‘Psychotic’ ex-financier blew millions on strangers
Friday, May 31, 2013
A “psychotic” former financier blew millions of dollars on presents for strangers, including luxury cars and cash gifts, while Bank of America failed to raise concerns, a lawsuit in New York claims.
By Jenny Johnson
Bank of America is being sued by the brother of the multi-millionaire who, following a helicopter accident which left him psychotic, went on a spending spree, blowing millions on strangers.
Jeffrey Horan, aged 43, a former Lehman Brothers and UBS financier, bought lavish gifts for people he hardly knew — including a $460,000 (€352,620) Lamborghini for a New Jersey contractor, and a $72,000 Mercedes for a woman from Queens, according to a lawsuit filed in Manhattan.
Horan’s lawyer brother, Larry, said Jeffrey suffers “mania and psychotic delusions”. Larry, who was appointed Jeffrey’s legal guardian, says his brother’s bank adviser did nothing to stop him during his spending spree and should have raised the alarm.
In addition to the Italian luxury car, Horan gave Alex Gershkovich a sum of $600,000 to work on his Upper East Side apartment despite barely knowing him, the lawsuit alleges.
And only a few days after meeting Erika Ortiz, Horan bought her the Mercedes and transferred $300,000 to her.
He also issued blank cheques to others during the 2010 spending spree which was part of a “strange, illogical, and self-destructive behaviour and improper and erratic financial transactions that resulted in the loss of millions of dollars,” the lawsuit says.
Horan’s financial adviser at Bank of America knew her client was mentally unstable but failed to raise the alarm, “ignoring suspicious and inexplicable activity”.
The lawsuit is seeking millions in compensation and punitive damages from the bank, Ortiz, and Gershkovich.
“When your helicopter crashes doing 165 miles an hour into trees, it tends to change people’s lives,” said Horan’s former business partner Drew Doscher.
“I lost a good friend and a great business partner.”
The lawsuit says “he was a danger to himself with respect to his financial affairs” and had been hospitalised twice for mental health issues. He was committed against his will in both cases.
While allowing Jeffrey Horan to empty his accounts, the bank continued to collect “large sums of money for fees”, Larry Horan said.
Ortiz and Gershkovich lied to Horan ‘in order to take advantage of his mania and psychotic delusions,’ the lawsuit charged.
It also seeks unspecified money and damages from Bank of America and financial firm Merrill Lynch over their mishandling of Jeffrey Horan accounts.
Jurors in the trial of two former personal assistants accused of defrauding Nigella Lawson and Charles Saatchi have been warned to ignore comments made by British Prime Minister David Cameron about the celebrity cook.
The judge in the trial of two former personal assistants accused of defrauding Nigella Lawson and Charles Saatchi has issued a rebuke to UK Prime Minister David Cameron over comments he made about the celebrity chef, urging the jury to reach its verdicts on the evidence alone.
There has been a slight decrease in the number of residential mortgages in arrears over 90 days and an increase in the number of permanently restructured mortgages in October, according to the Department of Finance.
The Limerick intermediate team is still without a manager, but, in a compromise that was backed unanimously at a meeting of the county board in Claughaun GAA club last night, the dispute that had threatened to throw the county back into the chaos it had witnessed only three years ago was finally resolved.
MYTHS are the stories that groups tell themselves: the beautiful lies that allow life go on. This is a week of great myth making. In the death and interment of Nelson Mandela we are witnessing modern myth being made in front of our eyes. But myths can be pernicious and evil — corroding life as well as enhancing it.
Tipperary native Brian Lonergan fulfilled a long-standing ambition when his tricolour appeared on live TV during Sunday's NFL clash between the San Francisco 49ers and the Seattle Seahawks at Candlestick Park.
THE scandal at the Central Remedial Clinic is a gift to the Government. Here we have an organisation seemingly plundering charitable funds, to feather the nests of a group of Fianna Fáil insiders, all of whom can be linked easily to former Taoiseach Bertie Ahern.