Billionaire Buddy To The Environment
Posted by Michelle Moquin on 5th July 2012
Uh…not exactly.
Good morning!
Reclusive billionaire who owns the most expensive home in America ‘lets his firmsgo bankrupt so he can skip paying out for environmental damage’
A reclusive billionaire who owns the most expensive home in the US has been accused of making his firms go bankrupt to avoid their environmental responsibilities.
Ira Rennert is said to have taken RG Steel into administration rather than pay the $650million he was liable for to treat a contaminated facility in Maryland.
Environmental campaigners claim his actions are part of a pattern where he put his firms and their workers at risk rather than pay the bills.
They have accused him of being fraudulent with bankruptcy courts – and said he is guilty of ‘ducking out of any kind of responsibility’ yet again.
Rennert is best known for the 29-bedroom estate he built in Sagaponack in The Hamptons in New York which is said to be worth $198million, the most expensive home in America.
But he is also a target for environmental groups because of what they see as his total disregard for the planet.
The latest row is over Maryland-based RG Steel which Rennert bought last year with his own company, Renco.
Now, despite being worth $5.5billion RG Steel has filed for chapter 11 bankruptcy.
Critics claim Rennert, who is worth $5.4billion, would rather do this than clean up a facility in Sparrows Point in the east of the state which has been contaminated with carcinogens benzene and naphthalene.
Russell Donnelly, an environmentalist in Sparrows Point, told the New York Post: ‘His company is ducking out of any kind of responsibility again.
‘It became too hot to handle, and his company is moving on. This is the track record. His company has done this all over the planet.’
Bart Fisher, an attorney for environmental group Sparrows Point Action added: ‘What is amazing is that Renco committed fraud on the bankruptcy court by stating in its bankruptcy petition that there were no environmental problems.
Sprawling: A Bird’s Eye view of the compound owned by billionaire Ira Rennert at 281 Daniels Lane, Sagaponack, New York.
Impressive: The front gate of the 29-bedroom, 100,000-square-foot estate
Glitzy: Ira Rennert and his wife Ingeborg Rennert attend the 2010 American Friends of the Open University of Israel Gala at The Plaza Hotel on December 13, 2010 in New York City‘Part of the reasoning for the bankruptcy was, no doubt, to avoid certain environmental claims.’
Rennert has previously taken Utah-based magnesium mine MagCorp into bankruptcy when it was given a $900million fine from the Environmental Protection Agency for allegedly dumping toxic chemicals in the Great Salt Lake.
There were also allegations over a Rennert-owned smelting company in La Oroya, Peru, which was designed one of the top 10 most polluted places on Earth by environmental watchdog the Blacksmith Institute.
A study by researchers at St Louis University found that 97 per cent of children under six in the city, which is home to 35,000 people, were being exposed to toxic chemicals.
In 2004 Rennert enraged the well-heeled residents in The Hamptons where the likes of Billy Joel, Alec Baldwin and Paul McCartney have homes with his grand plan for Fair Field, his Italian style villa and grounds.
Occupying 63 acres, local officials were horrified with his plans to build the property in 2004 which has 39 bathrooms, is twice as big as the White House and comes with its own theatre and temple.
Enormous: The home is America’s largest private residence along a once-pristine stretch of beach
Financial troubles: The struggling RG Steel Sparrows Point mill on the Patapsco River near Baltimore bankruptcy protection in Delaware on Thursday
Lawsuit: The U.S. Magnesium Corporation, owned by trusts set up by Ira Rennert, is being sued by the Environmental Protection Agency, on claims of mishandling toxic waste near the Great Salt Lake in UtahThere is also a basketball court, a 200 car garage, a hot tub which cost $150,000, a bowling alley and a grand dining table which is 28ft long.
THE HOUSE THAT ATE THE HAMPTONS
Ira Rennert’s estate stretches over 63 acres of land.
The house features 39 bathrooms and is twice the size of the White House.
There is a theatre, a temple, and a bowling alley.
Rennert’s dining table is 28ft long and his garage can house 200 cars.
His hot tub cost $150,000.
The property taxes alone are $370,000 a year.
Locals wanted to block Rennert from getting a building permit and nicknamed the property ‘The House that Ate the Hamptons’ – but in the end he got his own way.
Rennert, the son of Polish immigrants, earned his first $500million selling junk bonds in the 1990s and used the money to buy military contractor AM General which started making consumer Hummers, though he later sold his stake in the firm.
In 1999 film maker Michael Moore gave him the annual ‘Awful Truth’ award on account of his poor attitude towards the environment.
Rennert, 78, is married to his former airline ticket agent wife Inga and they have three children together.
Forbes magazine ranks him as the 189th richest person in the world and he is a regular at Gala events in New York and The Hamptons.
David Pryzbylski, the chief administrative officer for RG Steel, claimed that the company has honoured all its environmental obligations and that it went into bankruptcy due to market conditions and nothing more.
He said: ‘Even though we are in Chapter 11, we continue all environmental compliance.
‘I don’t think Sparrow Point poses any immediate threat to public health or safety. We are in full compliance with all environmental commitments.’
Imposing: Locals dubbed the house ‘The House that Ate the Hamptons’
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