John Paulson secures major victory in bitter fight with ex-business partner as arbitrator orders $48M payback

Billionaire investor John Paulson won a major victory in his bitter fight with a former business partner after an arbitrator ordered about $48 million paid back to him and concluded he was justified in firing one of his top executives.The decision, revealed Monday, is the latest twist in Paulson’s long-running feud with Fahad Ghaffar, a former top aide who helped run Paulson’s Puerto Rico empire before the men fell out with each other.An arbitrator found that Ghaffar engaged in “intentional misconduct and fraud” and was properly terminated by Paulson in July 2023, according to a filing submitted Monday in federal court in Puerto Rico.Ghaffar was ordered to pay back $35.66 million in profits tied to an investment known as Dynamic Payments and repay another $112,936 connected to American Express rewards points that the arbitrator found were improperly retained.Carolyn Demarest, the retired New York judge who was serving as the arbitrator, also found that Ghaffar committed fraud in connection with Paulson’s $11.48 million investment in software company Innoveo, according to a court filing.All told, Ghaffar owes Paulson about $48 million, under the arbitrator’s decision.“Following a three-week hearing, the Arbitrator ruled that Mr.Paulson proved, by clear and convincing evidence, that Ghaffar was terminated for Cause, finding that Ghaffar committed fraud, securities fraud, and violated both his fiduciary and contractual obligations to Mr.

Paulson,” Paulson’s lawyer said in a statement to The Post.Paulson, who made billions betting against the housing market before the 2008 financial crisis, first hired Ghaffar in 2013 to help oversee a growing portfolio of hotels, resorts and real estate investments on the island.The relationship eventually deteriorated into an ugly courtroom battle.In 2023, Ghaffar sued Paulson, claiming the billionaire reneged on a deal that would have given him a 50% stake in F40, a luxury car dealership venture in Puerto Rico.Ghaf...