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Arbitration · Fahad Ghaffar · Fraud · John Paulson
Billionaire investor John Paulson secured a major victory against former business partner Fahad Ghaffar, with an arbitrator ordering Ghaffar to repay approximately $48 million and affirming his termination for intentional misconduct and fraud.
The decision, revealed Monday, marks a significant development in Paulson's long-running feud with Ghaffar, who previously helped manage Paulson's extensive Puerto Rico real estate and hotel portfolio. Arbitrator Carolyn Demarest found Ghaffar engaged in "intentional misconduct and fraud," justifying his July 2023 termination, according to a federal court filing in Puerto Rico.
Ghaffar must repay $35.66 million in profits from a Dynamic Payments investment and $112,936 in American Express rewards points, along with committing fraud related to Paulson's $11.48 million investment in software company Innoveo. Paulson's lawyers, Terrence and Darren Oved, stated to The Post that Paulson proved Ghaffar committed fraud, securities fraud, and breached fiduciary and contractual obligations.
Ghaffar's attorney, Martin Russo, criticized Paulson for publicizing the findings, claiming confidentiality violations and asserting Paulson "failed on every claim" related to Ghaffar's management, promising to demonstrate Paulson suffered no damages. The arbitration ruling stems from a dispute over compensation and profit-sharing, separate from Ghaffar's 2023 lawsuit against Paulson regarding a luxury car dealership venture or Paulson's subsequent racketeering lawsuit.
An additional phase of arbitration will address unresolved damages issues, as stated in a June 8 follow-up order by Demarest.
