The Tribune

By RASHAD ROLLE

Tribune Senior Reporter

rrolle@tribunemedia.net

US federal agents raided offices of Peter Nygard’s fashion company yesterday amid a sex-trafficking investigation into the wealthy fashion mogul. 

Ken Frydman, a spokesperson for Mr Nygard, confirmed to international media that agents “executed a search and seizure on Nygard offices in California and New York”.

Hours later, it was announced that Mr Nygard would step down as chairman and divest ownership of his company, Nygard International, "recognising the priority of the welfare of the thousands of Nygard employees, retail partners, loyal customers, vendors, suppliers and business partners."

A New York judge, meanwhile, has granted a request by Mr Nygard’s lawyers for a pre-motion conference before they file a motion to dismiss a lawsuit that accuses their client of raping ten women. The meeting is scheduled for March 5, according to court documents.

The impact of the lawsuit hit Mr Nygard’s business yesterday with Dillard’s, an American department store chain, saying in a statement that it has “refused current deliveries, cancelled all existing orders and suspended all future purchases from Nygard” in light of the allegations.

Citing anonymous law enforcement officials, The New York Times reported that Mr Nygard has been under investigation by a joint child-exploitation task force of the FBI and NYPD for at least five months.

“At least four women who have accused Mr Nygard in a recent lawsuit of sexually assaulting them when they were 14 and 15 in the Bahamas have also met with the task force,” the paper reported. The Times further said the FBI and Department of Homeland Security investigated Mr Nygard previously, though both investigations fizzled.

“On Tuesday morning, FBI agents and the police were in the lobby and the sixth floor of the Nygard building near Times Square. About eight vehicles with federal parking placards were outside,” the paper reported.

Mr Frydman, reacting to the raids, said: “Nygard welcomes the federal investigation and expects his name to be cleared. He has not been charged, is not in custody and is cooperating with the investigation.”

Six women made complaints to Bahamian police about Mr Nygard last year. Chief Superintendent of Police Solomon Cash, head of the Central Detective Unit, said last week the allegations are still under investigation.  

The lawsuit filed on February 13 in New York claimed Mr Nygard sexually assaulted ten women, mostly at Nygard Cay during the ‘pamper parties’ he held there. The suit claims Mr Nygard preyed on young, impoverished Bahamian girls and paid them hush money. Eight of his alleged Bahamian victims were between 14 and 18 when they were raped, according to the suit. 

The New York Times, in a recent report, explored the role billionaire Louis Bacon and his associates played in pushing the sexual assault allegations, revealing they have spent millions to secure and find alleged victims. In his legal filing last week Thursday ahead of a motion to dismiss the lawsuit, Mr Nygard’s lawyer, Elkan Abramowitz, said the complaint “represents the latest attempt (in a long-running campaign) by Louis Bacon, a billionaire hedge fund manager, to inflict devastating harm on Mr Nygard and the Nygard business.”

“As set forth in a lawsuit that Mr Nygard recently filed against Mr Bacon in this district…Mr Bacon’s efforts to destroy Mr Nygard have included offering bribes to women to induce them to falsely claim that Mr Nygard sexually abused them and find other women who are willing to do the same,” he wrote in a memo to US District Judge for the Southern District of New York, Elgardo Ramos.

“Indeed, one such woman has described, in a sworn statement, being offered $10,000 for ‘made up and false criminal sex stories involving Mr Nygard’. This lawsuit––which defendants understand is being funded by Mr Bacon––arises out of Mr Bacon’s efforts to pay witnesses to make up stories about non-existent sexual assaults. If this case proceeds beyond our motion to dismiss, Mr Nygard would prove that these allegations are complete fabrications.”

Mr Nygard’s lawyer argued the US district court lacks jurisdiction to hear the case.

“None of the corporate defendants is incorporated in, has its principal place of business in, or has such substantial contacts with New York so as to render it ‘at home’ in the state,” he wrote. “Likewise, Mr Nygard is not a domiciliary of New York, owns no property in New York, is not alleged to have engaged in any misconduct that arises out of activities in New York and lacks the type of substantial contacts that would render him ‘at home’ in New York. Mr Nygard is also not a citizen or a permanent resident of the US.”

Mr Abramowitz said the case has other defects, including that the complaint asserts “claims that are time-barred.” He argues that the complaint further contains “immaterial, impertinent or scandalous matter,” citing claims that Mr Nygard paid off officials here in The Bahamas.

“In addition to being false, these scandalous allegations are conclusory and have no bearing on any issues in this case,” he wrote.

“They should therefore be stricken, along with other, comparable scandalous and irrelevant allegations in this complaint.”