Ira Rennert, the owner of the sprawling Sagaponack estate Fairfield, and his investment firm were ordered Friday to return $118 million to Magnesium Corporation of America, CNBC reports.
A federal jurt determined Rennert and his Renco Group breached their fiduciary duty to MagCorp prior to its 2001 bankruptcy, according to CNBC. Rennert was accused of looting the company and using a portion of the proceeds to build Fairfield, which is often cited as the largest single-family residence in America.
Rennert is personally being held liable for $16 million and Renco is on the hook for $102 million, CNBC stated. If the plaintiffs are also awarded interest, the figure could rise significantly.