Duo Accused Of Extorting Money From Blackstone Exec
Posted on Friday, 22 of August , 2008 at 8:21 pm
MANHATTAN—Two men has been arrested for attempting to extort money from a top executive with the Blackstone Group, a global asset manager and provider of financial advisory services.
Stuart Ross, 71, of Aventura, Fla., and Stuart Jackson, 80, of Yale Drive, Manhasset, have each been charged with one count of second degree attempted grand larceny and one count of third degree grand larceny, both class D felonies, for their scheme to extort money from David Blitzer, who is Ross’s son-in-law and an executive with the Blackstone Group.
According to Manhattan district attorney Robert Morgenthau, the investigation leading to the arrests revealed that what began as Ross’ demand for Blitzer to give him $50,000 in June 2008, escalated to a demand for as much as $11 million by August 2008. Jackson, Ross’ attorney, provided an imprimatur of legality to Ross’ threats to ruin Blitzer’s life, personally and professionally, unless Blitzer paid off Ross.
Ross is a non-practicing attorney. He has been estranged from his daughter, Allison Blitzer and her husband, David Blitzer, since approximately 2002, and has never met their children.
In December 2007, after years without speaking to either his daughter or her husband, Ross contacted David Blitzer and asked for seed money for a new business venture. In January and May 2008, allegedly in response to repeated requests by Ross, Blitzer sent $15,000 and then $50,000 to Ross. Blitzer told Ross that the $50,000 sent in May would be the last time he would give Ross money.
In June 2008, however, Ross demanded more money from Blitzer. In e-mails, voice-mails, and telephone conversations, Ross allegedly told Blitzer that unless Blitzer gave him another $50,000 to $100,000, Ross would harass Blitzer with incessant phone calls, and would contact Blitzer’s supervisors, the media, and law enforcement with accusations that he claimed would damage Blitzer’s reputation, ruin his career, and even lead to his arrest.
For example, on June 23, Ross allegedly left Blitzer a voice mail message in which he told Blitzer that if Blitzer did not send him money, Ross would “commit open warfare” against Blitzer. In another message the next day, Ross continued to verbally threaten Blitzer, prosecutors said.
By July, Ross had allegedly enlisted the assistance of Jackson to help obtain money from Blitzer. Jackson is a longtime friend of Ross, who lists his law office’s address as 70 East 55th Street in Manhattan. Ross scolded Blitzer for not returning Jackson’s repeated calls, Morgenthau said.
On Aug. 5, as a “settlement offer,” Jackson allegedly told Blitzer’s attorney, Roger Stavis, that if Blitzer gave Ross $5.5 million, Ross would forego any rights of visitation he might have with respect to his daughter and grandchildren and would not communicate any further with Blitzer or anyone else at the Blackstone Group. Ross had allegedly never before expressed to Blitzer any interest in resuming a relationship with his daughter or in even meeting his grandchildren, much less obtaining formal visitation rights with them.
On Aug. 6, in a letter to Stavis, Jackson doubled the demand. For $5.5 million, Ross would “waive his rights of communication with his daughter and grandchildren,” and for an additional $5.5 million, he would agree to stop contacting Blitzer and Blackstone.
Before responding to Jackson’s letter, Stavis contacted the Manhattan District Attorney’s Office. The following week, Stavis and Jackson discussed a meeting between themselves and their clients. In a letter proposing a time and place for that meeting, Jackson demanded that by Aug. 15, Blitzer would have to commit to paying $5.5 million to Ross, or else the offer contained in Jackson’s Aug. 6 letter would expire.
On Aug. 21, Jackson and Ross met with Blitzer and Stavis in Manhattan. At the end of the meeting, they had exacted an agreement from Blitzer that Blitzer would pay $400,000 for Ross to refrain from attempting to contact his daughter, grandchildren, Blitzer and anyone else at the Blackstone Group, Morgenthau said. Jackson and Ross also received a $50,000 check from Blitzer at the meeting. 8-22-08
Don’t forget to subscribe to the NCG Daily Digest, delivered daily to your inbox. Selected special investigative reports and commentaries are now available only to paid subscribers. See the ad at our home page for details. For additional info, contact news@northcountrygazette.org
northcountrygazette.org |
