Morgan Stanley wealth manager wins fight over condo tied to 1MDB
A MORGAN Stanley wealth manager can keep a luxury Manhattan penthouse he picked up at a discount after it was seized as part of the 1MDB money-laundering scandal.
The US Marshals Services sold the confiscated Walker Tower condo in Chelsea to Ron Vinder for US$18.25 million in 2020. That set off a battle with the tower’s condo board, which voted to void the sale and sued to eject Vinder and his family from the building.
The US seized more than US$1 billion in assets tied to the 1MDB scandal. The Malaysian fund that was created to promote economic development was looted of more than US$4.5 billion, with high-level officials using the money to buy real estate and other luxuries and even invest in Hollywood films.
The Walker Tower board claimed its bylaws gave it the right of first refusal on any condo sale in the building. It also claimed the unit was sold at a 64 per cent discount.
New York Superior Court Justice Paul Goetz dismissed the condo board’s complaint on Friday (Jun 17). He concluded that it was flawed because it didn’t include the US government as one of the parties. Naming the government was necessary because it had a stake in the case as it would once again be the condo’s owner if Vinder were evicted, he said.
“We are grateful that the court has rejected plaintiffs’ unfounded efforts to evict our client from his home,” Vinder’s lawyer Marc E Kasowitz said in a statement.
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Lawyers for the condo board didn’t return a request for comment after hours Friday. BLOOMBERG
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