He won’t surrender the ship.
The owner of an iconic presidential yacht is suing his lenders claiming they’re trying to commandeer the ship in a “fire sale,” according to documents filed in New York Supreme Court.
The lenders “developed and then instituted a dastardly plan to wrest control of the Sequoia from,” its owner, the complaint states.
Sequoia owner Gary Silversmith, of Washington D.C., was burdened by the costs of maintaining the 104-foot wooden yacht. Built in 1925 it served presidents Hoover to Carter, until the later sold it at auction.
Silversmith received a $5 million loan in July 2003 from D.C.-based company called FE Partners, which the complaint says is owned by a powerful business family from the Indian state of Goa.
But FE Partners only paid Silversmith half the loan and then served him with fabricated default notices, the filing alleges. The notices were issued for infractions like bringing prostitutes abroad the vessel, according to the complaint, which calls those charges “outright false.”
“The plan was to strategically loan only half of what it contracted to loan,” forcing Silversmith to default on his payments and surrender the ship for half its stated $13 million value, court papers say.
The yacht, a National Historic Landmark, is rented out to private groups and used for charities including an organization that helps wounded vets.
Silversmith wants the court to force the lenders to pay the balance on the loan and prevent them from buying the historic ship.
The parties are due in court on Jan. 17.