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Home , Bob Weinstein, Harvey Weinstein

cc Monday, October 16, 2017 latimes.com/news

Harvey Weinstein faces new criminal probe as his company gets a financial lifeline from L.A. billionaire

By SAMANTHA MASUNAGA, RYAN FAUGHNDER AND RICHARD WINTON TIMES STAFF WRITERS he Weinstein Co., roiling from T and allegations against ousted co-founder , has secured some much-needed financial relief from billionaire Thomas Barrack. The mini-studio announced Monday that it is has entered an agreement for Barrack’s private equity firm Colony Capital to pro- vide a cash infusion to the New Movie producer Harvey Weinstein was fired from the Weinstein Co. on Oct. 8. (Jordan Strauss / Invision) York-based company. Colony and the Weinstein Co. The deal with Barrack, a close swiftly lost board members and — known for producing films ally of President Trump, is a sign TV deals in the wake of the scan- such as “Silver Linings Play- of how dire the situation was for dal. book,” “” and the Weinstein Co., outside bankers “There's a desperation that is the series told The Times. The Weinstein dense in the air coming from the “” — also said Co. had already come on hard Weinstein Co.'s headquarters,” that they have entered a negotia- times because of the poor perfor- said Eric Schiffer, chief executive tion period for a sale of all or part mance of its films, and the mount- of the Patriarch Organization, a of the beleaguered firm’s assets. ing allegations against its former private equity firm. “It’s like being Financial details were not dis- co-chairman have further threat- on the Hindenberg when every- closed. ened its survival. The company has one’s jumping off.” The mounting woes include criminal probes into Weinstein’s behavior. The New York Police Department has opened an investi- gation into a 2004 rape allegation and is reexamining a more recent sexual assault allegation that was previously rejected by prosecutors, according to a law enforcement source. In Britain, actress Lysette An- thony filed a formal crime report with Merseyside Police in the United Kingdom alleging she was THOMAS BARRACK, founder of Colony Capital, has agreed to raped by the movie mogul at her provide a cash infusion to Weinstein Co. and is negotiating to buy London home in the late 1980s. all or part of the studio’s assets. (Evan Vucci / ) London's Metropolitan police acknowledged that on Oct. 11 they harassment by Weinstein. Last skepticism from inside the studio opened a formal probe into an alle- week, published and from the industry. gation from that period. its own investigation in which was not men- Los Angeles Police Capt three women accused him of rape. tioned in the Colony Capital an- Hayes, who oversees the Robbery Numerous other women have also nouncement, which characterized Homicide Division that handles come forward with allegations. the capital infusion as a way to sta- high-profile sex crimes, said the The producer has apologized bilize the firm. department doesn't have any active for some of his behavior and de- “We believe that Colony's in- investigations into Harvey Wein- nied the rape claims. But backlash vestment and sponsorship will help stein. against him and his company has stabilize the company's current op- "We absolutely encourage any- been swift. On Oct. 8, Weinstein erations, as well as provide com- one who may be a victim of sexual Co. fired him. On Saturday, he fort to our critical distribution, pro- assault to come forward and report was expelled from the Academy of duction and talent partners around the crime," Josh Rubenstein, LAP- Motion Picture Arts and Sciences. the world,” Weinstein Co. board D’s director of communications. Harvey Weinstein’s brother, member Tarak Ben Ammar said in Weinstein has denied all allega- Bob, now the lone chairman of a statement. “Colony's successful tions of nonconsensual sex. their company, has been scram- experience and track record in me- The negotiations with Colony bling to save his namesake studio. dia and entertainment will be in- Capital come less than two weeks Bob Weinstein said Friday that valuable to the company.” after the New York the company was not shutting Barrack and Colony Capital are Times published an investigation down or for sale, but his statement no strangers to the Weinsteins or detailing decades of alleged sexual was immediately met with heavy to Hollywood. In 2010, a group of investors including Colony Capital looking increasingly her in a bathrobe and asked if she and construction magnate Ronald bleak. Amazon Studios cut ties could watch him shower or he Tutor bought film and TV firm with Weinstein Co. last week, could give her a massage. — which was founded dooming a high-profile television The article also said Weinstein by Harvey Weinstein and his project from director David O. reached at least eight settlements brother, Bob — from Walt Disney Russell. Amazon had ordered two with women after being confronted Co. (The Weinsteins had left seasons of the untitled drama. Am- with sexual harassment allega- Miramax in 2005.) azon will continue with a second tions. Barrack sold Miramax to Qatar- show it was co-producing with The New Yorker report said based broadcaster BeIN Media Weinstein Co., but it will go for- three women alleged Weinstein Group last year. Colony also ward without the studio’s involve- had raped them, and that others helped set up a TV joint venture ment. expressed suspicion that the pro- between Miramax and the Wein- On Friday, investment banking ducer had retaliated against them stein Co. in 2013. firm Goldman Sachs said it was for refusing his advances or com- “We believe the [Weinstein] exploring options for what to do plaining about him. company has substantial value and with its small stake in the studio. A growth potential,” Barrack said in Goldman Sachs spokesman has a statement. “We will help return said the firm’s stake is now worth the company to its rightful iconic less than $1 million. position in film “Tom Barrack loves distressed and television industry.” deals, and this is a fire sale with a The billionaire, who made his capital F,” said Lloyd Greif, CEO fortune in real estate, also does not of Los Angeles investment bank shy away from controversial fig- Greif & Co. ures. He was a staunch supporter The allegations against Harvey of Trump’s presidential campaign, Weinstein have been sordid, and landing a major speaking gig at the they have led numerous women to Republican National Convention come forward with additional alle- last year. He also chaired Trump’s gations against him and others in inauguration committee. In sharp Hollywood. His accusers include contrast, Harvey Weinstein was a Angelina Jolie, big fundraiser for Democratic poli- and . ticians including . In report, In 2008, Barrack saved Michael actress described Jackson’s Neverland Ranch from meeting Weinstein at a Beverly foreclosure when Colony acquired Hills hotel for what she thought a loan that was in default. was a business breakfast meeting. Barrack swooped in for the Instead, she said, Weinstein had Weinstein Co. as its future was her come up to his hotel room, met