Fahad Ghaffar Was ‘Cool’ With Billionaire John Paulson. Now, It’s A Legal Battle

In business, anything is bound to occur (Positive or negative). And so if your business with others come out fruitful, they need a ‘thank you’ from you. You would absolutely be remissed if you do not give credit where credit is due.

This is an introduction to what happened between Billionaire John Paulson and his business partner Fahad Ghaffar. Paulson is being sued by Ghaffar for $50 million for supposed misrepresentation and breach of contract.

In the complaint, filed in federal court on Wednesday September 6, offended party Fahad Ghaffar claims he invested $17 million into Paulson’s F40 vehicle organization in 2022 that would be changed over into a 50 percent value stake.

Ghaffar was also set to earn 10 extra percent for his work for the organization.

Paulson and his lawyers, notwithstanding, “continued to misrepresent to Ghaffar that he had purchased a 50% interest in F40,” the reports claim.

The entrepreneur claims he repeatedly requested documentation of the convertible note that reflected his ownership stake, but as recently as March 23, Paulson’s attorneys “indicated that they are still working on the note with Paulson’s general counsel and head of tax, because the features are ‘quite intricate,’” the filing affirms.

Ghaffar is demanding $50 million in damages after Paulson purportedly took his $17 million investment and never gave him value in his car company, F40.

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The humanitarian is suing Paulson for securities fraud, unjust enrichment in violation of Puerto Rican law, breach of contract, fraud, damages, violation of the uniform securities act of Puerto Rico and constructive trust.

On this date- August 18, 2023, Ghaffar claims Paulson, who became renowned for bringing in his cash by shorting the real estate market in 2007, emailed him to take him out of all positions in F40″ in spite of Paulson just having affirmed Ghaffar’s role as F40’s leader and President in an email with Hyundai de San Juan.

Paulson’s email to Ghaffar, a humanitarian or philanthropist in Puerto Rico, provoked him to request a letter affirming his convertible note, a short-term debt agrreement that proselytes into value sometime not too far off.

“Paulson responded with further empty promises of an instrument for ‘consideration’ as if the terms of the profits interest and conversion feature had not been set at the time of purchase,” the documents state.

“This subterfuge was in furtherance of the securities fraud,” the complaint alleges.

The hedge fund manager is famous for earning his money by shorting the housing market in 2007.

.“I love Puerto Rico, and I’m very disappointed” in Paulson’s conduct, Ghaffar revealed in a statement.

“We have the utmost faith in the federal courts of Puerto Rico, and I find it very upsetting that someone who had been involved in the securities industry would be permitted to behave this way,” adds Ghaffar’s attorney, Martin Russo.

A representative for Paulson PRv considered Ghaffar’s claim a “unmerited effort to redirect attention” from Ghaffar’s supposed wrongdoing and said they plan to record a counter-complaint against Ghaffar.