US Court dismisses claim by Presidential yacht owner

The Supreme Court of the State of New York has dismissed a legal complaint against FE Partners, LLC, (FE) that alleged it tried to improperly wrest control of the former Presidential Yacht, the U.S.S. Sequoia. The Hon. Charles E. Ramos ruled that a complaint filed by the owner of the Sequoia "is dismissed in its entirety."

The owner is lawyer Gary Silversmith, who had secured a $5 million loan from FE in March, 2012, which included a five-year option to purchase her. Presenting what Silversmith claimed was an unsolicited offer for the yacht by Gazprom to purchase and take her to St Petersberg, Russia, FE was persuaded to provide the funding. FE, which provides capital to preserve and maintain assets with historical value to the USA, was "interested in preserving the Sequoia and keeping it in the United States", said its director Michael Cantor in his statement to court.

What followed was a turbulent time for the yacht’s lenders, explained Cantor. Not only did it discover Silversmith had previously defaulted on an outstanding loan for Sequoia, leading to a redraft of the terms of the loan in July 2012, but that crew were owed $25,000 in overdue wages and that Silversmith had yet more debts undisclosed.

FE subsequently issued 27 default notices to Silversmith. In response, Silversmith filed a complaint, stating that FE’s loan was not sincere, but instead an attempt to get the yacht at a reduced price. FE contested this was never the case and that Silversmith had repeatedly violated the terms of its loan agreement with FE.



The judge dismissed the case on 24 January, just a day after receiving FE’s defence delivered by Cantor.

"We are pleased that the New York Supreme Court promptly dismissed this unfounded complaint, so that we can again devote our attention to preserving a treasured piece of American history that many call 'the floating White House,'" said Richard Graf, legal counsel for FE Partners.   

The 32m John Trumpy designed yacht was built in 1925 in New Jersey. Her history as a yacht in service of US presidents from the time of Herbert Hoover through to Gerald Ford is peppered with anecdotes. President Kennedy celebrated his last birthday on her and Nixon played "God Bless America" on a piano in the Sequoia upon deciding to resign from the White House. She has also hosted world leaders from Winston Churchill to Leonid Brezhnev.

Related Links

Documents related to the case can be downloaded on the Supreme Court of New York's Website
The American Superyacht Forum takes place from 14-16 May

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