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Daily Mail
3 days ago
- Business
- Daily Mail
Tycoon's astonishing divorce court confession sends shockwaves through Wall Street
The boss of an $800 million private equity firm suddenly announced he has Alzheimer's disease in the middle of a divorce hearing. Health Point Capital managing partner John Foster, 83, has been locked in a bitter divorce with his estranged wife Stephanie Foster, 57, for four years. Foster claimed her extravagant spending habits wiped out his $45 million fortune and he is almost 'destitute', but Stephanie insists he is hiding assets. His lawyers previously claimed Stephanie blew money on designer clothes and other luxuries 'at a rate that… none of us can conceive'. Stephanie Foster's camp instead rubbished claims Foster was suddenly $12 million in debt when his wife filed for divorce, which may also come as a shock to his shareholders. She said he was still flying on his private jet between New York and Florida for Botox, hair dye, and manicure appointments. Foster also sold a sprawling eight-bedroom, nine-bathroom mansion on the ultra-exclusive Fishers Island, Massachusetts, for $10 million last October. But his claims of being unable to remember documents he signed, or where his wealth was allegedly stashed, became more believable on Wednesday. During his second day on the stand in the Manhattan Supreme Court he dropped the health bombshell which is likely to enrage his shareholders. 'I'm 83-years-old, I have recently had an MRI, which is a brain scan for my Alzheimer's,' he said, totally unprompted, according to the New York Post. Stephanie's lawyer Rita Glavin, who was stunned by the news, asked him to confirm his diagnosis, and he replied 'yes and I am being examined' for it with the MRI. However, he later said in his testimony that he couldn't remember why he got the MRI, or what he said earlier in his evidence. He also spent part of the hearing scrolling through his phone and had to be admonished by Glavin. Concealing his condition could open Health Point Capital to shareholder or investor lawsuits and potential action by the SEC, experts told the NYP. Exactly when Foster was diagnosed and how much his business partners knew about his illness was not disclosed. Foster said he was placed on leave several weeks ago due to 'other litigation not to do with this proceeding', which he also had not told the court before. He is still listed as the first managing partner on the firm's website . Glavin then asked if the 'other litigation' was claims he used company accounts to hide personal income, and Foster responded by ending the hearing. 'Judge, I think we should close for the day, I'm not up for it,' he said, the NYP reported. The court previously heard the 15-year marriage broke down after Foster frequently cheated on his wife. But Stephanie previously said the last straw was him telling her, 'I don't care what happens to you when I die.' Glavin previously told the court how Foster added $3 million to his bank account in one year and splurged $800,000 on a Hinckley yacht. Foster also owns a ranch in Texas filled with exotic African animals including oryx, sable and zebra, a Gulfstream IV-SP jet, and a mansion in The Breakers on Palm Beach, Florida. Stephanie produced a text message exchange between Foster and the family lawyer that she claimed was proof he was hiding his wealth. 'Your net-worth strategy worked. Steph is stunned. Told me I'm bankrupt! She's very upset!' he wrote.
New York Post
4 days ago
- Business
- New York Post
Private equity bigwig shocks courtroom with Alzheimer's diagnosis during bombshell NYC divorce trial: ‘I'm a lowly business man'
A private equity CEO wrapped in a bruising divorce battle shocked a Manhattan courtroom this week when he suddenly announced he has Alzheimer's disease — potentially opening him up to regulator sanctions and shareholder lawsuits, experts said. John Foster, 83, managing partner of the $800 million private equity firm HealthPointCapital, made the stunning, unprompted admission in Manhattan Supreme Court Wednesday as he testified in his divorce case against his estranged wife of 15 years Stephanie Foster, 57. 'I'm a lowly business man,' said Foster, a longtime health devices bigwig who spent much of his testimony claiming he couldn't recall whether he had signed notarized documents or sworn affidavits. 5 John H. Foster, center, stunned a courtroom Wednesday when he announced a previously undisclosed Alzheimer's diagnosis. Steven Hirsch 'I'm 83-years-old — I have recently had an MRI, which is a brain scan for my Alzheimer's,' he suddenly added, divulging a previously-undisclosed illness. Experts said the revelation from Foster — who spent much of his testimony claiming he couldn't remember signing official documents — could potentially have serious legal consequences outside of his messy divorce. 'That may be material information that has to be disclosed under federal law and SEC regulations,' said securities fraud trial lawyer, Michael P. Bowen. Foster — who is currently under a no-contact order due to 'taunting' text messages he sent to his soon-to-be ex-wife last fall — also erupted in court Wednesday as he bemoaned the hourly rates charged by her attorneys. '$40,000 a day for this bulls—t,' he said loudly, as the lawyers spoke with the judge at the bench. His own apparently well-compensated lawyer, Linda Rosenthal — who has previously claimed her client has 'barely a positive net worth, if at all' — told him to zip it. 5 John Foster spent much of the day saying he could not recall basic things, like if he had signed notarized documents or his sworn affidavit. Steven Hirsch During what was his second day on the stand this week, Foster repeatedly answered 'I don't recall' in response to basic questions about if he remembered signing notarized documents, a statement of net worth, records of million-dollar deposits and his sworn affidavit. After answering yes when pressed by his wife's high-powered attorney Rita Glavin to confirm he had Alzheimer's, he later tried to qualify by saying: 'yes and I am being examined' for the disease when he got his MRI a week earlier. But when Glavin asked him to clarify an earlier statement about his diagnosis, Foster said he could not recall why he got an MRI, or what he had previously said in his testimony. 5 Wife Stephanie Foster has long claimed that her husband is hiding potentially hundreds of millions in a 'net worth strategy' to avoid a divorce payout. Steven Hirsch Bowen, who is not involved in the Foster case, said that while there's no clear line of when a duty to disclose is triggered, a diagnosis like Alzheimer's is one that could directly impact Foster's fund. 'An investor would want to know that information,' Bowen said, adding that the specifics are what matters in cases like this. 'It could lead to sanctions by the SEC, or to shareholder lawsuits,' he said, if Foster's condition was not properly disclosed. 5 Texts found by Stephanie Foster on John Foster's phone allegedly congratulating his lawyer for successfully hiding his wealth from her. Courtesy Stephanie Foster Foster told the court Wednesday that his company placed him on leave 'several weeks ago' due to 'other litigation not to do with this proceeding' — something he hadn't disclosed during his testimony the prior day. Healthpoint Capital still lists Foster as its first managing partner on their website. The company did not immediately respond to questions regarding Foster's current status of employment or when he last signed investor statements and other documentation on behalf of the firm. Glavin — who also reps ex-Gov. Andrew Cuomo in the sexual harassment lawsuits he faces — peppered Foster about his wife's claim that he attempted to hide more than $6.3 million in income from her. Foster has previously claimed during the nearly four-year-long acrimonious separation that his wife's spending has left him destitute, but she claims to have discovered a text message that reveals a deliberate 'net-worth strategy' to hide his true assets. 5 Stephanie Foster, center, leaving the courthouse Wednesday with one of her lawyers, BriAnne Copp. Steven Hirsch When Glavin asked if he had been placed on leave because of the allegations he used company accounts to hide personal income from a business deal, Foster immediately clammed up. 'Judge, I think we should close for the day,' Foster said as he placed a pair of hearing-aided headphones on his head that he only wore occasionally during the day. 'I'm not up for it.' He then complained that his wife had too many lawyers, and he, too few. 'She has too many lawyers. It's three verses four,' he riffed. At other points, Foster had his head buried in his hands, or was too busy scrolling on his smartphone to respond to questions from Glavin as he sat in the witness stand. 'Mr. Foster, can you please put your phone down for a moment?' Glavin requested repeatedly. 'Do you think your testimony is important?' 'I'm not at liberty to discuss,' he said from the witness stand. 'Yes you are,' Glavin replied. 'You are under a subpoena.'
