Beleaguered hedge fund manager Alphonse “Buddy” Fletcher agreed to pay the Dakota co-op board more than $122,000, allowing his mother to continue residing in the historic Upper West Side co-op building.
Fletcher, who is married to former Reddit CEO Ellen Pao, used a trust to buy the Dakota apartment for his mother, Bettye Fletcher, in 2002. But after his hedge fund went belly-up in 2012, Fletcher was unable to pay for its upkeep. The Dakota sued Bettye in Housing Court in April, claiming it was owed $108,000. The case settled last month, with Fletcher agreeing to pay the building $122,588, the New York Post reported. Most of the money will go towards covering $103,000 in roof repairs. Bettye has maintained her right to stay in the apartment, according to the paper.
Her son, however, has been forced to vacate his home in the building. In February, a state judge ordered the Dakota’s board to change the locks and remove his belongings so the unit could be sold to pay his creditors.
Brown Harris Stevens has the listing for the seven-room apartment, which is currently asking $12 million. Most of the proceeds of the sale will go to investors who last year won a $50 million judgment against Fletcher and his company, Fletcher Asset Management. They claimed they had been defrauded by the hedge funder. [NYP] — Miriam Hall