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Billionaire Ira Rennert will pay $213 million in damages for funneling company money into his massive Hamptons home

Mar 18, 2015, 00:50 IST

Junk bond billionaire Ira Rennert, whom investors have sued for using company funds to build his giant Hamptons estate, will have to pay back more than $200 million in damages, Crain's Aaron Elstein reported Monday.

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A NYC judge previously ruled for Rennert to pay creditors $118 million plus interest. Interest landed at little under $100 million, bringing the total amount due to $213 million.

"We are disappointed by the ruling today. However, the jury verdict, which found that Renco Metals was solvent according to each test under the law and that Mr. Rennert acted in good faith, remains fundamentally irreconcilable. We are vigorously pursuing all avenues to have the verdict and the damages award completely vacated," a Renco spokesman said in a statement to Business Insider.

Rennert stands accused of looting millions from the mining company Magnesium Corporation, owned by Rennert's holding company Renco Group. The money allegedly came from issuing more than $100 million in MagCorp bonds, which instead went to Renco and the billionaire's estate.

The Sagaponack mansion in question is one of the largest homes in the U.S. at 62,000 square feet and 29 bedrooms. Rennert got his start in junk bonds and has an estimated net worth of $6.1 billion today, according to Forbes.

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Read more at Crain's >>

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