature of Mnuchin's dealings with Trump, whom he has known for 15 years, is not clear, though he has acknowledged — while declining to elaborate — that he has done business with the president-elect, including investing in a Trump property in Waikiki, Hawaii. And he hasn't escaped Trump's litigiousness. In 2008, Trump sued defendants including Mnuchin's Dune to extend the term of a construction loan for his 92-story luxury hotel and condominium tower in Chicago. The case was resolved out of court. Mnuchin contributed the maximum to Trump's campaign and gave another $200,000 to the Republican National Committee, according to the Center for Responsive Politics. But Mnuchin and his ex-wife, Heather, also have given to Democrats, including Hillary Clinton in previous elections and California's liberal U.S. Sen.-elect Kamala Harris. "I'm not a traditional fundraiser — I think that was part of the appeal I had for Donald," Mnuchin told The New York Times in May. "I've always believed in supporting the best candidate at the time." Trump chose Mnuchin as his finance chair in May even though the then-candidate previously had taken a shot at Mnuchin's line of work. "The hedge fund guys didn't build this country," Trump said on CBS' Face the Nation in August 2015. Many hedge fund managers are "paper-pushers," he added. "They make a fortune. They pay no tax. It's ridiculous." Mnuchin has not commented on those remarks and declined to speak on the record for this story. Described by acquaintances as slightly awkward but with a healthy ego and a terse negotiation style, Mnuchin is the son of octogenarian Robert Mnuchin, another onetime Goldman Sachs partner who now is a prominent art patron with an eponymous gallery on New York's Upper East Side. The elder Mnuchin's collection includes works by Willem de Kooning, Mark Rothko and Jackson Pollock. Steven Mnuchin has been dogged by a number of legal battles in recent years. In 2010, he and his brother were sued after they refused to return $3.2 million from Bernie Madoff's Ponzi scheme that had been deposited in their late mother's account. Mnuchin and his brother had withdrawn those funds before Madoff's crimes were revealed, and there is no allegation that they had any knowledge of Madoff's misdeeds. "It was my mother's estate, and I was merely the executor," Mnuchin told Bloomberg News earlier this year. "I was not involved in it whatsoever. It's long over, and I had nothing to do with it." The suit eventually was dropped after the trustee seeking to recoup profits from Madoff's fraud ran out of time to pursue claims. Other legal challenges arose after Mnuchin led a group of investors in the IndyMac acquisition and became the renamed OneWest's chairman. Coming in the wake of the 2008 financial meltdown, the sale was viewed as a sweetheart deal, with the government bearing the risk. In November 2011, picketers showed up at Mnuchin's house in Bel Air to protest the bank's aggressive foreclosure practices, which faced court challenges and which critics alleged were discriminatory. More recently, on Nov. 17, a coalition of California community groups filed a complaint with the federal Department of Housing and Urban Development accusing the bank of locating branches in predominantly white neighborhoods, shunning nonwhite borrowers and other discriminatory practices. Over the course of his tenure in the entertainment world, it appears that some of Mnuchin's partnerships have become strained as the harsh vagaries of the movie business made themselves felt. Though Dune's slate deal with Fox was one of the more successful of its kind, Mnuchin and his partner, Chip Seelig, went their separate ways in 2012. Sources say Mnuchin wanted to sweeten terms of the deal and Fox balked. A Mnuchin associate tells THR that Dune decided not to extend the Fox relationship "for investment reasons" and says the split "was not contentious at all." But Seelig formed his own company and remained in partnership with Fox while Mnuchin did not. By the end, a source says there was "no love lost" between the two. Seelig did not respond to requests for comment. Mnuchin had met Packer through New Regency financier Arnon Milchan, and with the Fox deal finished, he forged a partnership with RatPac to invest in the Warners slate. "Steven has probably invested in more films than anyone other than the studios," says the Mnuchin associate. The RatPac-Dune alliance started well with the hit Sandra Bullock-George Clooney space thriller Gravity in 2013, but it is believed to have taken a drubbing on such Warners flops as Pan, Jupiter Ascending and In the Heart of the Sea. (The partnership does not have any participation in the studio's Fantastic Beasts series.) Several months ago, Warners accommodated RatPac-Dune's desire to tweak the terms of the deal, according to well-placed sources. Says Mnuchin's associate, "In business deals, there are constant discussions people have with partners. He couldn't be happier with the relationship." (Warners declined comment.) Meanwhile, Mnuchin and Dune had invested in Relativity, and OneWest had loaned the precariously situated company tens of millions of dollars. In October 2014, Mnuchin became co-chairman of the studio, touting a possible IPO. "I've known Ryan for several years and have closely followed Relativity's success," Mnuchin said in a statement at the time. Some saw Mnuchin's decision to jump into the Relativity fray as a sign that the banker was looking to become the head of an entertainment company, but more likely Mnuchin hoped to pull off a rescue that also would help OneWest get repaid. A former Relativity insider says Mnuchin was "very professional, very smart, very hardworking, … a very sane voice" — particularly in contrast to Kavanaugh's inconsistent and often exaggerated statements. Says this executive: "I could see trusting [Mnuchin] in a company I would make an investment in. I would not trust Ryan." Interestingly, this executive sees echoes of Kavanaugh's unpredictable personality in Trump. "The inability to deal with criticism, the hiding of their finances — the parallels between Trump and Ryan are all over the place," he says. "Maybe there's something about that personality type that [Mnuchin] finds to be manageable or that he's drawn to." Certainly, says this exec, Mnuchin "did the best job of anybody I ever saw in terms of managing Ryan. He kept him on his best behavior. It was like a kid who would act out or misbehave but would not do it with an adult in the room." In July 2015, Relativity filed for bankruptcy protection, with liabilities of nearly $1.2 billion and assets of only $560 million. Just weeks earlier, Mnuchin's bank had shocked Kavanaugh by pulling millions from Relativity's accounts following Mnuchin's resignation as co-chairman May 29. Blackstone's Tim Coleman, Relativity's financial adviser, said in court papers that the bank's actions largely forced Relativity to "stop paying many vendor bills, to postpone production of certain film projects and to postpone the release of certain completed films." Relativity took steps to stop OneWest from withdrawing even more money. Some in the industry wondered whether Mnuchin might have put the bank's interests ahead of Relativity's when he was working for both. Mnuchin's spokesperson, crisis PR specialist Mike Sitrick, provided THR with a statement from Joe Woolf, OneWest's former head of entertainment finance: "Steven Mnuchin recused himself and, accordingly, had no involvement in any [OneWest] decision relating to the Relativity bank loan once he joined the Relativity board and throughout the bankruptcy process." This statement doesn't seem to address a window of a few weeks between the time Mnuchin left the board in late May and before Relativity filed for bankruptcy July 30 during which the bank withdrew millions from Relativity. In all, the bank withdrew about $50 million shortly before Relativity's Chapter 11 filing, according to court documents. Despite the funds that OneWest pulled from Relativity's accounts, the bank still was listed as a creditor owed $27.8 million in the bankruptcy. CIT — which acquired OneWest— said in a September filing that it was owed $38.5 million. Apart from the bank, Mnuchin and the Dune investors are believed to have lost tens of millions in the Relativity collapse. Then along came Trump. In early May, the GOP candidate named Mnuchin, who had supported Mitt Romney in 2012, to head his fundraising effort. A new and sure-to-be controversial chapter in Mnuchin's career got underway. Should Mnuchin take a role in the new administration (as a political appointee, he would face confirmation by the Republican-controlled Senate), it is unclear what would happen to Dune, or what might be the fate of RatPac-Dune. If Mnuchin is indeed headed to Washington, however, he apparently leaves Hollywood having repaired any ill will on the part of Kavanaugh, who is now trying to sell Relativity. While declining to address the specifics of their past business relationship, Kavanaugh tells THR through a spokesperson, "We remain close friends until this day." This story appeared in the Dec. 9 issue of The Hollywood Reporter magazine.
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Post by The Ultimate Nullifier on Nov 30, 2016 10:01:16 GMT -6
www.hollywoodreporter.com/news/steven-mnuchin-be-named-treasury-secretary-report-951207Hollywood Investor Steven Mnuchin to Be Named Treasury Secretary After reports surfaced Tuesday night that Trump was likely to name Mnuchin to the nation's top finance post, the former Goldman Sachs partner confirmed that he was the president-elect's pick on CNBC Wednesday morning. Hollywood insider Steven Mnuchin, whose film credits as an executive producer include the Tom Hanks film Sully and the Ben Affleck movie The Accountant, is expected to be named President-elect Donald Trump's Treasury Secretary. After reports surfaced Tuesday night that Mnuchin was likely to be named to the nation's top finance post, the former Goldman Sachs partner confirmed on CNBC Wednesday morning that he was the president-elect's pick. Mnuchin had been the finance chairman for Trump's presidential campaign. The 53-year-old former Goldman Sachs partner is co-founder of Dune Capital Management and chairman of Dune Entertainment Partners, which has provided funding for blockbuster films including Avatar. Mnuchin was said to have impressed Trump since being named to his campaign's top financial post in May. There have been reports for a few months that he was in line for the Treasury job. Trump also has met with other contenders for the job in recent days, including a meeting Tuesday with Goldman Sachs president Gary Cohen. The Democratic National Committee responded to the news with the following statement: "So much for draining the swamp. Nominating Steve Mnuchin to be Treasury Secretary — a billionaire hedge fund manager and Goldman Sachs alumnus who preyed on homeowners struggling during the recession — is a slap in the face to voters who hoped he would shake up Washington. Trump is already heading into office as the most corrupt, conflicted, and unpopular president-elect in history, and now he’s breaking his signature promise to the voters who elected him." News of Mnuchin's pick was first reported by The New York Times. Mnuchin's ties to Hollywood run deep. He merged Dune Entertainment with Brett Ratner and James Packer's RatPac three years ago to create RatPac-Dune Entertainment, which co-produced American Sniper and Mad Max: Fury Road. A year later, Mnuchin invested in Relativity Media and joined Ryan Kavanaugh's company as nonexecutive co-chairman, but left just before Relativity filed for Chapter 11 bankruptcy protection last summer. Mnuchin, who previously has supported Democrats — including Trump's rival for president, Hillary Clinton, when she ran for the Senate — has grown very close to Trump during the difficult campaign and has become one of his most loyal deputies. He has not only raised money for Trump, including at a fundraiser attended by some Republicans working in Hollywood, but also played a key a role in developing the candidate's economic policies that would reduce taxes and regulations.
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Post by The Ultimate Nullifier on Jan 19, 2017 14:53:16 GMT -6
deadline.com/2017/01/steve-mnuchin-confirmation-hearings-treasury-secretary-donald-trump-1201889597/Steve Mnuchin On China, The FBI And Relativity, Cayman Island Accounts — Confirmation Hearing Updated Final Steve Mnuchin, the former finance director for Trump’s presidential campaign, a former partner in Goldman Sachs, co-owner of OneWest Bank and who has been involved in several Hollywood films via Dune Capital Management and also Relativity Media prior to its bankruptcy, covered an array of topics during his Senate Finance Committee during confirmation hearings for the job of Treasury Secretary. Some surprising information about Relativity and the FBI emerged from the hearing through questions raised by two U.S. Senators, both Democrats. Democratic Senator Ron Wyden — also one of the most aggressive in the questioning today — accused Mnuchin of employing “tax tricks,” setting up offshore accounts in the Cayman Islands to avoid paying taxes. “Profits from Avatar were funneled through an offshore web,” said Wyden who clearly objects to Mnuchin rising to such a high level in the government. Wyden noted that in 2014, while CEO of OneWest, Mnuchin also bought his own stake in Relativity and bought a private jet with the CEO (Ryan Kavanaugh). OneWest then pulled out $50M from numerous accounts, harming the little guy “and bailed out right before the studio went into bankruptcy.” Wyden also said that an FOIA request into Relativity was denied by the FBI, citing that it would “interfere with a law enforcement proceeding.” The FOIA request came from a non-profit watchdog called MuckRock. Adding to that was Democratic Sen. Sherrod Brown from Ohio, who blasted Mnuchin on his financial dealings: “One example of an insider loan was the Relativity Media deal. The FBI denied a FOIA request related to Relativity Media where you were co-chair citing law enforcement procedures. Have you been questioned by law enforcement on this?” “I have not,” said Mnuchin “… I assumed that the FBI did a thorough review of my background report. I have no idea why they didn’t approve the FOIA issue. I’ve been told that we have no reason to believe that it’s any issue associated with me. I would direct that (question) to the FBI.” Brown opined that the OneWest purchase went well for Mnuchin but was a disaster for homeowners, employees, for investors in Relativity and for taxpayers which subsidized the purchase. Brown went on to ask about Chinese investment in the film industry and while co-chair at Relativity opening the doors to Chinese investment: “China readily admits that it wants to become increasingly powerful by increasing its cultural influence in this country and expanding its stake in the U.S. film industry. You were a board member of a company that partnered directly with the Chinese government that increased their influence in Hollywood. We’re you helping China expand it’s global power?” Mnuchin retorted: “As it relates to my experience at Relativity, the Chinese never invested in Relativity, and I don’t recall them ever having invested in Relativity films. They did have a small, joint venture in China but it was not particularly successful … in regards to my view on China, I, 100%, support the President’s view and we need to look at China overall from a trade standpoint, an economic standpoint and a securities standpoint. I look forward to working with him on that.” Sherrod shot back, saying: “That’s not the reports we’ve gotten.” He did agree with one Democratic Senator who called China “a monetary manipulator.” Brown also noted that Goldman Sachs has a long history with the Chinese. It is known that they have helped the Chinese on many real estate deals in Los Angeles alone. He also mentioned the Heartland’s steel industry. Sen. Bill Cassidy from Louisiana apologized to Mnuchin for being “assaulted by innuendo.” Repeated questions at today’s hearings were how Mnuchin at One West foreclosed on homeowners — from widows to families in the military — and that he failed to disclose all of his assets to the committee. “He operates seven personal trusts — including one called the Dynasty Trust” to avoid taxes, said Wyden. He also dubbed no tax cuts for the upper class as The Mnuchin Rule. Mnuchin said that while they didn’t have any employees, business office or business in the Cayman Islands, he said, “in no way did I use them, whatsoever, to avoid taxes … all other hedge funds and many, many private equity funds set up off shore entities that are primarily intended to accommodate non-profits and pensions that want to invest through these offshore entities. As it relates to my own tax situation, these entities were either taxed as U.S. corporations or U.S. partnerships.” He also added that some foreign investment was involved. “You failed to include your position as a director of Cayman Islands Corporation as well as (an official) in seven additional shell corporations and holding companies as well as $100M in real estate … as Treasury Secretary … would you support closing tax loopholes in the tax code that allows extremely wealthy people use — such as yourself — have used to avoid paying taxes?” asked Democratic Senator Debbie Stabenow from Michigan. In his defense, Mnuchin said that “Filling out these government forms is quite complicated … any oversights was unintentional. You mentioned that there was a $100M of real estate, I was told by my lawyer that it didn’t need to be disclosed.” Mnuchin said he delivered over 5,000 pages of forms and disclosures. Later in the afternoon, Mnuchin came under fire yet again for not “self-correcting” his omissions himself and it only came to light because the committee was made aware of it. Pressed about whether he would close the Cayman Islands for years. Would you be willing to close those loopholes? “I did not use a Cayman Island entity to avoid paying taxes for myself.” The senator then asked, “So you helped others avoid paying … ” Mnuchin cut her off and said he helped others with tax issues but it was all legal. Asked if he would work to close the Cayman Island loophole, Mnuchin said, “I would support changing the tax laws to make them simpler and more effective, yes.” Mnuchin was hammered for allegedly helping other companies avoid paying U.S. taxes. “Didn’t you help create offshore companies to help them avoid paying taxes?” asked another Senator — Sen Bob Menendez from New Jersey. “No. Not necessarily,” said Mnuchin. “I’m absolutely committed to working with your office … and not let anyone avoid taxes.” Asked by Florida’s Nelson if he moved Dune Capital Partners LLC to Anguilla, Mnuchin said yes, they set up a master fund in Anguilla “and had to change it to become a foreign entity.” He said it was complicated but said, once again, that it was done to help non-profits and pensions. After Wyden spoke, Republican Sen. Pat Roberts suggested that Wyden take a valium and infighting ensued. Wyden went through a timeline of Mnuchin’s financial dealings, including as head of the bank OneWest which has come under attack for foreclosing on more than 35,000 homes through loan modifications. It only made two loans to African Americans and that this segment of the community were harshly affected. “Since I was first nominated to serve as Treasury Secretary, I have been maligned as taking advantage of others’ hardships in order to earn a buck. Nothing could be further from the truth,” Mnuchin said in his opening remarks and then went onto defend his actions at OneWest bank, saying, “When we bought the bank, we assumed these bad (housing) loans which had been originated by previous management. Some of those individuals had to answer to federal authorities for their bad lending decisions. We invested $1.6B of capital into a failing financial institution when most investors were running for the hills. We renamed the business OneWest Bank and saved thousands of jobs … we worked diligently to help hard working homeowners remain in their homes through modifications, wherever possible. Ultimately, OneWest extended over 100,000 loan modifications to delinquent borrowers to try and help them out of a bad situation.” “In the press it has been said that I ran a ‘foreclosure machine.’ This is not true. On the contrary, I was committed to loan modifications intended to stop foreclosures. I ran a ‘Loan Modification Machine.’ One of those was an 80 year-old woman who was foreclosed on in Bill Nelson’s home state. They also foreclosed on 54 military families and 60,000 other homes. CA Attorney General’s office found that OneWest backdated documents and then obstructed any investigation. Sen. Brown continued to hit Mnuchin with one question after another, without giving Mnuchin any time to answer. Mnuchin did acknowledge to Sen. Nelson that there were some issues and some mistakes made. But it was a Republican Senator that underscored the issue. Sen Dean Heller of Nevada pointed out the fact that OneWest was able to get over $1B from the FDIC to its investors for foreclosing on homes. Mnuchin defended himself by saying that was against a loss. However, the anger that continued to nip at Mnuchin heels was for OneWest foreclosing on a number of homes (thereby returning ownership to the bank) from Senators from many states. “I never wanted to be in the mortgaging business or the reverse mortgaging business,” stated Mnuchin. “… I sympathize.”
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Post by The Ultimate Nullifier on Jan 19, 2017 14:57:45 GMT -6
variety.com/2017/biz/news/steven-mnuchin-trump-treasury-secretary-offshore-funds-1201963834/ Steven Mnuchin Grilled on Offshore Funds at Senate Confirmation Hearing Steven Mnuchin, the banking and hedge fund executive, and film financier who is President-elect Donald Trump’s nominee to be the next secretary of the treasury, was grilled by lawmakers over his investments, including his use of a Cayman Islands address as a tax shelter for his hedge fund. Sen. Ron Wyden (D-Ore.), the ranking member of the Senate Finance Committee, claimed the Mnuchin sought to take advantage of a 0% tax rate by moving his hedge funds to the Cayman Islands, thereby shielding profits, including returns from “Avatar.” That is one of the movies that Mnuchin helped finance via his Dune Capital fund. “It certainly wasn’t for ease of commute,” Wyden quipped about the Cayman Islands address. But Mnuchin said that he “did not use a Cayman Islands entity in any case to avoid taxes for myself.” He said that the Cayman Island entities were set up “for non profits and pension funds who want to invest through offshore” means. He told lawmakers that he was in favor of tax simplification, saying that it “makes no sense” that there were provisions in the law that encourage companies to set up the offshore addresses. “These are all just set up to make the accountants rich,” he said. He added, “I would support changing the tax laws to make sure that they are simpler and more effective.” Sen. Robert Menendez (D-N.J.) asked if Mnuchin set up offshore entities to enable his clients to avoid paying taxes. “This was done so different entities could invest. Sometimes it didn’t have anything do to with taxes,” Mnuchin said. Sen. Sherrod Brown (D-Ohio) asked Mnuchin whether he had been question by law enforcement over his connections to Relativity Media. Mnuchin said he had not. On Thursday, Brown sent a letter to FBI Director James Comey, asking the agency to disclose any findings they have discovered on Mnuchin and Relativity as part of an investigation of the film company, which declared bankruptcy in July, 2015. Mnuchin was a board member and co-chairman of Relativity until two months before the bankruptcy filing. A watchdog group had issued a Freedom of Information Act request to the FBI seeking information on Mnuchin and Relativity. But the FOIA request was denied, according to Brown, with the reason given that the release of such information “would interfere with enforcement proceedings.” “I have no idea why they didn’t approve the FOIA issue,” Mnuchin said.
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Post by The Ultimate Nullifier on Jan 19, 2017 20:00:30 GMT -6
www.hollywoodreporter.com/news/avatar-borat-devil-wears-prada-a-look-at-all-films-trumps-treasury-pick-steven-mnuchin-helped-fFrom 'Avatar' to 'Borat' and 'The Devil Wears Prada': A Look at All the Films Trump's Treasury Pick Steven Mnuchin Helped Finance Mnuchin came under the scrutiny of Senate Democrats Thursday for his film financing operation, which has assisted in paying for more than 100 Hollywood movies over the last decade. U.S. Treasury secretary nominee Steven Mnuchin's hedge fund has invested hundreds of millions of dollars in at least 116 Hollywood movies over the past decade, making him one of the most prolific film financiers in recent time. He's been involved with Oscar contenders (Black Swan) and movies starring Hollywood's biggest actors, including outspoken Donald Trump critic Meryl Streep (The Devil Wears Prada). He also had a hand in Avatar, which remains the top-grossing movie of all time. Dune, his film financing vehicle, suffered its shares of bombs, including Pan. Mnuchin took a drubbing Thursday from Senate Democrats during his confirmation hearing. In his opening remarks, Sen. Ron Wyden (D-Ore.) chided Mnuchin for using "tax tricks" to hide profits from Avatar and other investments in offshore accounts. Inside Steven Mnuchin's Hit-and-Miss Path From Hollywood to Treasury Secretary Pick "I did not use a Cayman Island entity to avoid tax liability for myself," Mnuchin replied when asked whether he would support closing offshore tax loopholes and referring to his time running Dune Capital Management and the affiliated Dune Entertainment, which had a longtime co-financing pact with 20th Century Fox, home of Avatar. "The entity was set up to accommodate non-profit and pension funds. They followed the law." In 2013, Mnuchin split with Fox and partnered with Brett Ratner and James Packer to form RatPac-Dune Entertainment, which has a slate deal with Warner Bros (he's taken a executive producing credit on some of the RatPac-Dune pics, including Sully and Suicide Squad.) Mnuchin will resign as chairman of Dune Entertainment upon his confirmation, and will divest of any financial interest in Dune within 90 day and of any interest in RatPac-Dune within 120 days, according to documents filed with the Treasury Department's legal counsel. That means he will no longer be involved in upcoming titles including Wonder Woman, Justice League and Christopher Nolan's Dunkirk, but his Hollywood resume hardly needs more padding, as evidenced by below. RatPac-Dune Entertainment 2016 Collateral Beauty Rules Don't Apply The Accountant The Midnight Man Storks Sully Suicide Squad Lights Out How to Be Single The Legend of Tarzan Central Intelligence The Conjuring 2 Keanu Batman v. Superman: Dawn of Justice Midnight Special How to Be Single War Dogs 2015 In the Heart of the Sea Our Brand is Crisis Pan The Intern Black Mass The Man from U.N.C.L.E. Vacation Entourage Mad Max: Fury Road Get Hard Run All Night Jupiter Ascending 2014 American Sniper Inherent Vice Annabelle This is Where I Leave You Edge of Tomorrow Godzilla Winter's Tale The LEGO Movie 2013 Grudge Match Gravity Dune Entertainment 2013 A Good Day to Die Hard 2012 Parental Guidance Hitchcock Life of Pi Lincoln The Sessions Chasing Mavericks Diary of a Wimpy Kid The Watch Prometheus The Three Stooges This Means War Chronicle 2011 We Bought a Zoo Alvin and the Chipmunks: Chipwrecked The Descendants The Big Year Rise of the Planet of the Apes Monte Carlo Mr. Popper's Penguins X-Men: First Class Water for Elephants Diary of a Wimpy Kid: Rodrick Rules 2010 127 Hours Gulliver's Travels Black Swan The Chronicles of Narnia: The Voyage of the Dawn Treader Love & Other Drugs Wall Street: Money Never Sleeps Machete Knight and Day The A-Team Marmaduke Just Wright Date Night Our Family Wedding Percy Jackson & the Olympians: The Lightning Thief Tooth Fairy 2009 Alvin and the Chipmunks: The Squeakquel Avatar Whip It Jennifer's Body All About Steve Post Grad Aliens in the Attic Night at the Museum: Battle of the Smithsonian X-Men Origins: Wolverine Dragonball: Evolution Bride Wars 2008 Max Payne Meet Dave The Happening Jumper 27 Dresses What Happens in Vegas X-Men Origins: Wolverine Marley & Me The X-Files: I Want to Believe The Secret Life of Bees 2007 Aliens vs. Predator: Requiem Alvin and the Chipmunks Hitman The Darjeeling Limited Death Sentence Live Free or Die Hard Fantastic Four: Rise of the Silver Surfer The Hills Have Eyes II 2006 Night at the Museum Eragon A Good Year Borat John Tucker Must Die The Devil Wears Prada Garfield: A Tale of Two Kitties X-Men: The Last Stand The Sentinel The Hills Have Eyes
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Post by The Ultimate Nullifier on Jan 20, 2017 12:12:47 GMT -6
www.hollywoodreporter.com/news/treasury-nominee-steven-mnuchins-avatar-profits-shelter-attacked-at-confirmation-hearing-965909At Senate Hearing, Steven Mnuchin Addresses 'Avatar' Profits, Relativity, Hollywood's Chinese Influence Democratic senators express concerns about Mnuchin's investments in films. On Thursday, Steven Mnuchin, the president-elect's nominee to head the U.S. Treasury Department, appeared before the Senate Finance Committee. Although the bulk of the confirmation hearing was expected to focus on his positions on tax reform and his role during the mortgage crisis nearly a decade ago, his Hollywood connections got some heavy attention with an attack on where his hedge fund's profits from Avatar were funneled. Mnuchin, who has invested in dozens of films and is a credited producer on such blockbusters as Batman v. Superman: Dawn of Justice and Mad Max: Fury Road, was called out by Sen. Ron Wyden (D-Ore.) in opening remarks for using "tax tricks" to hide profits from Avatar and other investments in offshore accounts. Wyden (and later other Democrats) also faulted Mnuchin for failing to list his role as a director of the offshore account in initial disclosure forms to the Committee. "I did not use a Cayman Island entity to avoid tax liability for myself," said Mnuchin later in the hearing when asked whether he would support closing offshore tax loopholes and referring to his time running the Dune Capital Management hedge fund, which had a co-financing pact with 20th Century Fox. "The entity was set up to accommodate non-profit and pension funds. They followed the law." He did, however, say that he would work with the Internal Revenue Service and lawmakers to "fix the system." That's not the only aspect of Mnuchin's Hollywood dealings receiving increased attention. Mnuchin’s OneWest bank once invested substantial millions in Relativity Media, and for a time, he served as co-chairman of the Ryan Kavanaugh-led studio. Mnuchin resigned from Relativity weeks before the studio declared bankruptcy in July 2015. After the resignation, but before the Chapter 11 filing, OneWest swept Relativity's bank account for millions, something that was later blamed as one of the reasons precipitating the bankruptcy. Now, the FBI may be investigating Relativity. A few weeks ago, one MuckRock journalist attempted to use the Freedom of Information Act to obtain documents from the government agency on Mnuchin only to receive notice that some documents were being withheld due to an enforcement proceeding. Sen. Sherrod Brown (D-Ohio) put out word on Wednesday that he wants FBI Director James Comey to "release all relevant information on Relativity Media and Mr. Mnuchin." On Thursday, Brown talked of how Mnuchin bought a stake in Relativity and a private jet with Kavanaugh, and how OneWest "pulled out $50 million [from] Relativity accounts, including one earmark for guild expenses that extended wages for contractors Mr. Mnuchin bailed out just before the studio declared bankruptcy." Then, the Ohio senator referred to press reports about the FOIA request and asked Mnuchin whether he had been interviewed by federal law enforcement. Mnuchin responded that he had not been interviewed and assumed that the FBI may have been conducting a background check. "I am not sure why [the FBI] did not approve the [FOIA] issue," said Mnuchin. "We have had no reason to believe it is an issue associated with me." Later, Brown returned to the topic of Relativity, attempting to connect Mnuchin to Chinese investment in Hollywood amid a backdrop of Trump's skepticism towards China. "You were the board member of a company that increased Chinese influence in Hollywood," said Brown. "Were you helping China expand its global power?" "The Chinese never invested in Relativity, and I don't recall them ever having invested in Relativity films," responded Mnuchin. "They had a small joint venture in China that was not particularly successful ... I one hundred percent support the President's view that we need to look at China overall from a trade standpoint and economic standpoint and security standpoint." Before the hearing, Mnuchin attempted to satisfy any ethical issues with his ongoing interest in film profits by announcing the intention to sell his stake in RatPac-Dune Entertainment, which has a deal with Warner Bros. for the financing of 85 films, including 23 future productions. He says he will sell his stake, valued at up to $25 million, within 120 days if confirmed.
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Post by The Ultimate Nullifier on Jan 20, 2017 13:52:38 GMT -6
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Post by The Ultimate Nullifier on Feb 1, 2017 12:59:46 GMT -6
www.bleedingcool.com/2017/02/01/suicide-squad-producer-steve-mnuchin-passes-committee-approval-despite-democrat-boycott/Suicide Squad Producer and Trump Appointee Steve Mnuchin Passes Committee Approval Despite Democrat Boycott In a move that would impress Amanda Waller herself, Senate Republicans have suspended the rules to allow the Senate Finance Committee to approve Donald Trump’s nominees for Treasury and Health secretaries without reaching quorum. The move follows a boycott of the confirmation votes yesterday by Senate Democrats, which blocked either appointee from proceeding to a full Senate vote for confirmation, where they will likely pass under a Republican majority. As Bleeding Cool has reported previously, Treasury Secretary appointee Steve Mnuchin was the executive producer of several DC Comics superhero movies, including Suicide Squad and Superman v. Batman, and his financing company backed Fox’s X-Men movies. Mnuchin isn’t the only person with a background in comic book related entertainment who wields influence with the Trump administration. Marvel Chairman Ike Perlmutter, who was a major backer of the Trump campaign, serves as an unofficial advisor to Trump in a “significant role” on Veteran’s healthcare. Former WWE CEO Linda McMahon, who is currently awaiting a confirmation vote after hers was blocked on Monday, is Trump’s appointee for head of the Small Business Administration. And Disney CEO Bob Iger is a member of Trump’s policy advisory committee, which meets for the first time this week. Mnuchin, along with Health Secretary Tom Price, will proceed to a full Senate confirmation vote next.
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Post by The Ultimate Nullifier on Feb 3, 2017 14:42:13 GMT -6
deadline.com/2017/02/treasury-nominee-steven-mnuchin-targeted-in-relativity-related-lawsuit-1201901907/Treasury Nominee Steven Mnuchin Targeted In Relativity-Related Lawsuit Did Steven Mnuchin help to dupe a bank consortium by persuading it to lend cash to Relativity Media to promote movies — while secretly knowing that it would be used to prop up the struggling studio’s operations before it filed for bankruptcy protection ? That’s the charge that RKA Film Financing makes against President Trump’s nominee for Treasury Secretary and 11 other defendants including Relativity’s Ryan Kavanaugh in a suit filed last night at the New York State Supreme Court. (Read it here.) The suit, alleging fraud and seeking $110 million in damages, revives allegations RKA made at the U.S. Bankruptcy Court after Relativity filed for Chapter 11 protection in July 2015. In 2014 RKA put up $81 million to help finance five Relativity films. But the suit says it later discovered that the cash “was always intended” to pay salaries and corporate expenses, bail out other investors, and “provide Relativity a lifeline to continue operations and attract more unwitting investors.” Mnuchin was Relativity’s Non-Executive Co-Chairman from October 2014 to May 2015, and “had for years shared a close personal relationship with Kavanaugh,” the suit says. It adds that the Trump nominee “knew precisely how Relativity had intended to use these funds [from RKA], and actively conspired to conceal the scheme from RKA.” What’s more, the suit charges that Mnuchin’s bank, OneWest, took $50 million out of the studio in late May 2015, just a few days before “Relativity first notified RKA that it had insufficient cash to fulfill the terms of the forbearance agreements.” Last year Kavanaugh called RKA’s charges “false and outrageous.” On Wednesday the Senate Finance Committee supported Mnuchin’s nomination, giving the full Senate a chance to vote on whether to confirm. Democrats on the committee complained that the nominee, at a January 19 hearing, provided incomplete and misleading answers to questions about mortgage foreclosure practices at OneWest — which Mnuchin ran from 2009 to 2015. They boycotted a committee meeting to approve Mnuchin’s nomination. Republican members prevailed after suspending a rule that requires at least one member of each party to be present at each meeting.
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Post by The Ultimate Nullifier on Feb 3, 2017 16:43:32 GMT -6
www.hollywoodreporter.com/thr-esq/trump-treasury-nominee-stephen-mnuchin-dragged-back-fraud-lawsuit-relativity-971784Trump Treasury Nominee Steven Mnuchin Dragged Back Into Fraud Lawsuit Over Relativity RKA claims he siphoned off $50 million from the studio when it owed money. Steven Mnuchin, selected by Donald Trump to be the head of the Treasury Department, has made it past the Senate Finance Committee and barring something unforeseen, appears primed to be confirmed by a Republican-led Congress. But before that happens, Mnuchin is once again facing fraud claims for his time at Relativity Media, the much-hyped film studio that emerged from bankruptcy last year only to hit more trouble after the flops of Masterminds and The Disappointments Room. The lawsuit comes from RKA Film Financing, which loaned Relativity tens of millions of dollars for print and advertising ("P&A") expenses. The plaintiff first filed suit against Relativity CEO Ryan Kavanaugh in July 2015, and after Relativity declared Chapter 11, amended the complaint to name as defendants some of Relativity's biggest backers including Colbeck Capital, its former co-chairman Mnuchin, and several other former officers at the company. In perhaps simplest terms, the lawsuit claims that money loaned for P&A was instead used either for personal benefit or for Relativity's general purposes. One of RKA's problems almost from the get-go in drawing up the complaint, though, was that Relativity itself was not a defendant. And thanks to the bankruptcy, suing Relativity for contract breaches wasn't much of an option. So RKA tried to steer its various claims outside the contours of a contract to pin blame for lost money on those individuals connected with Relativity who had allegedly made various misrepresentations. At a hearing in October, New York Supreme Court Justice Charles Ramos called the complaint a "mess," and told the plaintiff that he couldn't distinguish one defendant from the other. But in dismissing the complaint, the judge did allow RKA's attorneys at Latham & Watkins to have a "last shot" at repleading, warning, "It better be specific." Thus comes a new 38-page version of the complaint, which describes "three phases" of an allegedly fraudulent scheme and is dressed up with multiple charts describing each of the defendants and their supposed misrepresentations matched with "reality." From a big picture standpoint, RKA claims that defendants, to induce funding a P&A facility, weren't honest about Relativity's health, operations, riskiness and future business plans. As for Mnuchin, who had a successful and controversial career in banking before becoming a big player in Hollywood (requiring significant divestments to become Treasury Secretary), the complaint addresses the moves he made to allegedly "siphon off $50 million from Relativity" at a time when it was having trouble repaying RKA. Mnuchin's OneWest bank had made about $160 million in financial commitments to Relativity five years ago, and according to the complaint, he had shared a "close personal relationship with Kavanaugh," including registering a company to co-own a private jet. It's claimed that around August 2014, Mnuchin began conducting further due diligence of Relativity's finances and got an opinion from the law firm of Jones Day about Relativity's debt facilities. That October, Mnuchin became Relativity's co-chairman. As such, he's described as having had inside access to how Relativity used its P&A facility. The complaint then quotes Mnuchin's Jan. 19, 2017 testimony to the U.S. Senate during his confirmation hearing to become Treasury Secretary that he may have "sat in with management in certain meetings to solicit potential investors in Relativity." But it's not just a claim that he and others at Relativity induced investments from RKA with knowledge of financial troubles and without sharing such information as the Jones Day report; the lawsuit also discusses what happened after May 29, 2015, the day that Mnuchin resigned as co-chairman. "One day later—on May 30, 2015— a loan from OneWest came due," states the amended complaint. "Relativity defaulted on that loan, and Mnuchin immediately began seizing approximately $50 million from Relativity’s accounts to recoup his bank’s loan to Relativity. Specifically, Mnuchin caused OneWest to 'sweep' Relativity’s accounts with full knowledge that the siphoned funds (i) included a substantial portion of RKA’s P&A funds and (ii) had been misappropriated. To be sure, Mnuchin’s resignation from Relativity’s Board a single day before this misappropriation was intended to make the 'sweeps' look legitimate. OneWest did not lose money when Relativity declared bankruptcy." Relativity's Chapter 11 filing happened on July 30, 2015, just a few weeks after Mnuchin's resignation and Relativity telling RKA that it had insufficient cash to fulfill the terms of a forbearance agreement. "Throughout June 2015, RKA maintained near-daily communication with Relativity, which repeated that Kavanaugh was close to obtaining additional financing," continues the complaint. "The true, undisclosed purpose of these lies was to allow Mnuchin to further misappropriate RKA’s funds." The allegation section of the complaint concludes by discussing a press statement that Kavanaugh issued on Jan. 22, 2016, which was at the time promulgated for the purpose of demonstrating why RKA's allegations were "baseless and totally without merit." Kavanaugh explained that the agreement with RKA was one for a "working capital facility" and that it was structured the same way as Relativity's previous working capital facilities. The press release also came forward with the revelation that "when Steven Mnuchin joined as Co-Chairman of Relativity and made a sizable investment in the company, as part of his diligence he asked Relativity's counsel, Jones Day, to provide an opinion on all of the company's debt facilities, including the RKA facility. Jones Day provided the opinion that the facility may be used for working capital." RKA asserts that this wasn't the purpose of its funding and that it was never told about the Jones Day opinion justifying a larger use of its money. Thus, it claims that Kavanaugh "conceded that the Defendants defrauded RKA." We've reached out to Kavanaugh will provide any statement that come. Mnuchin spokesman Barney Keller responded to the amended complaint. "The claims against Steven Mnuchin are the same frivolous claims that were previously rejected by the court," said Keller. "RKA never once spoke with, corresponded with or otherwise dealt with Mr. Mnuchin. RKA's allegations are preposterous, don't deserve coverage...and Mr. Mnuchin's inclusion in this complaint is gratuitous and insulting. On November 12th Mr. Mnuchin’s counsel wrote to RKA and warned them that if they re-asserted these baseless claims against Mr. Mnuchin, he would seek sanctions from the court. Mr. Mnuchin intends to follow through on that warning.”
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Post by The Ultimate Nullifier on Feb 3, 2017 17:26:19 GMT -6
variety.com/2017/biz/news/steve-mnuchin-fraud-claim-relativity-media-1201977781/Steve Mnuchin Faces Fraud Claim Related to Relativity Media Steve Mnuchin may be headed for U.S. Senate approval as America’s next treasury secretary, but he’s getting a big thumbs down from a film lending company that alleges in a lawsuit that the Wall Street and Hollywood financier helped cheat it out of more than $80 million. In a legal filing late Thursday, RKA Film Financing accused Mnuchin and eight others of allowing money intended to release films from Relativity Media to be misspent for other purposes. Some $50 million of the misspent money went to a bank that the treasury secretary-designate founded, the lawsuit contends. Mnuchin served as co-chairman of the financially-struggling, Beverly Hills-based Relativity at the same time he was chairman and CEO of Pasadena-based OneWest Bank. The lawsuit by RKA Film Financing alleges a suspicious chain of events in which Mnuchin and the other defendants purportedly allowed millions of dollars to be directed away from film promotion, before allowing the funds to be “swept” by OneWest, “in order to obtain and misappropriate the proceeds of the fraud.” According to the lawsuit, the money began to flow to Mnuchin’s bank on May 30, just one day after he resigned from the board of Relativity Media. “To be sure, Mnuchin’s resignation from Relativity’s Board a single day before this misappropriation was intended to make the ‘sweeps’ look legitimate,” the lawsuit says. But the court action notes that OneWest Bank “did not lose money when Relativity declared bankruptcy,” two months later. Other creditors were out hundreds of millions of dollars. The amended lawsuit comes several months after Charles Ramos, a Supreme Court judge in New York, rejected RKA Film Financing’s original complaint. The judge allowed the plaintiff to submit a revamped set of allegations. “The claims against Steven Mnuchin are the same frivolous claims that were previously rejected by the court,” Mnuchin spokesman Barney Keller said in a statement Friday. “RKA never once spoke with, corresponded with or otherwise dealt with Mr. Mnuchin. RKA’s allegations are preposterous, don’t deserve coverage in Variety, and Mr. Mnuchin’s inclusion in this complaint is gratuitous and insulting.” Mnuchin’s lawyer previously wrote Judge Ramos to say that he would seek sanctions against RKA Film Financing if the firm continued to make “baseless claims” against Mnuchin. “Mr. Mnuchin intends to follow through on that warning,” Keller said. Variety first reported in 2015 on the dispute over the money loaned to Relativity for film distribution. Other creditors in the company’s bankruptcy said at that time they were disturbed that — while they got little or nothing — a bank Mnuchin founded was able to recover $50 million that it loaned the struggling movie company. Also named in the lawsuit were Relativity founder Ryan Kavanaugh, several of his one-time executives and two other investors who also served on the company’s board of directors. The amended complaint says that Relativity drew down $73.6 million in funds, ostensibly to release and publicize four films — “Masterminds,” “Before I Wake,” “Solace” and “The Disappointments Room.” But only $1.7 million of the money went to P&A for the films. Three of the films flopped at the box office, while “Before I Wake” remains on the shelf, after several release dates came and went. The rest of the $73 million money went to general overhead for the company, including paying salaries, and to other obligations, including repaying the loan to Mnuchin’s bank, the lawsuit contends. That violated the terms of the loan, RKA contends. The lawsuit says that Kavanaugh put out a press statement, saying Relativity was free to use the money for other purposes. The Relativity statement read, in part: “When Steven Mnuchin joined as Co-Chairman of Relativity and made a sizable investment in the company, as part of his diligence he asked Relativity’s counsel, Jones Day, to provide an opinion on all of the company’s debt facilities, including the RKA facility. Jones Day provided the opinion that the facility may be used for working capital and was and had been used in accordance with all documentation.” The lawsuit depicts Kavanaugh, 41, and Mnuchin, 54, as close friends who socialized regularly and even registered to co-own a three-engine Dassault Falcon jet. It says that Mnuchin’s bank eventually invested $160 million in Relativity. Kavanaugh’s company emerged from Chapter 11 bankruptcy last April. But it has not been able to attract enough new capital to make and distribute movies. Most of the staff has been put on long-term furlough and those that remain now face possible eviction from their Beverly Hills office, because of unpaid rent. Mnuchin passed a preliminary committee vote in the Senate to be confirmed as President Trump’s treasury secretary. His vote could come before the full Senate as soon as next week. Most of the tough questioning of the nominee in the Senate has centered on OneWest Bank’s use of subprime mortgages and the resulting evictions of many home buyers. But there were also questions about Relativity Media and, before the hearings, Sen. Sherrod Brown (D-Ohio) asked FBI director James Comey for information on Relativity and Mnuchin’s relationship. There is reason to believe questions about their interaction have been brought to federal investigators because a nonprofit watchdog group, MuckRock, previously filed a Freedom of Information Request on the topic. The FBI rejected the information request, citing concerns that the disclosure would “interfere with enforcement proceedings.” No more information has been revealed about the nature of those proceedings.
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Post by The Ultimate Nullifier on Mar 9, 2017 20:08:05 GMT -6
www.hollywoodreporter.com/thr-esq/treasury-secretary-steven-mnuchin-wants-relativity-fraud-suit-984943Treasury Secretary Steven Mnuchin Wants Out of Relativity Fraud Suit Ryan Kavanaugh also says he shouldn't be involved in the dispute. Steven Mnuchin is now officially the U.S. Treasury Secretary, and his attorneys are asking the court to dismiss him from a financial fraud lawsuit that's tied to his stint at Relativity Media. RKA Film Financing claims it loaned Relativity millions to pay print and advertising costs, but the money was used for other purposes. It also claims it was misled into believing the company was in good financial health. Relativity itself isn't a defendant — but Mnuchin, CEO Ryan Kavanaugh and a handful of others are being sued for fraud. Among other things, RKA claims Mnuchin knew Relativity would treat RKA's money like a "slush fund" and "actively conspired" to conceal it. "Because Mr. Mnuchin did not interact with RKA during his short tenure on Relativity’s Board from October 2014 to May 2015, he cannot as a matter of law be held liable for the tortious conduct of others at Relativity 'unless [he] personally participate[d]' in, 'or ha[d] actual knowledge of' that conduct when it occurred," writes attorney Robert Sacks in a Tuesday motion. RKA also claims Mnuchin siphoned off $50 million of Relativity's money to pay back his own company's investment in the studio before it declared bankruptcy. Sacks argued in a prior motion that the company, OneWest, was exercising its contractual rights to recover the money it was owed after Relativity defaulted on its loan and RKA has not presented any facts that suggest OneWest's actions were improper and that Mnuchin is liable for them. Sacks is also seeking sanctions against RKA for "reasserting its baseless claims" against Mnuchin after the court dismissed the previous version of the complaint in October. "This Court never invited RKA to replead a frivolous claim; indeed, it cautioned RKA not to do so," writes Sacks. "'Naming all conceivable parties and subjecting them to extensive litigation expenses,' as RKA has attempted to do here with respect to Mr. Mnuchin, 'cannot be tolerated' and warrants sanctions." Kavanaugh also thinks he should be dismissed from the suit. In a motion filed Tuesday, attorney Jonathan Frank argues that, while the second amended complaint tones down the "vitriol and invective" present in the first two iterations, RKA still has failed to state a plausible fraud claim. "All RKA has done is to take the same breach of contract claim — that it was promised money would be used one way, but it instead was used in another way — and restate it multiple times and in different words," writes Frank. "But, no matter how many ways and times RKA attempts to rephrase its claim, the end result is the same — a contract claim against an entity cannot be converted into a fraud claim against the entity's officers." Further, Frank argues dismissal is appropriate because RKA was a sophisticated lender that was represented by sophisticated counsel — and says the company was perfectly happy with the relationship and the use of its funds until Relativity ran into financial trouble. "Only when Relativity began to experience financial difficulties did RKA begin singing a different tune — one designed to unfairly place it in a better position than Relativity's other creditors and, apparently, to mislead the investors in the underlying RKA funds as to the understanding of RKA's managers of the loan terms," writes Frank. "RKA's efforts to improve on its recovery in Relativity's bankruptcy process by asserting legally defective claims against Relativity's officers and directors should not be countenanced."
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Post by The Ultimate Nullifier on Jun 28, 2017 13:13:34 GMT -6
www.hollywoodreporter.com/thr-esq/steven-mnuchin-escapes-film-finance-fraud-suit-1017429Steven Mnuchin Escapes Film Finance Fraud Suit "Mnuchin's personal friendship with [Ryan] Kavanaugh is insufficient to establish awareness or liability," writes justice Charles Ramos. U.S. Treasury Secretary Steven Mnuchin is clear of a fraud lawsuit that he was dragged into because of his business dealings with Relativity Media, after a New York Supreme Court justice granted a motion to dismiss him from the complaint on Tuesday. In 2015 RKA Film Financing sued Ryan Kavanaugh, Mnuchin and several other individuals, claiming it was misled into lending Relativity tens of millions of dollars for print and advertising expenses and its money was misappropriated. Mnuchin's OneWest bank committed about $160 million to Relativity years ago, which eventually led to his joining the board as co-chairman. RKA claims he was aware its funds were being misappropriated, especially since he had a "close personal relationship" with Kavanaugh. Mnuchin in March asked the court to dismiss him from the suit, arguing that because he didn't interact with RKA during his short stint as a Relativity board member he can't be liable for the conduct of others at the company. "RKA alleges that Mnuchin learned of Kavanaugh's scheme to market a supposedly low risk P&A facility to investors and to subsequently misappropriate those funds during his time as a non-executive director of Relativity," writes justice Charles E. Ramos. "However, absent substantive allegations that Mnuchin was responsible for, aware of, or participated in the purported fraud surrounding the Funding Agreement, liability cannot attach. ... Further, RKA does not sufficiently establish that Mnuchin was aware of the alleged misrepresentations and their implications. Mnuchin's personal friendship with Kavanaugh is insufficient to establish awareness or liability." Ramos also found that even if Mnuchin had knowledge of purported misconduct regarding the agreement, RKA failed to show he had a duty to disclose that information to RKA. "Absent a fiduciary or heightened duty, Mnuchin had no obligation to disclose the purported misconduct surrounding the Funding Agreement or the subsequent payments relating to it," writes Ramos. "In any event, RKA does not allege that he was privy to it." Mnuchin had also asked the court to issue sanctions against RKA for costs and fees, but the court denied that request finding that they were "unwarranted absent evidence of frivolous conduct."
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Post by The Ultimate Nullifier on Aug 18, 2017 19:49:29 GMT -6
variety.com/2017/biz/news/steve-mnuchin-yale-classmates-urge-resign-1202533376/Steve Mnuchin’s Former Yale Classmates Urge Him to Resign From Treasury Over 300 of Steve Mnuchin’s Yale University Class of 1985 classmates have signed a letter asking him to resign as Secretary of the Treasury in response to President Donald Trump’s comments on recent events in Charlottesville. The letter, which was posted on lettertostevemnuchin.com, addressed Yale’s legacy of graduates serving as presidents, members of the cabinet, and in many other government capacities. Though they rarely, if ever, have requested a classmate step down, regardless of differences in political opinion, his classmates contested Mnuchin’s political alignment doesn’t reflect the ivy league college’s values. “We do so today because President Trump has declared himself a sympathizer with groups whose values are antithetical to those values we consider fundamental to our sacred honor as Americans, as men and women of Yale, and as decent human beings,” the letter reads. “President Trump made those declarations loudly, clearly, and unequivocally, and he said them as you stood next to him.” The class members boast an inclusive range of political backgrounds, but said they cannot condone Nazis and white supremacists. “We can disagree on the means of promoting the general welfare of the country, on the size and role of government, on the nature of freedom and security, but we cannot take the side of what we know to be evil.” The letter ended with a plea for action. “We call upon you, as our friend, our classmate, and as a fellow American, to resign in protest of President Trump’s support of Nazism and white supremacy. We know you are better than this, and we are counting on you to do the right thing.” The full letter can be read below: Dear Secretary Mnuchin: We, some of your fellow members of the Yale College Class of 1985, write to you today in response to President Trump’s comments on the recent events in Charlottesville. We believe it is your moral obligation to resign your post as Secretary of the Treasury, effective immediately. We understand that graduates of Yale College have served the United States proudly as presidents, members of the cabinet, and in many other capacities since its founding, and that rarely, if ever, have any of us made such a request of a classmate, whatever our differences in political opinion have been. We do so today because President Trump has declared himself a sympathizer with groups whose values are antithetical to those values we consider fundamental to our sacred honor as Americans, as men and women of Yale, and as decent human beings. President Trump made those declarations loudly, clearly, and unequivocally, and he said them as you stood next to him. We can be Republicans, Democrats, Libertarians, Greens, and a number of other things and still be friends, classmates, and patriots, but we cannot be Nazis and white supremacists. We can disagree on the means of promoting the general welfare of the country, on the size and role of government, on the nature of freedom and security, but we cannot take the side of what we know to be evil. We call upon you, as our friend, our classmate, and as a fellow American, to resign in protest of President Trump’s support of Nazism and white supremacy. We know you are better than this, and we are counting on you to do the right thing. Your fellow members of the Yale College Class of 1985,
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Post by The Ultimate Nullifier on Sept 13, 2017 20:23:31 GMT -6
deadline.com/2017/09/steve-mnuchin-treasury-secretary-relativity-fraud-suit-appealed-1202169426/Treasury Secretary Steve Mnuchin’s Dismissal from Relativity Fraud Suit Appealed The dismissal of Treasury Secretary Steven Mnuchin from a Relativity-related fraud suit is being appealed by RKA Film Financing, a bank consortium that’s seeking $110 million in damages from investments with the studio that failed to pan out. In a pre-argument filing with the Supreme Court of New York last month, but which has only become public now, RKA claims that the state’s high court erred in granting Mnuchin’s motion to be dismissed from the lawsuit. See it here. pmcdeadline2.files.wordpress.com/2017/09/mnuchin-1.pdfIn a suit filed shortly after he was confirmed as Secretary of the Treasury, RKA claimed that Mnuchin and 11 others at Relativity, including CEO Ryan Kavanaugh, duped the consortium of lending the studio $81 million to help finance five films. RKA claimed that Mnuchin and the other defendants secretly knew that the cash would be used to prop up the struggling studio’s operations before it filed for bankruptcy protection. The state’s Supreme Court, however, dismissed Mnuchin from the case in June, finding that RKA had failed to prove that Mnuchin “was responsible for, aware of, or participated in the purported fraud,” and that his “personal friendship with Kavanaugh is insufficient to establish awareness of a liability.” In its notice of appeal, RKA argued that the high court erred as a matter of law by failing to consider the specific allegations pleaded in the second amended complaint that demonstrated Mnuchin’s “awareness of and participation in the fraud, including by virtue of his position as co-chairman of Relativity’s board,” that he was “intimately involved in Relativity’s financial decisions and transactions,” and that his “knowledge of and participation in the fraud can be inferred through Mnuchin’s position as co-chairman of Relativity’s board while the fraud was ongoing.” See the notice of appeal here. RKA also argued that the court erred in dismissing Mnuchin from the lawsuit “because if failed to accept the facts as alleged in the second amended complaint as true and determine only whether the facts as alleged fit within any cognizable legal theory.” The news appeal was first reported in the Daily Mail. RKA further argued that court erred “because it failed to accord plaintiff the benefit of every possible favorable inference drawn from the facts pled in the second amended complaint,” and by concluding that that Mnuchin would have had to have made a misstatement to participate in the fraud.
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