Money | 02/09/2009 11:55 am

Disgraced Business Execs' Wives Get Pricey Homes

By The Staff at wowOwow.com

Some of the beleaguered executives accused of triggering the economic meltdown seem to be shedding some of their luxurious properties.

The New York Post waded through property reports and says disgraced Lehman Brothers CEO Dick Fuld, Chrysler CEO Robert Nardelli and former Merrill Lynch CEO Stanley O’Neal have all passed expensive homes off to their spouses. Nardelli’s wife, Susan, now officially owns a $3.8 million, four-bedroom, five-bath Los Angeles home, even though Nardelli’s people say no such transfer took place. O’Neal — ousted from Merrill Lynch in 2007 with a $161 million golden parachute — deeded a $4.5 million Westchester mansion to his wife, Nancy Garvey, along with their $20 million Park Avenue duplex. Fuld last month took a lot of heat for transferring his $13 million Florida waterfront mansion to his wife, Kathleen, for $100. Many observers speculated Fuld was simply trying to secure his assets from potential creditors or did it because he anticipates legal action against him. That may help explain the other, more recent transfers.

Fuld has been named in at least one lawsuit filed by San Mateo County in California seeking damages for the collapse of Lehman Brothers. An investor lawsuit has been filed against Merrill Lynch for its exposure to risky mortgage investments. And Nardelli — formerly the CEO of Home Depot — has been sued by Home Depot employees who claim he and other company directors mismanaged the employees’ defined-contribution plan by purchasing Home Depot stock even though the executives backdated stock options.

With their wives in charge of the homes, however, these men can rest easy knowing their mansions will be there should the legal ax come down.

Click here for an aerial tour of the homes of Bernie Madoff and other bailed-out bankers.

33 Reader Comments (so far…) Sign In or Register to comment

With their wives in charge of the homes, however, these men can rest easy knowing their mansions will be there should the legal ax come down. I wouldn’t have expected anything less. Let the blade drop !!!

By Marjorie C. on 02/09/2009 12:02 pm

e-mail alert

Hi Marjorie: I was trying weeks ago to explain to some people on here that if Bernie Madof had all his holdings in his wifes name the gov couldn’t touch his properties. Well, it seems I was right after all.

By Irish Eyes NY on 02/09/2009 12:10 pm

e-mail alert

Irish Eyes: Well, it seems I was right after all. Guess so.

By Marjorie C. on 02/09/2009 4:14 pm

e-mail alert

Marjorie—we don’t use the guillotine ya know :-)

By f p on 02/09/2009 12:15 pm

e-mail alert

f p: …we don’t use the guillotine ya know… Since when?

By Marjorie C. on 02/09/2009 4:15 pm

e-mail alert

Marjorie even the French stop using it—and that’s saying something.

By f p on 02/10/2009 9:03 am

e-mail alert

Marjorie, Guess some don’t think guillotine’s come in smaller sizes……Lest they be reminded of Lorena Bobbit!

By HA BIBI on 02/10/2009 9:45 am

e-mail alert

Those homes should be sold and give those women enough of the proceeds of the sale to buy a MODEST home and the rest should go back into the pockets of the people they ripped off.

By caj p on 02/09/2009 12:07 pm

e-mail alert

Along with the 18.4 billion in bonuses

By f p on 02/09/2009 12:14 pm

e-mail alert

If the wife goes along with this, then she is just as guilty as her husband. I feel they are married so anything that is theirs should be taken away…I would like to see they be made to sell those homes, but then again, who would buy them in this economy…but it would be nice if the money for those homes would go back to the employees they swindled.

By C Hardy on 02/09/2009 12:28 pm

e-mail alert

Good point, C. I know this is job-related for these guys, but isn’t liability shared in a marriage? Probably not, if they are all doing this.

By Green Tears on 02/09/2009 12:34 pm

e-mail alert

Green Tears: Probably not, if they are all doing this. There is a community property law in some western states, but most states do not have it. Can be confusing. My guess would be the property is being handed over to the wife or some such corporation-type entity owned by the wife which makes the property untouchable. These swindlers are clever.

By Marjorie C. on 02/09/2009 4:27 pm

e-mail alert

It happens all the time; I see it happen a lot. It isn’t “technically illegal” so unless it can be proven beyond a reasonable doubt that these men are attempting to circumvent the system by hiding or transferring assets, they are in the clear. What gets me about this practice among the uber rich is they don’t see that they are no different than the low life scum that they discuss as being beneath them. The men and women that are covered everyday in the press for robbing a gas station or shop lifting. Theft and dishonesty is theft and dishonesty. The only difference seems to be those that do it may live in different zip codes!

By Belinda Joy on 02/09/2009 12:43 pm

e-mail alert

Hi Belinda, At Christmas time I was at my local grocery store and a man was arrested for stealing a baked chicken, my teenage children were with me as the police were taking him out we were walking behind them and I was explaining to my children that it is unfortunate this guy may do more time then the people on Wall Street who have robbed people of millions, I found the whole incident very sad. I don’t think the Police officer was very impressed with my version of how our justice system fails us but I was just calling them as I see them. I want my children to understand the same thing you just stated about low life scum, those execs are no different if not lower, its one thing to steal to eat it is another thing entirely to rip people off and have no soul, ethics or integrity, these executives are too busy worshiping at the trough of the golden calf and I would love to have them judged by a jury of homeowners and small business owners who have been on the losing end of their greed. Who really knows what their wives may be like but I am not holding my breath. My grandparents taught me very young that just because someone has money does not mean they have any class and there is a definite difference between the two. I have tried to pass that on to my children but the media today sure makes that difficult with all the worshiping of money and the celebrity lifestyle. I personally am tired of the let them eat cake attitude of these type of people and yes there are times that the off with their heads or to tar and feather sounds appropriate if not totally far fetched and sometimes wistful.

By g c on 02/10/2009 9:08 am

e-mail alert

Kudos to you for attempting to teach your children what is right and wrong in terms of crime. In the poorest of neighborhoods you’ll find hardworking people who are doing their best to merely get by, living alongside people who want to lie, cheat and steal to survive. They affect how those in their community are viewed and labeled. The same can be said for the Wall Street types who for the most part are honest, hardworking people. But they are mixed in with men and women that lie, cheat and steal and they too affect how we label and view Wall Street because of it. I love your grandparents and the lesson they taught you, my father taught me the same lesson and it has served me well in life. I only wish more people were instilled with the lesson you and I were taught and carry with us through our day to day lives.

By Belinda Joy on 02/10/2009 10:52 am