South Dakota Is Fast Becoming A Mini-Switzerland For The World’s Rich
South Dakota Is Fast Becoming A Mini-Switzerland For The World’s Rich
Billionaire Divorce Uncovers Secretive World Of Trusts In South Dakota
May 6 2020 Robert Frank@ROBTFRANK
Louise Connelly@LOUISEBCONNELLY and Scott Zamost@SCOTTZAMOST
KEY POINTS
In a lawsuit, Marie Bosarge claims that her estranged husband, Texas billionaire Ed Bosarge, created trusts “to hide income and property and to hold what would otherwise have been personal income and assets.”
More than just another billionaire divorce spat, the case offers a rare window into the highly secretive world of asset trusts in South Dakota.
South Dakota is fast becoming a mini-Switzerland for the world’s rich trying to shield their assets.
Billionaire divorce shines light on South Dakota trusts
During their more than 30 years of marriage, Texas billionaire Ed and Marie Bosarge accumulated an unusual collection of treasures.
They owned 12 homes, including five properties in Maine and a private island in the Bahamas. They had a 180-foot sailing yacht with its own grand piano. They bought a $5 million Egyptian mummy. Marie bought some of Marilyn Monroe’s personal effects, including her furniture, dresses and bras.
“It was over the top,” Marie said of their lifestyle.
Now, instead of living the high life, Marie Bosarge fears going under. When Ed filed for divorce in 2017, Marie discovered that almost all of the couple’s property — from the homes and island to her jewelry and even some of their tableware — had been put into a special trust that shielded the assets from any claims.
Rather than getting half of a fortune she estimated to be worth more than $2 billion, she may wind up with little or nothing after paying her legal bills.
Marie Bosarge on her 180-foot sailing yacht 'Marie.' Marie Bosarge on her namesake 180-foot sailing yacht.
Source: Marie Bosarge
In a lawsuit filed in 2018, Marie claims that the trusts “were created and used by Ed to hide income and property and to hold what would otherwise have been personal income and assets.” She claims the purpose of the trusts and the transfer of assets between the trusts was “to cut Marie out of her rightful share of the community estate.”
Attorneys for Ed Bosarge — who founded high-speed trading firm Quantlab — declined to comment on the case, citing confidentiality rules. Marie’s attorney also declined comment. But in court papers, Ed’s attorneys have claimed that the assets are owned and controlled by the trust, not by him, and are therefore not marital property. They say the total value of the couple’s marital property, which would be subject to division, is about $12 million.
Marie said that since her legal bills are already well into the millions, “I could wind up with nothing.”
More than just another billionaire divorce spat, the Bosarge case offers a rare window into the highly secretive world of asset trusts in South Dakota, a state whose protective trust laws have made it a haven for billionaires and wealthy families around the world.
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