Kimora Lee Simmons Denies Committing Fraud Against Ex-Husband Russell Simmons

Kimora Lee Simmons has fired back at ex Russell Simmons. Having been sued for allegedly stealing his stocks, the fashion designer claimed that she and her current husband Tim Leissner were “authorized” to use the shares.

via: Radar Online

According to court documents obtained by Radar, the Baby Phat founder is asking the court to trim his suit against her and her husband Tim Leissner. She says her ex has no proof to back up his claims of fraud and therefore they should be dismissed.

As Radar previously reported, earlier this year, Russell sued his ex-wife and her investment banker spouse accusing them of stealing stocks he had ownership in without his permission.

He claims to have owned a bunch of shares in the energy drink company Celsius. Russell says Kimora and Tim somehow unlawfully transferred funds owned by him into their account. Russell and Kimora were married from 1998 till 2009.

They had stayed friendly over the years even as women came forward to accuse Russell of abuse. A couple of years back, the former couple and Kimora’s new husband even partnered together in an investment company called Nu Horizons.

In court, Russell says Kimora fraudulently moved four million shares of Celsius to another company to pay Tim’s legal fees. At the time, Tim was hit with money laundering charges.

He eventually pleaded guilty to criminal conspiracy to commit money laundering for his role in the Malaysian wealth fund 1MDB. Kimora’s husband agreed to pay back $44 million in exchange for no jail time.

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 said he waited years before filing his suit because he wanted to work out the issues privately. The disgraced mogul says his shares have now been frozen by the government after being used as Tim’s bail money.

In newly filed documents, Kimora’s lawyer says, “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.”

Kimora says Russell had resigned from the board of Nu Horizons months before she made the transfer. She said he also sold off his interest in the company and other assets to another company called Keyway Pride LTD for $14.25 million.

She also argues the shares have not been sold off. Kimora says they are simply temporarily being held by the government temporarily as collateral for the bond and will be returned. Kimora says all claims of fraud should be immediately dismissed.

Kimora’s rep previously spoke out about the suit trashing the fashion designer’s ex.

She said, “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, gas lighting, and ongoing harassment he has inflicted on Kimora.”

Time will tell who’s telling the truth.

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