According to court documents obtained by CBC News, U.S. prosecutors in the Southern District of New York hope to confiscate five California properties related to Peter Nygard, including Marina Delray’s apartment, where the fashion mogul held a so-called “indulgent party”. .
The U.S. Attorney for the Southern District of New York, Audrey Strauss, submitted a detailed list of confiscations (a court application listing the property the government wants to confiscate) on April 29 as a countermeasure against Peter. Part of Nigard’s criminal case. The detailed information sheet was only released to the public in late May.
The government is requesting the court to authorize the seizure of the property it purports to belong to Edson’s Investments Inc. and Brause Investments Inc., which Strauss claims are controlled by Nygard.
Nigard, 79, was arrested in Winnipeg in December 2020 and is still at the Headingley Correctional Center in the west of the city.
The court documents were part of the government’s extradition to New York, where he was charged with multiple crimes, including sex trafficking and racketeering.
The extradition case is scheduled to be heard in the Manitoba court in November.
Nygard’s name does not appear in any company documents of Edson’s and Brause, but his two former company executives-Tiina Tulikorpi and David Paton-are listed as directors.
In previous court documents, Strauss stated that the evidence collected through the execution of the search warrant showed that these companies are all connected and that Nygard controls them.
“For example, Nygard’s corporate email indicated that Nygard controls Edson’s account and instructed the money to be transferred between Edson’s account and others,” Strauss wrote in the court documents for the extradition case.
Strauss said Nigard has been liquidating assets for months and has been using senior management to do this.
“In the past few months, certain U.S. entities controlled by Nygard have sold some real estate assets in California for a total of nearly $70 million. [US],” she wrote.
Nygard does not own and operates a company: lawyer
The lawyer representing Edson’s and Brause said that Nygard does not own or operate Edson’s or Brause.
Domenico Magisano declined to say whether the two companies plan to fight the detailed list of US seizures.
The list of properties the US government hopes to confiscate includes Nygard’s apartment on Marina del Rey Yawl Street. It is known that he organizes “pampering parties” on Sundays—inviting girls and women to spa treatments, free food and dancing.
Watch | The 2018 video posted to Facebook shows that Peter Nygard participated in the “Doting Party”:
In February 2020, New York filed a class action lawsuit accusing Nygard of sexually assaulting some alleged victims in these incidents. The court documents also accused Nygard of enticing underage girls and women to join parties by promising them profitable modelling opportunities.
Before the criminal case against Nygard was closed, the class action was put on hold.
The US government is also seeking to seize 9450 Topanga Canyon Blvd. And 13700-13704 Saticoy St.’s statement of forfeiture in California.
Each of these properties was once owned by Edson’s, but was later sold to other companies associated with Nygard.
A property profile obtained by CBC News shows that in 2015, Edson’s sold them to 9450 Topanga LLC and 13700 Saticoy LLC.
These same documents also show that in March 2020, the Nygard Foundation-a charity registered in Barbados specializing in stem cell research-registered more than $10 million in mortgage loans on properties in Topanga and Saticoy.
Alex Zsadanyi is the project manager of West Coast Construction and Operations for Topanga Properties, LLC and Satcoy, LLC.
He said that he started working for Edson’s on January 16, 2018 and was responsible for the project management of 9450 Topanga Canyon Blvd.Chatsworth, California
Zsadanyi said that before he took over, a fire broke out in one of the properties, and his job was to sort out insurance claims, obtain funds and arrange for the reconstruction of the building.
An information statement submitted to the California Secretary of State on June 29, 2020 (a document detailing the company information that must be submitted regularly) shows that Edson is the manager of Saticoy LLC.
Although company documents indicated that former Nygard executive Greg Fenske was the chief executive of the two limited liability companies, Zsadanyi stated that Nygard was the one who gave the order.
“Greg Fenske is running Edson, and I’m right below him,” Zadani said.
Nygard executives deny involvement in Edson
At Nygard’s bail hearing in February, Fenske claimed that neither he nor Nygard was involved in Edson’s case.
He testified that Edson’s was spun off from the Nygard group of companies a few years before his involvement. He said he did not know who controls it or who all the directors are. He stated that the company is owned by the trust and was told that Nygard does not own the trust.
“I don’t know how much happened to Edson and Blaus,” Finske said when he testified in February.
The email provided by Zsadanyi shows that Fenske uses many email addresses, including [email protected], as well as Gmail and nygard.com accounts. These emails also indicate that Fenske is circulating in Nygard.
“Peter is the one who is really in charge. But on paper, Greg Fenske is in charge, and then [Nygard executives] Tina [Tulikorpi] Angela [Dyborn],” Zadani said.
He said that Tullikorpi and Dyborn-Nygard’s niece-were involved in Edson’s and its affiliates Saticoy and Topanga LLCs, but they both had to get permission from Nygard to do anything.
“If they want to do something or pay for something, even if there is nothing in Peter Nigad’s name, they must call Peter Nigad directly and get Peter Nigad’s approval before they can buy it. Things may cost money,” Zsadanyi said in an interview with CBC News.
He said that after nine Nygard companies entered the bankruptcy process in March 2020, he was instructed to open a new email address to communicate with Fenske and Nygard.
“We have to open new emails, new phone numbers,” he said.
The documents submitted to the California Secretary of State show that the manager of Saticoy LLC was changed to Greg Fenske’s NBH LLC sometime before February 19, 2021.
Edson’s lawyer Magisano said that Nygard did not receive financial benefits from the company’s operations.
“Mr. Nygard is not the beneficial owner of Edson’s and Brause. He does not control these companies and cannot obtain company funds,” he wrote in an email to CBC News.
However, Edson’s July 2019 company documents listed 1771 Inkster Blvd. — the Winnipeg headquarters of Nygard — as the company’s mailing address.
Nygard executives Tiina Tulikorpi, Angela Dyborn and James Bennet are listed as executives. Scarlet, Nygard’s daughter, is listed as a director.
As of March 2021, Dyborn and Scarlet no longer appear in company documents. They regard former Nygard company executive David Paton as Edson’s chief executive officer and Tulikorpi as a director.
“Money ends with him”: Nigard accuser
KC Allan is a former Winnipeg. He said that Nygard raped her in the 1970s. He thinks that Nygard has set up a company shell game to hide his money so that only he can fully control it.
Allen said in a telephone interview with CBC News: “I think everyone in him thinks he will leave eventually, but this may be a very expensive long-term effort.”
For many years, Nygard has been represented by Jay Prober, the sole practitioner in Winnipeg. But since his arrest in December 2020, Nigard has added some well-known lawyers to his legal team.
Allan believes this is part of the reason why Nygard may liquidate its assets.
“I think this is the moment when he realizes that the World Jungle League Jay detector will not keep him away from federal prisons,” Allen said.
She said: “At his age, the monthly legal fees he pays will exceed most of us’s annual income.”
Representatives of Nygard did not answer questions about the allegations contained in this story.
Allan believes that Nygard doesn’t think he has done anything wrong, so she won’t be surprised if she intends to use his offshore funds to rebuild his business after the criminal case is over.
“This is not the one who built the f-king empire…this is not [Amazon CEO Jeff] Bezos, or, you know, [Hollywood mogul Steven] Spielberg, even. It’s like, money ends with him,” Allen said.
“There will be no company. So he will not save resources for a new future. You know, he is saving resources to fight for his own way out. He is not worried about whom you will eventually pay.”