Harvey Weinstein says he was duped into guaranteeing US$45M loan, sues brother and other movie execs

FILE — Miramax co-founders Harvey Weinstein, left, and his brother Bob Weinstein, right, pose with "Sin City" co-director Robert Rodriguez, March 28, 2005 in Los Angeles. (AP Photo/Chris Pizzello. File)

Jailed and disgraced movie mogul Harvey Weinstein alleges in a new lawsuit that his brother, Bob Weinstein, and other executives at their now-defunct film company duped him into guaranteeing a US$45 million loan in 2016, but diverted funds for their own personal use while setting the stage for his downfall.

Harvey Weinstein, 72, filed the claims Thursday in a long-running civil case in New York City involving a lender accusing him of defaulting on the loan. He is currently detained while awaiting a retrial on sex crimes charges in New York.

“Harvey Weinstein was deceived by those closest to him, and secured a US$45 million dollar loan under the pretense of saving The Weinstein Company,” Imran Ansari, Harvey Weinstein’s lawyer, said in a statement. “While Harvey personally guaranteed the loan, others within The Weinstein Company enriched themselves and strategically undermined him, leaving him ‘holding the bag’ of debt while ‘lining their pockets’ when the company was in crisis.”

Ansari alleged Bob Weinstein and others at The Weinstein Co. were in on a plot to position Harvey Weinstein for a downfall in an attempt to seize control of the company, which went bankrupt in 2018 as the sexual misconduct scandal surrounding Harvey Weinstein exploded.

An attorney for Bob Weinstein, Brian Kohn, replied with a brief statement Friday saying, “Harvey’s allegations are entirely without merit,” in an email to The Associated Press.

Former Weinstein Co. chief operating officer David Glasser, now chief executive of 101 Studios, known for its production of Paramount’s popular series “Yellowstone,” is also named in Harvey Weinstein’s lawsuit. He did not immediately return a phone message left at his office Friday.

AI International Holdings loaned the money to two affiliates of The Weinstein Co. and Harvey Weinstein, and later sued when it said they defaulted.

Harvey Weinstein alleges that his brother, Glasser and others duped him into guaranteeing the US$45 million loan by saying the money would help the financially struggling company. Instead, his lawsuit says, they diverted millions of dollars from the company for improper purposes, leaving it short on cash and Harvey Weinstein liable for repaying the loan.

“As a direct result of these actions, the Companies were drained of, at the very least, US$12 million in cash that should have been allocated to repay the Loan owed to AI International,” the lawsuit says. “This mismanagement left the Companies unable to satisfy their financial obligations, resulting in insolvency and placing Weinstein at substantial personal financial risk as the guarantor of the Loan.”

The lawsuit, filed in the state Supreme Court in Manhattan, says Weinstein was made to suffer “severe and outrageous financial and reputational harm.”

It also makes several allegations of financial misconduct against Bob Weinstein, Glasser and others.

It accuses Bob Weinstein of withdrawing at least US$6 million from company accounts under false pretenses, to give himself priority over creditors including AI International.

“It was shocking to discover the fraudulent transactions that went on after I left the company. I now believe that a number of these executives played a big part in my demise,” Harvey Weinstein said in a statement provided by a spokesperson.

The lawsuit alleges Glasser approved and received US$5 million in excessive bonuses and unauthorized financial transactions, and used company funds to pay his father US$1 million despite no legitimate business reason.

AI International Holdings sued Harvey Weinstein and the two affiliates of The Weinstein Co. in late 2017. The lawsuit said they defaulted on the loan after AI International had ordered the entire balance to be paid immediately because Harvey Weinstein had been dismissed as co-chairman amid the sexual misconduct allegations.

According to Harvey Weinstein, Bob Weinstein and Glasser settled their liability for the loan with AI International for about US$15 million due to “bad faith negotiations,” leaving Harvey Weinstein responsible for the remaining US$30 million plus interest.

Harvey Weinstein’s lawsuit seeks to shield him from any financial liability for the loan, as well as punitive damages for alleged fraud and financial misconduct and his legal fees.

Bob Weinstein recently asked the judge to reject subpoenas for documents and a deposition issued by Harvey Weinstein’s lawyer.

Harvey Weinstein, who also co-founded the film company Miramax, was once one of the most powerful people in Hollywood, having produced films such as “Pulp Fiction” and “The Crying Game.”

In 2017, he became the most prominent villain of the #MeToo movement, which erupted when women began going public with accounts of his behavior.

He has long maintained that any sexual activity was consensual.

Harvey Weinstein is being retried on charges that he forcibly performed oral sex on a movie and TV production assistant in 2006 and raped an aspiring actor in 2013. Another charge filed in September alleges he forced oral sex on a different woman at a Manhattan hotel in 2006.

His 2020 conviction and 23-year prison sentence were overturned last year, as an appeals court found the trial judge unfairly allowed testimony against Weinstein based on allegations that weren’t part of the case.

Dave Collins, The Associated Press