Israeli Businessman Ordered to Give $100M to Winston Client

A New York appeals court ordered Israeli businessman Michael Cherney to turn over the $100 million interest he invested in ERIP LLC, a hedge fund, to pay down part of $505 million that a trial court found he owed Winston client Alexander Gliklad.  

The court said that it did not believe Mr. Cherney’s claim that he gave his two daughters the $100 million and suggested that they invest it in ERIP.

“We agree with the motion court that Cherney raised a ‘feigned issue of fact,’” the appeals court said.

Mr. Cherney owes $270 million – and an additional annual 9% interest – to Mr. Gliklad, represented by litigation partner Gordon Dobie, after a New York state judge ruled in the spring that a ten-year-old promissory note between the two for a 26% stake in coal company KuzbassRazrezUgol was valid. Mr. Gliklad is the former head of the company.

The case was covered by Law360 in the article titled “Israeli Businessman Ordered To Give $100M To Ex-Coal Exec.”