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Lehman unloads mansion for $100

5/02/2009

While Florida real estate prices have sloped downwards lately, one particular markdown in November went beyond them all - and the person who sold it raised more than a few eyebrows.

Former Lehman Brothers Chief Executive Richard Fuld sold his mansion in Hobe Sound - worth US$13.3m (A$20m) - to his wife for just $100, according to media reports that first surfaced on Cityfile.com The couple bought the coastal property jointly in 2004, according to reports.

Fuld, 62, is possibly facing civil lawsuits relating to his role leading the investment bank until its recent collapse into Chapter 11 proceedings last September. Lehman executives have faced accusations that they misled investors about the state of the company.

According to the New York Times, some legal experts believe the massive markdown on the 3.3-acre home could be a move to transfer assets away from Fuld because he fears investor lawsuits or a bankruptcy.

Fuld was awarded US$22m (A$33m) in fiscal 2007, but did not take any bonus or severance when he left at the end of last year.

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