Accusations, Defamation, and Corporate Jets
The legal battle quickly spiraled into allegations of personal misuse of company funds, with Jefferies claiming Weiss siphoned money for private expenses and payments to associates. In response, Weiss launched a defamation suit in New York State court in January, asserting the claims were malicious and false.
He pointed to a November report by a court-appointed examiner, which found $28 million of $31 million in disputed executive bonuses were legitimate, and that Weiss had reimbursed the firm for jet usage and legal costs—charges Jefferies used to discredit him.
The Final Blow?
Weiss’s filing now paints the picture of a fallen titan attempting to regain control amid legal and financial chaos. The Chapter 11 process, his team says, is aimed at managing his creditors in an “orderly and respectful fashion.”
He is being represented by Paul J. Battista of Venable LLP, a notable figure in bankruptcy law circles.
