Skip to content

Cantor's Lutnick Cleared of Wrongdoing in $875 Million Mortgage-Unit Deal

  • Pension funds accused Cantor CEO of lining his own pockets
  • Judge calls deal ‘entirely fair,’ although process ‘imperfect’
Howard Lutnick
Howard LutnickPhotographer: Michael Nagle/Bloomberg
Updated on

Cantor Fitzgerald LP Chief Executive Officer Howard Lutnick didn’t do anything wrong in pushing through the $875 million sale of a Cantor-owned mortgage lender to another company he controlled, a judge ruled.

Delaware Chancery Court Judge Lori Will found that a Cantor unit’s sale of Berkeley Point Financial LLC to BGC Partners Inc. was “entirely fair” even though Lutnick was the majority shareholder in both companies. While his “presence loomed large at times” in BGC directors’ consideration of the deal, “I conclude that the process -- albeit imperfect -- was ultimately fair,” Will wrote in an Aug. 19 ruling.