Kimora Lee Simmons argues against fraud claims in Russell Simmons lawsuit
Russell says he tried to sort out the matter privately and when that failed, he took legal action
Kimora Lee Simmons says her ex-husband Russell Simmons has no proof to back up his claims that she and her current husband stole from him.
Russell alleges Kimora and her husband Tim Leissner stole from him to cover their massive legal expenses, Radar reported. Per the report, “Russell has accused his former wife of stealing his shares from an investment to pay her new husband’s legal fees and has filed a lawsuit against the mother of his two children and her husband.”
As theGrio previously reported Russell’s lawsuit against his ex-wife is linked to Celsius, a drink company they both invested in. Russell claims Kimora used shares as “collateral for a bond connected to federal charges against Leissner.”
In 2018, Forbes reported that Leissner, a former investment banker for Goldman Sachs, was charged with money laundering and pleaded guilty to criminal conspiracy to violate the Foreign Corrupt Practices Act. In November of that year, he agreed to pay $43.7M into a victim’s compensation fund, according to the report.
In his suit, Russell’s lawyer wrote, “Knowing full well that Defendant Leissner would need tens of millions of dollars to avoid jail time, stay out on bail and forfeit monies for victim compensation, Defendants engaged in this blatant fraud to achieve that nefarious and unlawful goal.”
Russell allegedly tried to sort out the matter privately and when that failed, he took legal action. The disgraced mogul says his shares have been frozen by the government amid Leissner’s legal drama.
Kimora countered Russell’s allegations, claiming she and Leissner were “authorized” to use the shares. According to court documents obtained by Radar, the Baby Phat founder says Simmons can not prove his fraud allegations so she wants his lawsuit dismissed.
Kimora and Leissner previously reacted to the complaint in a statement obtained by PEOPLE which read, “Kimora and her children are shocked by the extortive harassment coming from her ex-husband, Russell Simmons, who has decided to sue her for shares and dividends of Celsius stock in which Kimora and Tim Leissner invested millions of dollars…this is an ill-advised attempt by Russell to use the legal system to access funds he is in no way entitled to, and which his own legal team confirms Russell did not pay for.”
“Russell’s continued aggressive behavior not only blatantly distorts the facts, but is simply a desperate PR ploy ignoring the years of mental and emotional anguish, gaslighting, and ongoing harassment he has inflicted on Kimora,” the statement continued.
In newly filed documents, Kimora’s lawyer said: “At the time Defendants used the Celsius shares for purposes of the bond in connection with the federal case, Lee understood and believed that Defendants were authorized to use the shares for the bond.”
According to Kimora, the shares are temporarily being held by the government as collateral for her husband’s bond and will be returned.
Russell and Kimora were married from 1998 till 2009.
This story contains additional reporting from theGrio’s Jared Alexander.
Have you subscribed to theGrio’s “Dear Culture” podcast? Download our newest episodes now!
TheGrio is now on Apple TV, Amazon Fire and Roku. Download theGrio.com today!
More About:Entertainment
You Might Like
