John Paulson, the renowned hedge fund manager with an estimated net worth of $3.5 billion, has filed a lawsuit against his former business partner, Fahad Ghaffar, in Puerto Rico. Paulson alleges that Ghaffar, along with several family members, deceived him and embezzled millions of dollars to support their extravagant lifestyles, including luxury shopping sprees and extravagant parties in Las Vegas.
The lawsuit, which was filed in San Juan on Monday, accuses Ghaffar of draining $3.4 million from Paulson’s operations for personal use. Paulson’s lawyers emphasized that Ghaffar portrayed himself as a loyal team member and philanthropist, but ultimately betrayed Paulson’s trust for his own gain. Their actions, according to the lawsuit, compromised the business decisions that Ghaffar was entrusted to make on behalf of Paulson.
In his legal complaint, Paulson claims that Ghaffar collaborated with his wife, father-in-law, brother, two sisters, and a personal assistant to commit racketeering and fraud. Consequently, Paulson is seeking damages amounting to nearly $190 million.
The lawsuit sheds light on Ghaffar’s alleged extravagant spending. It states that in 2021, Ghaffar charged $102,000 at Louis Vuitton stores in Saint Barthélemy, claiming it as a business expense. He also splurged $45,000 at a Chanel boutique in New York City and spent an additional $20,000 at the Omnia nightclub in a single night of revelry in Las Vegas.
Currently, a bitter legal battle rages between Paulson and Ghaffar. Earlier this month, Ghaffar initiated his own lawsuit against Paulson, claiming that he was deprived of a 50% stake in a luxury car dealership. Moreover, both Ghaffar and Paulson’s wife have accused Paulson of using his Puerto Rico businesses to conceal billions of dollars’ worth of assets during their divorce proceedings.
The lawsuit paints Ghaffar as an unemployed, small-time commercial real estate investor who pursued the opportunity to work for Paulson & Co in 2013. Beginning as a junior analyst, Ghaffar eventually climbed the ranks to become a senior manager in Puerto Rico.
Efforts to seek comments from Ghaffar and his attorney were unfruitful at the time of reporting.
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