Strauss-Kahn Told to Pay Back $82,600 in Taxes for Failed Hedge Fundby and
Former IMF chief loses Luxembourg court appeal over liability
Court says DSK owes $82,600 in back taxes, interest for 2014
Former International Monetary Fund chief Dominique Strauss-Kahn was ordered to pay 74,792 euros ($82,400) in back taxes and interest in a Luxembourg court ruling over his role at a bankrupt hedge fund he co-founded.
Strauss-Kahn couldn’t escape personal responsibility for Leyne Strauss-Kahn & Partners’ tax obligations dating back to 2014, a Luxembourg court ruled Nov. 2, according to a statement from the tribunal published Tuesday. The 67-year-old Strauss-Kahn had appealed a decision by the nation’s tax agency.
Strauss-Kahn’s role as director meant he “was responsible” and that he had to “watch over the execution of fiscal obligations” of the firm he represented, the court said in the statement.
Tuesday’s decision is the latest blow for the man who, until his sudden resignation as head of the IMF in May 2011 over accusations of sexual assault by a New York hotel maid, had been one of the most powerful public figures in the financial world. Strauss-Kahn was subsequently also put on trial with more than 10 other defendants in Lille, France, on charges of pimping for their alleged role in organizing sex parties. Though he was acquitted, it dragged his reputation lower.
Jean Veil, Strauss-Kahn’s lawyer, declined to comment.
Strauss-Kahn, who was once considered a leading candidate to replace former French President Nicolas Sarkozy, tried to rebuild his career in private finance with business partner Thierry Leyne. In 2013, they teamed up to found the LSK hedge fund and pledged to raise up to $2 billion in capital.
Leyne died in 2014 after falling from the high-rise Yoo Towers in Tel Aviv, where he resided. In the wake of Leyne’s death, Strauss-Kahn said he discovered hidden liabilities he knew nothing about. That prompted lawsuits from investors.