Fahad Ghaffar, a longtime business partner of John Paulson in Puerto Rico, has sued the hedge fund veteran alleging Paulson made fraudulent claims to convince him to invest $17m in a luxury car dealership on the island, according to a report by Bloomberg.
In a lawsuit filed in a federal court in Puerto Rico this week, Ghaffar is seeking over $50m in damages from Paulson claiming that he was told his $17m investment would secure a convertible note that would eventually give him a 50% ownership stake in F40, a car dealership recently acquired by a Paulson family trust.
Ghaffar claims he subsequently worked as Chief Executive Officer of the business, without pay, based on the terms of the promised note – which he never received – until Paulson emailed him in August, axing him from the company.
The case is Ghaffar v Paulson, 23-cv-1455, US District Court, District of Puerto Rico.
