Jilted Barneys heir alleges family evaded $20M in New York taxes — by falsely claiming late mother lived in Palm Beach
Bob Pressman – the 71-year-old grandson of Barney Pressman, who founded the now-defunct retail icon in 1923 – alleges in an explosive lawsuit that his family conspired to avoid New York state income and estate taxes by falsely claiming that his mother Phyllis Pressman resided in West Palm Beach, Fla.
In fact, the widow of retail legend Fred Pressman – who famously transformed his father Barney's men's suit business into a luxury empire in the 1960s – had been living year-round in her oceanfront mansion in Southampton, NY for the last six years of her life, the suit claims.
7 Bob Pressman stands next to his mother, Phyllis Pressman, at a dinner in 2009.
'Phyllis Pressman freely told the people around her that she did not like Florida and did not intend to make it her permanent home,' the complaint alleges.
The estate of Phyllis Pressman – who died last year at 95 and who, according to the suit, 'was renowned for her exacting and highly developed taste and sophistication' – is said to be worth upwards of $100 million, according to a source close to the case.
That includes the 2.3-acre, oceanfront spread at 346 Meadow Ln. in Southampton that's currently on the block for $38.5 million. Her swanky Upper East Side apartment, listed for $3.95 million, is in contract.
Some of the late matriarch's jewelry and artwork also are slated for auction this fall by Freeman's-Hindman. They will include pieces from Bulgari, Harry Winston and Van Cleef & Arpels; and paintings by American artists Frederick Carl Frieseke, Edward Henry Potthast, William Merrett Chase and Robert Reid.
7 Elizabeth-Pressman Neubardt was unveiling a new jewelry collection for Barneys in 2005.
Patrick McMullan via Getty Images
As exclusively reported by The Post. Bob Pressman had previously worked on an as-yet unpublished manuscript for an incendiary tell-all book that blamed his family for Barney's demise.
Pressman was cut out of his mother's will after years of family squabbling, capped by his refusal to participate in the alleged tax fraud, according to a source close to the case. A trust agreement drawn up by Phyllis's attorneys declared, 'Bob doesn't get anything for reasons he well knows,' a source close to the case told The Post.
7 Phyllis Pressman 'was renowned for her exacting and highly developed taste and sophistication.'
Michael Schwartz/New York Post
Bob's sisters Elizabeth and Nancy, who were buyers for Barneys, sued him several years after the retailer's 1996 bankruptcy, accusing him of cheating them out of $30 million from the business. Bob, who was in charge of the company's finances at the time, denied the allegations.
'The Pressman sisters are trying to reinvent issues that have been thoroughly reviewed, and resolved or dismissed in conjunction with the Barneys Inc. Chapter 11 case confirmed by the bankruptcy court over six months ago,' Bob Pressman said in a statement at the time. 'They simply do not like that result,' he added.
A New York judge awarded the sisters $11.3 million in 2002. Their brother appealed the award.
Meanwhile, Bob's tell-all manuscript accuses his brother Eugene Pressman – better known as Gene – of running Barneys into the ground with lavish spending projects, even as he allegedly spent his time partying through the 1980s at Studio 54.
At the time, Gene fired back, accusing his brother of having 'a casual relationship with the truth' and claiming 'Bob conveniently forgets he was in fact the co-CEO responsible for the financial stability of firm, a role in which by all measures he massively failed.'
7 Gene Pressman ran Barneys with his brother Bob after their father Fred passed away in 1996.
New York Post
The book proposal, by contrast, claims that Bob 'argued with his family all the time when the Barneys New York Madison Avenue store was being built,' protesting the massive tab that was being run up.
Bob's new lawsuit – which is only coming to light now after a judge unsealed it last week – claims that the allegedly tax-cheating members of the Pressman family could be liable for upwards of $50 million in back taxes and penalties.
An amended complaint filed in New York state Supreme Court in September lists Bob Pressman as a whistleblower under the New York False Claims Act, which could entitle him up to 30% of any recovery. He filed his original complaint last July.
According to the suit, Phyllis originally moved to West Palm Beach in 2000 – four years after her husband Fred died – when she married her second husband, philanthropist Joseph Gurwin.
Gurwin, whose fortune came from military equipment including gas masks and bulletproof vests, died in 2009. Phyllis continued to live in Palm Beach until 2018, when she moved back to New York full time, according to the suit.
7 Barneys was a luxury fixture on Madison Avenue.
Frank Leonardo/New York Post
In mid-2021, Phyllis Pressman 'successfully recruited' her children Gene, Elizabeth and Nancy to falsely assert that she lived most of the year in Palm Beach' in her estate's legal documents – after Bob had refused to do so, according to the complaint.
As part of the alleged scheme, Gene, Elizabeth and Nancy in late 2023 – just a few months before Phyllis died – helped move their mother to hospice care in Palm Beach 'when she was ill and should not have been traveling,' even as they transferred the Hamptons mansion to a limited liability company, according to the suit.
As a result, the three siblings 'all increased the size of their inheritance from Phyllis Pressman because they helped the Estate avoid the New York estate taxes that it was obligated to pay,' the suit claims.
7 Fred Pressman transformed Barneys into a high fashion destination for European designers.As proof of Phyllis's New York residency from 2018 on, the complaint alleges that she had her prescriptions filled at a local Southampton pharmacy, regularly used the landline at her oceanfront home, and employed two aides at the house.
Bob Pressman declined to comment on the complaint, as did his sisters Elizabeth and Nancy. Gene Pressman did not respond to a calls and emails requesting comment.
The siblings were notified about the lawsuit within the past couple of weeks, Bob Pressman's attorney Randall Fox told The Post.
If successful, it would be among the top five such cases brought in New York.
7 Barneys was founded by Barney Pressman in 1923.
The New York Post
The Empire state has recovered $674 million from deadbeat filers since 2010 when it established the Taxpayer Protection Bureau, of which Fox was the founding bureau chief.
The largest individual settlement under the False Claims Act was for $105 million, which was paid in 2021 by Swedish hedge fund manager Thomas Sandell. He allegedly set up a shell office in Boca Raton, Fla. to avoid paying taxes on his NYC business, according to the New York Attorney General's office. Sandell did not admit wrongdoing.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
6 minutes ago
- The Hill
Trump's plan for White House ballroom sparks outrage from his critics
President Trump's plans to add a massive $200 million ballroom to the White House is angering critics, who see him moving forward with the long-sought project as part of his desire to leave a lasting mark not only on the office of the presidency but the first house as well. The construction of the ballroom, the cost of which the White House says will be covered by Trump and other donors, will begin in September. Trump is also paving the White House Rose Garden (though the rose bushes will be saved), which the White House says is necessary so people can walk more easily for events held in the space. And he's added his personal gold touch to the Oval Office. Trump says he sees the ballroom as a way to add to his legacy. And while detractors say his decorative and more substantial changes are out of touch and ostentatious, he says they are necessary. 'I always said I was going to do something about the ballroom because they should have one,' he told reporters Thursday. 'So we'll be leaving it, it will be a great legacy project. And, I think it will be special.' When asked if any government funds will be used to construct the 90,000 square foot facility, Trump replied, 'no government dollars, no.' The White House said the sprawling event space will be built adjacent to the White House where the East Wing sits. The goal is to complete construction before the end of Trump's term in January 2029. Trump's vision is for a space where he and future presidents can host state dinners, large gatherings with business leaders and other ritzy parties or functions. 'We've been planning it for a long time,' Trump said. 'They've wanted a ballroom at the White House for more than 150 years. There's never been a president that was good at ballrooms. I'm really good.' Democrats and regular Trump critics offered a sharp pushback on his plans. 'This is what DOGE was all about, folks,' Senate Minority Leader Chuck Schumer (D-N.Y.) said in a video posted to social media hours after the White House announcement, referring to the president's Department of Government Efficiency. 'Cutting things from you, and giving it not to some place that needed it, giving it to the big shots who run the show, Donald Trump at the top of the list.' Others suggested Trump and his White House were planting an intentional distraction. 'You gotta hand it to MAGAs, for about a week they really did have everyone convinced they cared about kids and The Epstein Files,' journalist and pundit Seth Abramson wrote on social platform X. 'On to more important things! Did you hear Trump is building a $200M ballroom at the White House? Wowee!' The White House pushed back on those criticisms in a Friday statement to The Hill, saying 'as President Trump has said, for over 150 years, many presidents, administrations, and staff have all wanted a ballroom, and now we have a president who will accomplish building it.' 'President Trump is the best builder and developer in the entire world and the American people can rest well knowing that this project is in his hands,' a West Wing spokesperson said. 'Many future presidents and American citizens will enjoy it for generations to come.' The president, a longtime real estate mogul who is known for a hands-on approach in the design and construction of his resorts, golf courses and skyscraper office buildings, has long lamented the lack of sufficient event space at the White House. 'When it rains it's a disaster, and the tent's 100 yards, that's more than a football field away from the main entrance,' Trump said as part of his remarks to the press about the project. 'And people are shlopping down to the tent; it's not a pretty sight. The women with their lovely evening gowns, their hair all done, and they're a mess by the time they get [there].' There is longstanding precedent for presidents and first ladies putting their spin on the White House and its grounds. President Harry Truman oversaw a massive renovation from 1948 to 1952 that required he and his wife to move into the Blair House at the time and saw the White House completely gutted. Former first lady Jackie Kennedy, however, championed the historic preservation of the home and advocated that extreme renovations require oversight from the Committee for the Preservation of the White House. 'Every president and first family does make a mark on the White House — they already are a part of history and that snapshot in time,' said Anita McBride, former chief of staff to then-first lady Laura Bush. 'Since the cornerstone was laid, there have been additions, there have been changes that, at the time those happened, raised concerns.' The White House Historical Association welcomed Trump's planned ballroom. 'The history of the White House has evolved over 233 years since the cornerstone was laid in 1792. The South Portico, the North Portico, the East Wing, the West Wing, and the Truman Balcony all raised concerns at the time — but today, we can't imagine the White House without these iconic elements,' Stewart D. McLaurin, president of the association, told The Hill. He added, 'Since our founding by First Lady Jacqueline Kennedy in 1961, we have supported and partnered with every president and first lady caring for and adding to the White House and its Collection. We work to preserve the history of this remarkable museum, home, and office for generations to come.' Some agree with the president that a bigger events space at the White House is long overdue. 'I can understand why someone who thinks on a grand scale, as obviously President Trump does, would want this ballroom added,' said Barbara Perry, a presidential historian and co-chair of the Presidential Oral History Program at the University of Virginia's Miller Center. 'That being said, the optics for people who disagree with this president, it will probably have an impact on how they view this.' McBride agreed that the tents on the lawn, which have been constructed during more recent administrations, are not ideal. 'That doesn't come without challenges, putting up staging, putting up a covered structure, getting people to the actual location; dealing with inclement weather. And you're not really having your event in the White House,' she said. 'So you can see where that makes sense.' There are lingering questions about what the new ballroom location will mean for the staffers who work in the East Wing, which is where first lady's staff works. The East Wing is also where tours of the White House for the public are conducted. 'Betty Ford always called the East Wing the 'heart' of the White House,' McBride said. 'All the business and policy gets done in the West Wing, that's critically important. But the heart of the White House is the East Wing. And so what, what will be the new East Wing?' Others see the construction of an opulent addition to the president's residence as a matter of bad timing and poor optics given sluggish jobs reports and fears about how global tariffs might hurt the U.S. economy. 'This isn't something that's going to make or break another election, but it does add another page to the catalog of hypocrisy that these people read from when they want to lecture Americans about fiscal responsibility,' said Antjuan Seawright, a Democratic political strategist. 'It's a visible middle finger to working class Americans, many of whom voted for him.'
New York Post
6 minutes ago
- New York Post
NYPD bosses got federal $$ for helicopter training they didn't need
The feds are looking into overtime abuse at the NYPD's elite Aviation unit under ousted NYPD Chief Winston Faison — who allegedly approved payments for rescue training for cop cronies who had nothing to do with rescues, The Post has learned. Lt. Lakeisha Smith, Lt. Winston Wright and Detective Tanesha Facey, Faison's driver, made up to 20 overtime hours per month — funded by a federal maritime safety training grant administered by FEMA, police sources said. 'They're literally doing nothing for the training whatsoever except putting in overtime slips,' one source said. 6 Former NYPD Aviation Commander Winston Faison's unit is being eyed for misuse of federal overtime dollars, police sources said. Winston Faison/ Facebook Smith's total pay for 2024 rose to $185,405 from $122,892 the prior year — or more than $60,000 thanks to overtime and other extras, like differentials for working later shifts or holidays. Facey's pay went from $115,923 to $159,249. Lt. Winston Wright's haul increased to $177,654 in 2024 compared to $135,595 the year before, according to state payroll data. None of the three are licensed pilots or mechanics or have anything to do with the training maneuvers, three sources said. The three officers didn't return messages. 6 Lt. Winston Wright's federal overtime pay is being eyed by investigators, sources and officials said. Faison was transferred by the NYPD last week as the Federal Aviation Administration investigated safety issues at the unit, reported exclusively by The Post. He has since retired, NYPD documents show. Smith filed her retirement papers Wednesday, sources said. The FAA went to the unit's headquarters earlier this month and demanded to see records about safety issues, including a hard landing and tens of thousands of dollars worth of damage to an aircraft during a hovering exercise, The Post revealed last week. 'This matter is under investigation,' an NYPD spokesman said in response to an email asking about the safety and overtime issues. 6 Det. Tanesha Facey also got the federal overtime hours for air sea rescue training, police sources said. 6 Lt. Lakeisha Smith was one of the Aviation members who got federal overtime money meant for air sea rescue training, according to police sources. Obtained by the New York Post Faison, has only a few hundred hours of flying time under his belt in comparison to other unit pilots with thousands of hours, also took at least one off-the-books trip with the unit's Bell 429 helicopter that was not properly recorded in the aircraft's log book, the sources said. Faison took the pricey helicopter to Farmingdale Airport in Long Island on June 27 — where he keeps his personal plane and runs a non-profit called Aviate4Us to encourage inner city youth to become pilots, records show. The group has had about $20,000 in contracts with the city Department of Youth and Community Development, city records show. Facey was with Faison on the trip but he failed to include her when he filled out the helicopter's log book, which is supposed to show who was on the flight and where it went, records obtained by The Post show. 6 The FAA is also looking at safety issues at the unit, including damage done to a helicopter during a hovering training exercise with Faison as pilot, police sources said. Obtained by the New York Post 'When Faison put it over on the radio, he said 'Faison airborne,'' a law enforcement source said. But the supervisor on duty knew he wasn't alone and incuded Facey in the master log book entry he made, according to records. Faison also didn't get permission from headquarters at One Police Plaza to leave the city and fly to the airport, which is required, the sources said. He also didn't record that he landed in Farmingdale and instead noted only a stop in Islip where the NYPD's keeps its spy plane. 6 Chief Winston Faison approved the federal overtime payments to his cronies, police sources said. Winston Faison/ Facebook The FBI is looking at the misuse of the overtime grant money as part of a larger investigation that began after The Post exclusively reported bombshell allegations that disgraced NYPD Chief Jeffrey Maddrey paid Lt. Quathisha Epps overtime for sexual favors, a law enforcement source with knowledge of the investigation said. 'It's a massive investigation,' a second law enforcement source said.
UPI
7 minutes ago
- UPI
India responds to U.S. penalty over Russia oil
Aug. 2 (UPI) -- Indian officials confirmed Saturday the country is not altering policy and will continue buying oil from Russia, despite threats of a financial "penalty" from U.S. President Donald Trump. India's government has not given any directive to the country's oil refiners to stop or reduce the amount of Russian crude oil, the New York Times reported, citing two senior Indian officials. Trump earlier this week said he would impose a financial "penalty" on the South Asian country if it did not cut back on its reliance on Russian oil. The sanction would be in addition to a 25% American tariff on Indian goods. The president did not elaborate on the extent of the additional financial "penalty." "Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country, " Trump said in a Truth Social post. "Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE." Trump on Friday said it was his understanding "that India is no longer going to be buying oil from Russia. That's what I heard. I don't know if that's right or not. That is a good step. We will see what happens." Indian officials told the New York Times the country has "not given any direction to oil companies" to change direction. Publicly, Indian officials said they are considering options without confirming or denying the Times report. "We have taken note of the sanctions, and we are looking into it," Ministry of External Affairs of India spokesman Shri Randhir Jaiswal said during a news conference Friday in New Delhi. "On the other question about proposed oil sale, I would say that I have no comments to offer in this particular matter. As far as sourcing our energy requirements is concerned, you are well aware of our broad approach, meaning our overall approach and stance. We take decisions based on the price at which oil is available in the international market and depending on the global situation at that time. As for the specifics of your particular question, I am not aware of it. I don't have details of these specifics." Jaiswal also attempted to avoid further escalating the situation. "I would also like to underline this particular point that this is a sensitive and complex case and therefore, I would urge all to be mindful that media reports based on speculation and misinformation are not helpful at all," he told reporters. "In so far as the reports claiming that there has been certain developments etc., such reports are incorrect. Please wait for an update from us, this is a sensitive matter, and we urge all sides to stay away from misinformation."
