Bennett S. LeBow

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Bennett S. LeBow is an American businessman and philanthropist. He is the founder and chairman of the board of Vector Group.<ref>Vector Group Limited: "Board of Directors" Template:Webarchive retrieved October 25, 2015</ref> After LeBow acquired the cigarette manufacturer Liggett Group in 1986, the company became involved in anti-tobacco lawsuits culminating in the 1998 Tobacco Master Settlement Agreement.

Early life and educationEdit

LeBow's father, Martin, was a life insurance salesman and his mother, Suara (née Weiss), was a teacher.<ref>Summit Towers Condo Association Bulletin Template:Webarchive March 1992</ref><ref name=NYTHighStakes>The New York Times: "An Entrepreneur's High-Stakes Move" By Glenn Collins Template:Webarchive March 21, 1997</ref><ref name=PhillyLongtime>Philadelphia Inquirer: "Bennett S. LeBow, a longtime businessman, with a great love for Drexel, his alma mater" By Melissa Dribben Template:Webarchive November 16, 2010</ref> He graduated from West Philadelphia High School,<ref name=PhillyLongtime /> and in 1960 earned a degree in electrical engineering from Drexel University.<ref name=PhillyLongtime /> LeBow then went on to graduate school at Princeton University. Before completing his degree, LeBow left Princeton and joined the army where he installed early data systems at the Pentagon.<ref name=PhillyLongtime />

CareerEdit

LeBow's first foray into business occurred in the 1960s, when he started a computer company to continue his Pentagon project. LeBow sold the business in 1971, and became a full-time investor.<ref name="PhillyLongtime" /> In 1980, he founded the investment holding company Brooke Group Ltd.<ref name="Britannica">Britannica Online: "Bennett S. LeBow" Template:Webarchive retrieved October 25, 2015</ref> LeBow went on to purchase many companies including Western Union, Information Displays, MAI Basic Four, Liggett Group, Brigham's Ice Cream,<ref name="PhillyLongtime" /><ref name="NYTTurnaroundArtist">The New York Times: "Turnaround Artist: Bennett S. LeBow; Collecting Wall Street's Wallflowers" By Barnaby J. Feder Template:Webarchive September 25, 1988</ref> and SkyBox International.<ref>Los Angeles Times: "Other News" March 10, 1995</ref><ref>The New York Times: "Liggett to Change Its Focus With Shift From Cigarettes" by Anthony Ramirez Template:Webarchive June 22, 1990</ref> In 2000, Brooke Group Ltd. was renamed to Vector Group Ltd.<ref name="Britannica" />

In 1984, LeBow completed the sale of Information Displays, which subsequently went bankrupt. The buyer sued LeBow and his partners for fraud and misrepresentation.<ref>"Turnaround Artist: Bennett S. LeBow; Collecting Wall Street's Wallflowers", The New York Times, September 25, 1988</ref> In 1986, he purchased the fifth-largest cigarette manufacturer in the United States, the Liggett Group, for $140 million.<ref name="Britannica" /><ref name="NYTNewleaf">"Lebow Turns Over a New Leaf". BusinessWeek. May 6, 2001. "LeBow, who is Jewish, even brought in a rabbi to say a prayer for the dead deal".</ref> In 1987, Liggett bought a majority stake in Western Union, which had a negative net worth of $200 million. The company, then renamed New Valley LLC, eventually filed for bankruptcy but was able to pay its bondholders in full via asset sales. Liggett later sold its remaining interest in Western Union Financial Services Inc for $1.2 billion, earning it a $300 million profit.<ref>Baltimore Sun: 'Bennett LeBow, flashy financier, 'likes to be in control' RTC Setting the agenda for tobacco industry" March 24, 1996</ref> In 1994, LeBow was sued by his shareholders, who claimed he had taken millions of dollars in improper loans; LeBow settled out of court."<ref name=":1">Template:Cite magazine</ref> In 1995, he teamed up with corporate raider Carl Icahn to make a bid for RJR Nabisco.<ref>Border's New Chairman: Bad For Business? Sarah Weinman, Daily Finance, September 23, 2010.</ref> The bid was rejected by shareholders, who were skeptical due to LeBow's "dubious reputation as a manager."<ref name=":1" />

In May 2010, after a $25 million investment, he became a member of the board of directors at Borders and was immediately elected chairman of the board, replacing Mick McGuire, who resigned.<ref>Ann Arbor News: "Tobacco executive, investor becomes chairman of Borders Group Inc. after $25 million deal" By Nathan Bomey Template:Webarchive May 21, 2010</ref> In June 2010, LeBow became CEO of Borders Group Inc.<ref>Ann Arbor News: "Tobacco executive Bennett LeBow takes control of Borders Group" By Nathan Bomey Template:Webarchive June 3, 2010</ref> In February 2011, Borders declared bankruptcy.<ref>The Wall Street Journal: "Bookseller Borders Begins a New Chapter...11" By Joseph Checkler and Jeffrey A. Trachtenberg Template:Webarchive February 17, 2011</ref><ref>The Wall Street Journal: "Borders Bankruptcy: Blow to Bill Ackman, Bennett LeBow" by Shira Ovide Template:Webarchive February 16, 2011</ref>

LeBow is chairman of the board of Vector Group, the holding company for Liggett Group, Vector Tobacco, New Valley LLC, and Douglas Elliman. He owns over 150,000 units of Vector stock, worth $7.5 million.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

Tobacco industry and litigationEdit

LeBow purchased the Liggett Group for $140 million in 1986.<ref name="Britannica" /><ref name="NYTNewleaf" /> In 1993, LeBow stated under sworn testimony that whether cigarettes cause cancer is irrelevant, since cigarettes are a legal product and people choose to use them.<ref>The New York Times: "On Cigarettes, Health, and Lawyers" By Michael Janofsky Template:Webarchive December 6, 1993 | citing the following deposition: Q. If I asked you, does smoking cause lung cancer... A. I don't know. Q. O.K., and you really don't care because you're selling a legal product? A. Correct.</ref> In 1996, while under his leadership, Liggett Group broke ranks with the rest of the US tobacco industry, including Philip Morris, Brown and Williamson, RJR Nabisco, Loews and Lorillard, when he announced that Liggett would settle the Medicaid tobacco suits brought by forty state attorneys general.<ref>Bloomberg: "Bennett Lebow: Cigarette (Industry) Break" Template:Webarchive May 10, 1998</ref>

Liggett had previously been accused of being illegally influenced by Philip Morris, which allegedly paid some of Liggett's legal bills in order to buy its cooperation in anti-tobacco lawsuits.<ref>"Tobacco Company Paid Competitors Legal Bills" Template:Webarchive, The New York Times, July 22, 1997.</ref> LeBow stated that the reason for the settlement was to obtain immunity for Liggett from future liabilities<ref name="NYTHighStakes" /> and to prevent a future bankruptcy.<ref name="PBS">Inside the Tobacco Deal: Bennet LeBow Profile Template:Webarchive PBS Frontline</ref> The settlement entailed that Liggett agree to pay $1 million in damages;<ref name="NYTNewleaf" /> publicly announce that smoking is addictive and causes cancer; turn over long-secret tobacco industry documents; disclose ingredients in its cigarettes; and testify against the industry. Liggett was the first cigarette company to voluntarily put the label "Nicotine is Addictive" on their product.<ref name="PBS" />

LeBow was honored with a proclamation by Florida governor Lawton Chiles for his "invaluable assistance" in helping the state achieve its $11.3 billion settlement with the tobacco industry.<ref>Business Wire: "Liggett's Bennett LeBow Honored by Florida Governor Lawton Chiles and Attorney General Robert Butterworth" Template:Webarchive October 21, 1997</ref>

According to court documents, Liggett, while under LeBow's leadership, "engage[d] in marketing tactics that appeal to youths, such as couponing, sampling, and 'buy one get one free' offers for its cigarettes, and advertise[d] in magazines with substantial youth readership."<ref>Deposition of Steven Shipe, United States v. Philip Morris, May 21, 2002, 86:22-87:13.</ref>

Through Vector Tobacco Inc., LeBow developed the nicotine-free cigarette Quest, a cigarette designed to aid in smoking cessation.<ref>Davis, Joshua. "Come to LeBow Country Template:Webarchive" Wired, February 2003</ref>

In 2005, LeBow resigned from the Dana–Farber Cancer Institute Board of Trustees shortly after his appointment over discussions about the propriety of associating with the owner of a company which sells products that are known to cause cancer.<ref>"Er, Never Mind" Template:Webarchive, The New York Times, March 13, 2005.</ref>

Philanthropy and political activityEdit

LeBow is a large supporter of his alma mater, Drexel University. In 1998, Drexel's College of Business and Administration was named the Bennett S. LeBow College of Business in his honor after LeBow made a $10 million donation to the university.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> LeBow also endowed the Bennett S. LeBow Engineering Center, a facility that houses Drexel's College of Engineering. In November 2010, LeBow contributed $45 million for the construction of a new facility for the LeBow College of Business, the 12th largest gift to any US business school and the biggest ever to Drexel University.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>Drexel University Alumni Magazine: "A new gift from Bennett S. LeBow '60, Hon. '98 - Drexel's leading alumni benefactor adds to his legacy" Template:Webarchive Fall 2004</ref> The new facility, which was finished in 2013, was named Gerri C. LeBow Hall in honor of LeBow's late wife Geraldine.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> In 2011, LeBow was named the nation's 23rd largest charitable donor by The Chronicle of Philanthropy for donating more than $49 million to charitable causes.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

From 1993 to 1996, LeBow and his wife Geraldine donated more than $65,000 to Democratic candidates.<ref name=":2" /> In 1995, LeBow invited Vadim Rabinovich to a Clinton–Gore fundraiser in Miami, though this did not become public knowledge until 1997.<ref name=":3" /><ref name=":4" /><ref name=":2" /> Rabinovich was alleged to have ties to Russian organized crime,<ref name=":2" /> with American journalist Robert I. Friedman describing Rabinovich as a "Ukrainian mob boss".<ref name=":3">Template:Cite book</ref> A spokesman for LeBow said that, at the time of the fundraiser, LeBow was unaware of Rabinovich's alleged ties to organized crime.<ref name=":2">Template:Cite news</ref> Rabinovich said he did not donate money to the fundraiser.<ref name=":4">Template:Cite news</ref> According to a spokesman for LeBow in 1997, LeBow's Brooke Group and Rabinovich were participating in the development of a business center and luxury hotel in Kyiv.<ref>The New York Times: "A Cosmetics Heir's Joint Venture Is Tainted by Ukrainian's Past" by Douglas Frantz and Raymond Bonner Template:Webarchive April 5, 1997</ref> In 2009, LeBow made a $10,000 campaign contribution to Manhattan District Attorney candidate Leslie Crocker Snyder, whose law firm – Kasowitz, Benson, Torres & Friedman – had represented the Liggett Group in smoking and health litigation since 1996.<ref>Leslie Crocker Snyder Accepts Tobacco Executive's Money, Daily News, August 25, 2009.</ref> According to CNN, LeBow was a "substantial donor" to Donald Trump's 2016 presidential campaign.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

Personal lifeEdit

LeBow is Jewish.<ref name="NYTNewleaf" /> LeBow was first married to Geraldine Cosher<ref name=CosherDrexelObit>Drexel University news: "College Mourns Death of Gerri LeBow" Template:Webarchive August 3, 2011</ref> whom he met while they were college students (he was at Drexel and she attended Temple University).<ref name=":0">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> They had two daughters.<ref name=PhillyLongtime /><ref name=NYTTurnaroundArtist /> Geraldine died in 2011<ref name=CosherDrexelObit /> after 52 years of marriage.<ref name=":0" /> Bennett subsequently married Jacqueline Finkelstein of JSF Capital.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

In 1989, Brooke Yachts International Ltd. (which LeBow bought for $4Template:Nbspmillion when the shipyard encountered financial issues) finished Lebow's $21 million yacht. The yacht, which was Template:Convert long, was considered one of the ten largest private yachts in 1993.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

LeBow owned property on Fisher Island in Florida.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> The penthouse, which was bought by Geraldine for $4.25Template:Nbspmillion in 1995, was sold in 2020 for $15Template:Nbspmillion.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> In 2016, LeBow bought an Template:Convert, five-bedroom unit on the 64th floor of 432 Park Avenue in New York City for $44.8Template:Nbspmillion.<ref>Template:Cite news</ref>

ReferencesEdit

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External linksEdit

Drexel University's LeBow College of Business