There have been lots of conversations among Seagram alumni since it was announced on Friday that Edgar Bronfman Jr. was convicted of insider trading in a French court.
The news reports I read raised a number of questions. According to Crain’s NY Business, “The conviction came even though the prosecutor had recommended acquittal…” That’s curious.
The report went on to say that “the prosecutor felt the executives did not have enough information themselves about the company’s health.” What? Are we talking Edgar Jr. here? Didn’t have enough information after having bet the heritage and fortune on a guy who referred to himself as Master of the Universe?
I wonder what the judge heard and saw that the prosecutor missed.
Edgar Jr. sometimes referred to the ease and depth with which people in Hollywood were capable of lying. He described studio executives as people who can swear on their mother’s life that it is raining outside when you and they know it’s a beautiful sunny day. Yet, he couldn’t wait to do business there.
Every year since the 1950’s, Seagram ran the Seagram Family Association (SFA) meeting, an annual session for senior managers and distributor principals. At what turned out to be the last SFA, while it wasn’t known at the time, the deal to sell the company was in the works. Rumors were widespread and felt to have more than the ring of truth. Every conversation, among distributors and management alike, dealt with the speculation. Junior was at the event but hardly visible. Stayed in his suite the entire time, and based on subsequent events, was probably cutting the deals.
He showed up at the last session where customarily the …
Lots of readers have commented on the last posting about the Bronfman sisters and their $150 million problem with what has been described in the press as a cult. If you didn’t work there and experience the good, bad and ugly, it’s unimportant. But for those of us who were at Seagram it’s at least interesting to try to figure it out. (The rest of you can hit the back button.)
Comments I received ranged from glee at the 3rd generation’s continued problems, with many references to “shirt sleeves to shirt sleeves”. (See March 13, 2010 posting.)
One reader took me to task for passing the article along:
Unnecessary to kick them now after all the years they were the Liquor business…it’s not news it’s GOSSIP!
The most interesting comment was this one:
The third generation Bronfmans seems to have a spectacularly pathological need to piss away their fortune. Amazing.
So, after much thought and consideration, I’ve come to the conclusion that what they have done with their inheritance — the company or their personal fortunes — is their business and probably more to pity than to scorn. I found this online in an article from the New York Observer (Aug 10, 2010):
Inherited millions are often fraught with an array of pathologies and dysfunctions. In 1987, Joanie Bronfman, then a Brandeis philosophy doctoral candidate and the daughter of Edgar Bronfman Sr.’s cousin Gerald, investigated the peculiar psychoses of the rich in her dissertation The Experience of Inherited Wealth: A Social-Psychological Perspective. In the course of her research, she attended “wealth conferences” and interviewed heirs and heiresses. Drawing from her own experience of growing up “visibly wealthy” and full …
I’m away this week but saw this lead story in Wine & Spirits Daily today. I’m sharing it with you with permission from Meghan. My comments will be posted soon.
Wine & Spirits Daily
October 13, 2010
How a Cult Allegedly Swallowed $150m of the Seagram Fortune
Vanity Fair has published a detailed, fascinating account of the Bronfman sisters’ alleged involvement with a so-called cult, resulting in a loss of roughly $150 million over the past 6 years. The article sums up how the heiresses to the Seagram fortune, Sara and Clara Bronfman, became involved with nxivm (pronounced Nexxium) and its founder Keith Raniere. It also speculates about their relationship with their father and how Raniere “seems also to have tapped into a complex emotional rift between the sisters and their father, billionaire philanthropist Edgar Bronfman Sr.” Note that Raniere, Edgar Bronfman Sr., Sara and Clare did not comment for this story.
“What seems clear, from court documents and interviews with ex-nxivm members–and those who have come into conflict with the group and its mysterious guru–is that Sara and Clare Bronfman could be in serious trouble,” says the article.
The author, Suzanna Andrews, says that as much as $150 million was taken out of the Bronfmans’ trusts and bank accounts over the past 6 years, according to legal filings and public documents. $66 million was allegedly used to cover Raniere’s losses in the commodities market, $30 million to buy real estate in Los Angeles and around Albany, $11 million for a private jet, and millions more to fund “a barrage of lawsuits across the country against nxivm’s enemies.”
A number of people have reportedly come forward in recent …