by Charlie Gasparino Info
Charlie Gasparino is a senior correspondent for Fox Business Network. He is a columnist for The Daily Beast and a frequent contributor to the New York Post, Forbes, and other publications. His latest book, Bought and Paid For, is about the Obama administration and Wall Street.
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A lawsuit accuses the billionaire dealmaker of racism, escort use, and gambling against his client, Tiger Woods. Lies, Forstmann tells Charlie Gasparino exclusively, from a "shakedown artist."
In more than 30 years as one of the world's top dealmakers, Teddy Forstmann has made many brilliant bets—his stance against junk bonds in the 1980s, Gulfstream Aerospace in the 1990s, calling the credit crisis in 2008—and like any Wall Street veteran, more than a few clunkers.
But one of his worst calls, he says, involves a friendship with a man named James Agate. Forstmann says that decision is now costing him dearly—not necessarily in money (yet), but in reputation.
Agate filed a lawsuit in Los Angeles County Court in October accusing Forstmann, who now runs the sports management giant IMG, of breaching a previous agreement to steer business Agate's way. But that isn't what has Forstmann so concerned. Rather it's salacious allegations leveled by Agate: Forstmann had a massive and nasty gambling habit (wagering millions over the years), he was dipping into IMG company funds to pay off loses; Forstmann bet against IMG's clients, including Tiger Woods; Agate helped procure escorts for Forstmann; and Forstmann, who has adopted two African children, is a racist, and often referred to Woods as a "shvartze," a dismissive Yiddish term.
In a wide-ranging interview with The Daily Beast, Forstmann denied all the allegations, and vowed revenge against Agate, whom he called a "stalker," a "shakedown artist," and a "scumbag lowlife." But as Agate's charges have made their way into the press, Forstmann has had to defend himself before clients, particularly those of IMG, which represents superstars such as Woods and Roger Federer, both of whom Agate tied to Forstmann's alleged gambling habit, and with foreign government officials. (IMG is looking to strike deals in countries such as India, where government officials are queasy about all the controversy, Forstmann says.)
"At first this was an annoyance," Forstmann told The Daily Beast in his first public remarks on this feud. "But now the sheer madness of it all is having an impact on my business. By the way, I didn't even know what shvartze meant before all this came about. Can you imagine I adopt two black kids without a wife and I'm a racist? (Forstmann, a lifelong bachelor, is now dating celebrity chef Padma Lakshmi.) That shows he's really insane."
Forstmann said says he met Agate around 15 years ago at a country club through his brother Tony, and as both are avid golfers and tennis players, they developed a friendship.
Agate, for his part, referred all questions about the lawsuit and Forstmann's charges to his attorney, who didn't return calls for comment yesterday.
“Can you imagine I adopt two black kids without a wife and I'm a racist?”
But along the way, the friendship took some interesting turns. Forstmann said he tried to help Agate's printing company get new business ("I had connections but they didn't go anywhere because his company is a piece of shit," Forstmann told me), and when Agate's business began to founder, he says he unsuccessfully tried to help Agate in a related investment.
Ted Forstmann (Michael Loccisano / Getty Images)
Agate in turn helped Forstmann indulge in a hobby the dealmaker admits he has had since his college days—sports gambling—mainly by placing bets for Forstmann through offshore bookies. And that's where Forstmann's relationship with Agate took a dangerous turn. Fortsmann, for his part, concedes he wagered bets through Agate, but only in the thousands of dollars, a small fraction of his net worth, rather than the millions Agate alleges. "My lawyers tell me I made more than $80 million over the past eight years," he said "As for my total net worth, you can check Forbes 400." That list of the world's wealthiest people shows Forstmann to have a fortune of more than $1 billion.
"Can you imagine that, I bet a few bucks on sports'' during that time, Forstmann added with a laugh.
12 October 19, 2010 | 2:03am Twitter Emails
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Your email has been sent. Thanks for recommending The Daily Beast! X Close Share $(function(){ var share_object = SHARETHIS.addEntry({ title: unescape('Ted%20Forstmann%20Lets%20Rip'), summary:unescape('A%20lawsuit%20accuses%20the%20billionaire%20dealmaker%20of%20racism%2C%20escort%20use%2C%20and%20gambling%20against%20his%20client%2C%20Tiger%20Woods.%20Lies%2C%20Forstmann%20tells%20Charlie%20Gasparino%20exclusively%2C%20from%20a%20%5C%22shakedown%20artist.%5C%22'), content:unescape('A%20lawsuit%20accuses%20the%20billionaire%20dealmaker%20of%20racism%2C%20escort%20use%2C%20and%20gambling%20against%20his%20client%2C%20Tiger%20Woods.%20Lies%2C%20Forstmann%20tells%20Charlie%20Gasparino%20exclusively%2C%20from%20a%20%5C%22shakedown%20artist.%5C%22'), url:'http://www.thedailybeast.com/blogs-and-stories/2010-10-19/billionaire-teddy-forstmann-im-being-extorted-by-a-shakedown-artist/' }, {button:false, embeds:true}); var element = document.getElementById("sharethis"); share_object.attachButton(element); share_object.attachButton(document.getElementById("sharethis_1")); share_object.attachChicklet("twitter", document.getElementById("twitter_1")); share_object.attachChicklet("twitter", document.getElementById("twitter_2")); }); var OutbrainPermaLink=document.location.href.replace(document.location.search, '').replace(/\/\d+\/$/,'/').replace(document.location.host, 'thedailybeast.com'); var OB_Template = "The Daily Beast"; var OB_demoMode = false; var OBITm = "1255455386150"; var OB_langJS ='http://widgets.outbrain.com/lang_en.js'; if ( typeof(OB_Script)!='undefined' ) OutbrainStart(); else { var OB_Script = true; var str = ''; document.write(str); } Teddy Forstmann, Shakedown, James Agate, Theordore Forstmann, Img, Escorts, Roger Federer, Extortion, Tiger Woods, Lawsuit, Racism (–) Show Replies Collapse Replies Sort Up Sort Down sort by date: flyoverlandYou don't get to his level without cracking a few eggs, however, my experience in high finance was always that he was a straight shooter and very smart. I always wondered what he thought about his portrayal in "Barbarians at the Gate?" One would think someone with that kind of dough could give a shit what people think. It does show the character of the man because obviously he does care about his reputation. In business, that is still and always will be your most valuable capital.
Flag It | Permalink | Reply | (–) Show Replies Collapse Replies 9:26 am, Oct 19, 2010 ronald64It's hard to sift through the gossip, a Gossiparino specialty, to tell if there's a story here. So what if the guy gambled and hired escorts? That qualifies him for public office, not a lawsuit. What part of flyoverland do you live in? I live in California and would like to relocate to a place where the political candidates aren't high on narcissism or medical marijuana. What do you think of Meg-alomania spending $140 mil of her own on her campaign? It doesn't add up in my Quickbooks.
Flag It | Permalink | Reply | (–) Show Replies Collapse Replies 10:39 am, Oct 19, 2010 flyoverlandI am in Missouri. If you get away from the metro areas which are strongly Dem controlled, it is a wonderful place. Our problem here isn't with candidates buying elections with their own money, but with ours. We have two Sen. candidates and both are from political royalty. One, the Dem (Carnahan) just saw her brother (not her brother the Congressman, the other one) get $107 million in Federal tax credits to build a "wind farm". We have a viable two party system. The Gov. is a Dem, the legislature is GOP. We have a balanced budget. The metro areas are hurting with the rest of the rust belt as union jobs (Ford, Chrysler, etc.) have left the state. We are still trying to learn that the old rules don't apply. We have plenty of water, grow our own food, have great medical centers (Washington U. in STL is the third best med school and recently saved my wife's life when she was diagnosed with a serious cancer). Our schools are still pretty good, but the teachers unions keep trying. Housing is very affordable. I own a business in Beverly Hills and was looking at nearby condos and I paid less for my 7000 sq ft home here with a pool, 2 acre lot in the toniest part of town. We used to make more cars than any state save Michigan. We used to be first in shoes, first in booze and last in the American League. Now we cheer when we make the top ten.
Flag It | Permalink 11:17 am, Oct 19, 2010 ronald64I suspected you came from a common sense place like Missouri. My sister just moved from metro St. Louis area to west L.A. and was in shock at housing prices. the real irony is that she actually made more money at the job in St. Louis. Her house is currently empty and I may occupy it if she doesn't return herself. I tried to discourage her from moving out here but we have three other siblings in southern Cal. so she's giving it a try. I'm done with this place- the traffic, the politics, the bs. It seems that every other person here works for some level of government. It's shocking that the state is insolvent. Who would have thought?
Flag It | Permalink 12:06 pm, Oct 19, 2010 flyoverlandLet me know when you get here and I will buy you dinner on the Hill, the closest you will get to Italy without crossing the Atlantic.
Flag It | Permalink 12:55 pm, Oct 19, 2010 nvhorsemanHey Gasparino: You're a good reporter most of the time. Is this s..t all you have to comment on. We live in serious times. This article should be in some supermarket tabloid, not coming from a guy who has the talent to write something of substance. This is a civil suit thing here...not something that affects any of us directly. Come on, do your job.
Flag It | Permalink | Reply 9:36 am, Oct 19, 2010 mauibuckySorry, a prominent Jewish billionare never heard the word "Shvartze" ? No way do I buy that.
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X CloseIn a wide-ranging interview with The Daily Beast, Forstmann denied all the allegations, and vowed revenge against Agate, whom he called a "stalker," a "shakedown artist," and a "scumbag lowlife." But as Agate's charges have made their way into the press, Forstmann has had to defend himself before clients, particularly those of IMG, which represents superstars such as Woods and Roger Federer, both of whom Agate tied to Forstmann's alleged gambling habit, and with foreign government officials. (IMG is looking to strike deals in countries such as India, where government officials are queasy about all the controversy, Forstmann says.)
"At first this was an annoyance," Forstmann told The Daily Beast in his first public remarks on this feud. "But now the sheer madness of it all is having an impact on my business. By the way, I didn't even know what shvartze meant before all this came about. Can you imagine I adopt two black kids without a wife and I'm a racist? (Forstmann, a lifelong bachelor, is now dating celebrity chef Padma Lakshmi.) That shows he's really insane."
Forstmann said says he met Agate around 15 years ago at a country club through his brother Tony, and as both are avid golfers and tennis players, they developed a friendship.
Agate, for his part, referred all questions about the lawsuit and Forstmann's charges to his attorney, who didn't return calls for comment yesterday.
“Can you imagine I adopt two black kids without a wife and I'm a racist?”
But along the way, the friendship took some interesting turns. Forstmann said he tried to help Agate's printing company get new business ("I had connections but they didn't go anywhere because his company is a piece of shit," Forstmann told me), and when Agate's business began to founder, he says he unsuccessfully tried to help Agate in a related investment.
Ted Forstmann (Michael Loccisano / Getty Images)
Agate in turn helped Forstmann indulge in a hobby the dealmaker admits he has had since his college days—sports gambling—mainly by placing bets for Forstmann through offshore bookies. And that's where Forstmann's relationship with Agate took a dangerous turn. Fortsmann, for his part, concedes he wagered bets through Agate, but only in the thousands of dollars, a small fraction of his net worth, rather than the millions Agate alleges. "My lawyers tell me I made more than $80 million over the past eight years," he said "As for my total net worth, you can check Forbes 400." That list of the world's wealthiest people shows Forstmann to have a fortune of more than $1 billion.
"Can you imagine that, I bet a few bucks on sports'' during that time, Forstmann added with a laugh.
12 October 19, 2010 | 2:03am Twitter Emails
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Enter the recipients' email addresses, separated by commas:
You don't get to his level without cracking a few eggs, however, my experience in high finance was always that he was a straight shooter and very smart. I always wondered what he thought about his portrayal in "Barbarians at the Gate?" One would think someone with that kind of dough could give a shit what people think. It does show the character of the man because obviously he does care about his reputation. In business, that is still and always will be your most valuable capital.
It's hard to sift through the gossip, a Gossiparino specialty, to tell if there's a story here. So what if the guy gambled and hired escorts? That qualifies him for public office, not a lawsuit. What part of flyoverland do you live in? I live in California and would like to relocate to a place where the political candidates aren't high on narcissism or medical marijuana. What do you think of Meg-alomania spending $140 mil of her own on her campaign? It doesn't add up in my Quickbooks.
I am in Missouri. If you get away from the metro areas which are strongly Dem controlled, it is a wonderful place. Our problem here isn't with candidates buying elections with their own money, but with ours. We have two Sen. candidates and both are from political royalty. One, the Dem (Carnahan) just saw her brother (not her brother the Congressman, the other one) get $107 million in Federal tax credits to build a "wind farm". We have a viable two party system. The Gov. is a Dem, the legislature is GOP. We have a balanced budget. The metro areas are hurting with the rest of the rust belt as union jobs (Ford, Chrysler, etc.) have left the state. We are still trying to learn that the old rules don't apply. We have plenty of water, grow our own food, have great medical centers (Washington U. in STL is the third best med school and recently saved my wife's life when she was diagnosed with a serious cancer). Our schools are still pretty good, but the teachers unions keep trying. Housing is very affordable. I own a business in Beverly Hills and was looking at nearby condos and I paid less for my 7000 sq ft home here with a pool, 2 acre lot in the toniest part of town. We used to make more cars than any state save Michigan. We used to be first in shoes, first in booze and last in the American League. Now we cheer when we make the top ten.
I suspected you came from a common sense place like Missouri. My sister just moved from metro St. Louis area to west L.A. and was in shock at housing prices. the real irony is that she actually made more money at the job in St. Louis. Her house is currently empty and I may occupy it if she doesn't return herself. I tried to discourage her from moving out here but we have three other siblings in southern Cal. so she's giving it a try. I'm done with this place- the traffic, the politics, the bs. It seems that every other person here works for some level of government. It's shocking that the state is insolvent. Who would have thought?
Let me know when you get here and I will buy you dinner on the Hill, the closest you will get to Italy without crossing the Atlantic.
Hey Gasparino: You're a good reporter most of the time. Is this s..t all you have to comment on. We live in serious times. This article should be in some supermarket tabloid, not coming from a guy who has the talent to write something of substance. This is a civil suit thing here...not something that affects any of us directly. Come on, do your job.
Sorry, a prominent Jewish billionare never heard the word "Shvartze" ? No way do I buy that.
Thank you. As a first time user, your comment has been submitted for review. It can take anywhere from a few hours to a day or two for your comment to be reviewed, depending on the time of week and the volume of comments we receive.
Please log in to leave comments.
America's 50 Divorce Capitals
The Daily Beast is dedicated to news and commentary, culture, and entertainment. We carefully curate the web’s most essential stories and bring you original must-reads from our talented contributors.
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Howard Kurtz is The Daily Beast's Washington bureau chief. He also hosts CNN's weekly media program "Reliable Sources," Sundays at 11 am ET. The longtime media reporter and columnist for The Washington Post, Kurtz is the author of five books.
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Charlie Gasparino is a senior correspondent for Fox Business Network. He is a columnist for The Daily Beast and a frequent contributor to the New York Post, Forbes, and other publications. His latest book, Bought and Paid For, is about the Obama administration and Wall Street.
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