Russell Simmons, the renowned music mogul, is embroiled in a legal battle against the government’s attempt to seize a substantial portion of his investment in the energy drink company Celsius. Simmons had previously filed a lawsuit against his ex-wife, Kimora Lee Simmons, and her estranged husband, Tim Leissner, accusing them of using his shares from Celsius to cover Leissner’s legal fees. Specifically, Simmons claimed that Kimora and Leissner utilized a portion of the shares rightfully belonging to him to bail Leissner out of jail.
In response to the government’s move to confiscate collateral funds tied to his investment, Simmons has filed a petition to prevent the seizure. The music mogul contends that the shares are rightfully his and vehemently opposes the government’s attempt to take what he values at over $500 million. Prosecutors reportedly sought the dismissal of Simmons’ petition, a move that the music mogul has contested.
Simmons, through his attorney, expressed his dismay at the government’s actions, stating,
“The motion to dismiss the Verified Petition is a shocking attempt by the government to take property worth over $500 million from an innocent person while denying that person the ability to challenge the government’s wrongful taking”.
Simmons’ legal team argues against the government’s assertion that stepping into the shoes of a criminal member of an LLC allows them to seize all the interests of the other innocent members without providing them the opportunity to contest the decision. Simmons’ attorney emphasized that Simmons had paid money and contributed valuable promotional efforts for his membership interest in Nu Horizons, the company involved in the Celsius investment. The attorney argued that Leissner’s criminal activities were beyond the scope of his duties at Nu Horizons, and Simmons should not be held accountable for them.
The legal saga began when Kimora Lee Simmons and Tim Leissner, who got married in 2014, invested in Celsius in 2017, allegedly under the guidance of Russell Simmons. However, in 2018, Leissner faced arrest for his involvement in a significant foreign money laundering scheme unrelated to the energy drink business. Reportedly, funds from Celsius were moved to Kimora’s investment company, Nu Horizons, leading to Russell Simmons’ accusations.
Simmons vehemently denies Kimora’s accusations, insisting that he invested his own money in stocks purchased by Leissner. The investment reportedly surged to over $500 million, and the government’s attempt to take $456 million from Simmons, allotting only $43.7 million to Leissner, has further complicated this legal tussle.
Written by
Derek Chan – Editor
