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Ynon Kreiz: The CEO Mattel (and Hollywood) needed in the darkest hour

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Ynon Kreiz: The CEO Mattel (and Hollywood) needed in the darkest hour

The day “Barbie” hit theaters in July, Mattel Chief Executive Ynon Kreiz was in New York City visiting his oldest daughter and the pair decided to walk to a nearby theater for some real-time market research. Kreiz, who had been the driving force behind the decision to bring Mattel’s iconic doll to life on the big screen, loved the film, but with its fate now in the hands of the ticket-buying public, his opinion didn’t much matter. He wanted to see how people were reacting.

His answer came quickly. As he and his daughter approached, they found themselves walking among droves of people dressed in Barbie’s signature pink. And when they poked their heads into each of the five packed theaters showing the movie, they were met with roars of laughter. Some viewers were crying.

Discover the changemakers who are shaping every cultural corner of Los Angeles. This week we bring you The Disruptors. They include Mattel’s miracle maker, a modern Babe Ruth, a vendor avenger and more. All are agitators looking to rewrite the rules of influence and governance. Come back each Sunday for another installment.

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“Feeling that reaction — that audience reaction — was very telling,” he said, “and very exciting.”

What happened after opening night is now the stuff of Hollywood legend. The Greta Gerwig-directed film became an instant hit at the box office, raking in more than $1.4 billion, and kicked off a cultural phenomenon. Less well known, though, is the role the film has played in the story of Mattel’s revival. It’s a story that was written in large part by Kreiz, 59, who took the reins when the El Segundo-based company was struggling and who over his roughly six years at the helm has orchestrated a remarkable turnaround, making Mattel into one of the biggest corporate success stories of recent years.

At the heart of his plan was a move that seemed obvious to him, but which previous leaders failed to execute: Mattel needed to make a splash in the film business. To Kreiz, Mattel’s intellectual property was a gold mine. The company had a roster of instantly recognizable characters beloved by children and adults alike that he was confident could become enormously lucrative if they were exploited wisely.

For skeptics, that remains a big if. Mattel, in need of a big win in a dark hour, understandably chose to come out of the gate with its most reliable brand. The question now is whether Barbie’s success earned the toy maker’s film division enough industry respect, and breathing room, for the studio to re-create last summer’s magic with other, less potent brands, such as Hot Wheels, Polly Pocket and the card game Uno. Complicating the already uncertain road ahead, earlier this year an activist investor began agitating for the company to jettison some of its key brands to boost its middling stock price.

“This is not a novel concept where you take a strong brand in one vertical and import it to others,” Kreiz said at a conference last fall. “At Mattel, we haven’t done it. … You have ‘Fast and Furious,’ 10, and Hot Wheels, zero.” He believes with certainty that there’s an audience for such a film. After all, Mattel already sells nearly 800 million of the die-cast cars a year.

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Mattel’s consumers, Ynon Kreiz said, are more than just consumers — they are fans.

Kreiz, who gets up around 4:30 or 5 a.m. to kiteboard or get some other workout in before work, brings a similar intensity to the office. He stays impressively on message when talking about Mattel, with seemingly effortless sound bites ready at hand, barely breaking eye contact. Watch clips of his public speaking appearances and it becomes clear he repeats talking points, often word for word, his calm, personable demeanor disguising the discipline with which he approaches the CEO role.

When asked about the key to Mattel’s transformation under his leadership, Kreiz, unhurried and with animated hands, launched into a theory that he has often recounted in interviews. Mattel’s consumers, he said, are more than just consumers — they are fans.

“And when you have a lot of fans, you have an audience,” he said.

Kreiz became Mattel’s fourth chief executive in four years when he took charge, inheriting a company that needed a lifeline. He brought with him extensive experience in the entertainment industry, having made career stops at Fox Kids Europe, Endemol Group — the production company known for its unscripted programs, including “Deal or No Deal” and “Big Brother” — and Maker Studios, a short-form video studio that Disney acquired in 2014.

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The once dominant toy maker had lost its way: Some of Mattel’s biggest brands were struggling, and toy sales had been steadily declining since 2013. Its market cap had dipped more than $5 billion below that of rival Hasbro. Its second-largest customer, Toys R Us, filed for bankruptcy protection in 2017. That same year, Mattel reported a fourth-quarter loss of $281.3 million.

Kreiz needed to stop the bleeding. He restructured the company’s supply chain, reduced the number of items it produces by 35%, and cut five factories from its manufacturing lineup. The company slashed more than 2,200 jobs, 22% of its global nonmanufacturing workforce. Mattel was starting to move away from manufacturing and focus on developing its intellectual property, Kreiz told reporters. Between 2018 and 2021, Mattel said it achieved cost savings of more than a billion dollars.

Ynon Kreiz

The Mattel of today looks much different from the company five years ago. The toy maker is now outpacing Hasbro and dominating in fast-growing toy categories, such as fashion dolls, which are more popular than action figures at the moment, said Linda Bolton Weiser, a managing director and senior research analyst at D.A. Davidson who tracks consumer goods.

Kreiz’s work at Mattel hasn’t gone unnoticed. With Barbie’s wild success, he and the turnaround he’d orchestrated became the talk of corporate Hollywood. Matt Belloni, an industry prognosticator, recently anointed Kreiz “the Hollywood hero of the year” and said he was an obvious choice to replace Bob Iger at Disney.

When the first draft of the “Barbie” script landed in Kreiz’s inbox, he read it twice back to back. The text felt unconventional and special, and he loved it right away. Kreiz isn’t shy with his praise of Gerwig, often calling her a “creative genius.”

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Robbie Brenner, the head of Mattel Films, felt the same.

Kreiz ‘is going to be able to go out there and get the best partners in Hollywood to do these future projects.’

— Linda Bolton Weiser, a managing director and senior research analyst at D.A. Davidson

Brenner, a producer who was nominated for an Academy Award for “Dallas Buyers Club,” was one of Kreiz’s first hires after starting as CEO. The two met at the Polo Lounge at the Beverly Hills Hotel after an agent suggested they connect.

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“I mean, we hired Greta Gerwig for a reason, and you don’t hire Greta Gerwig and then try to cut her legs off,” Brenner added. “I think that we wanted her to fly and to tell an authentic, amazing personal story that was unique and different and bold, and surprise people.”

The film was a hit beyond expectations, both financially and in the cultural consciousness. The “Barbenheimer” opening weekend brought crowds of people back into movie theaters in numbers unheard of since the pandemic. More than a dozen fashion brands launched “Barbie” collaborations, including Zara and Vans. Burger King in Brazil sold a hamburger doused in pink sauce and French fries called “Ken’s potatoes.” “Barbiecore” was everywhere.

The movie became the highest-grossing film of 2023, surpassing $1 billion at the global box office just 17 days after its release. At a conference in September, Anthony DiSilvestro, Mattel’s chief financial officer, said that the company expected $125 million in revenue related to the “Barbie” movie — including toy sales — with a profit margin of about 60%.

Mattel declined to comment on how much its cut of the box office revenue is, but industry analysts have said the company’s take-home pay from ticket sales is in the tens of millions. In addition, insiders with knowledge of the financial arrangement said that Mattel also will receive payments for owning the rights to Barbie’s intellectual property in addition to profits as a producer of the movie, the New York Times reported.

The toy aisle also felt the effects of “Barbie” mania. Mattel’s third-quarter performance beat estimates, with sales of Barbie dolls jumping 16%. The doll category as a whole was up 27% from the previous year.

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The longer-term dividends the film will pay are harder to quantify but crucial to Mattel’s future.

“Barbie” has laid the groundwork for the future of Mattel’s entertainment sector, Bolton Weiser said. “[Kreiz] is going to be able to go out there and get the best partners in Hollywood to do these future projects. And it’s all good, you know? Very low risk for Mattel. They don’t take any big capital risks doing these entertainment events. So it all makes sense.”

Mattel Films now has 16 projects in development: A J.J. Abrams-produced Hot Wheels movie, Lily Collins and Lena Dunham signed on for Polly Pocket, and Vin Diesel as a partner for Rock ’Em Sock ’Em Robots, among others.

As the scale of “Barbie’s” success became clear, a question began to circulate: Can Mattel repeat this success story? Hollywood is a fickle beast, and the company’s use of its most resonant brand for its first act was a gamble.

“It’s difficult to imagine any other movie based on a toy ever reaching ‘Barbie’s’ heights,” Eliana Dockterman, who reviews TV and films for Time magazine, wrote in August. “Barbie is an icon. She has name recognition across the world equal to Mickey Mouse and Coca-Cola. And, sure, Hot Wheels may be popular, but won’t a Hot Wheels movie just be a racing movie, even if J.J. Abrams is at the helm as executive producer?”

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Still, Dockterman admitted that she’s curious about Mattel’s next entertainment ventures, namely “Daniel Kaluuya’s involvement with what sounds like a very meta Barney movie (as in, yes, the big purple dinosaur); whether Lena Dunham can find a quirky take on Polly Pocket; and if a Magic 8 Ball horror movie can actually prove to be scary.”

Kreiz quickly brushed off concerns of “Barbie” as a one-hit wonder. “We’re not saying that every movie will be as successful as ‘Barbie,’” he said, “but we absolutely look to have the same approach in terms of attracting and collaborating with the talent, supporting and backing the talent,” and enticing Mattel’s built-in fan base to the theater.

“The idea is to create something unique in every movie,” he added. “Every project has a unique purpose, and will have a unique voice.”

While “Barbie” captured fans’ collective imagination last year, Mattel’s future is not tied exclusively to films. Company execs like to joke that the nearly 800 million Hot Wheels sold annually make Mattel the biggest auto manufacturer in the world.

In September, the company unveiled a two-story L.A. flagship store for American Girl at the Westfield Century City Mall. On opening day, a line of toddlers to tweens, with dolls clutched to their chests and their parents in tow, lined up in front of the store’s doors. Inside, the cafe serves doll-sized pancakes on tiered serving trays alongside plates of human-sized ones. A hair and nail salon styles dolls and their humans.

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But Kreiz’s big bet on entertainment is never far off. Mattel announced in December plans to give the American Girl brand its own Hollywood treatment with a live-action movie directed by Lindsey Anderson Beer. Some of the American Girls have already starred in movies, mostly direct-to-DVD and made-for-TV films, but the company is aiming to go bigger.

Nostalgia, tapped effectively, can be a powerful force at the box office. There is a reason why studios keep reaching for reboots and reimaginings of beloved franchises — fans want to reconnect with characters with whom they have a history. But it can be a tricky business trying to nail the sweet spot of familiarity and freshness.

Kreiz thinks the company is up to the task.

“Play is our language,” he said. “This is how we start the journey. This is how we speak to our fans.”

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Waymo reports teen riders for bad behavior and delivers them to the police

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Waymo reports teen riders for bad behavior and delivers them to the police

Robotaxis could be turning into robocops.

A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.

According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.

“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”

Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.

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“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “

A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.

Waymo did not immediately respond to a request for comment.

Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.

The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.

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The company said it does not use facial recognition or other biometric identification technologies to identify individuals.

“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.

The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”

“At least they got a designated driver?!” one user commented.

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Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination

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Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination

At the Supreme Court, the unfounded fear of boys masquerading as girls in youth sports rolled the clock back on gender equality.

On the surface, the Supreme Court’s June 30 opinion upholding state laws barring transgender girls from women’s and girl’s sports teams looks like a victory for women’s rights.

The 6-3 opinion by Justice Brett M. Kavanaugh certainly presents itself that way. “Females and males have inherent physical differences relevant to athletic performance,” Kavanaugh wrote. “Therefore, in contact sports, forcing female athletes to compete against males can create significant safety risks.” He also asserted that “forcing female athletes to compete against males can undermine competitive fairness.”

The ruling applied to prohibitions enacted in Idaho and West Virginia against “biological” males’ participation on women’s teams in public schools. Federal judges in both states overturned the bans. The Supreme Court majority restored them. The ruling essentially upholds similar bans enacted in 25 other states.

There was no record of any transgender person participating in school sports in the State, let alone any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.

— Justice Sonia Sotomayor, demolishing the Supreme Court’s argument in favor of banning transgender girls from girl’s sports

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Kavanaugh, like Donald Trump and others in the anti-transgender camp, maintained that one’s gender is an immutable fact of life, established even before birth.

Anything else, Trump stated in an executive order he issued on inauguration day 2025, could only be the product of “gender ideology extremism.” The U.S., his order stated, recognizes “two sexes, male and female. These sexes are not changeable and are grounded in fundamental and incontrovertible reality.” That’s a “biological truth,” he declared.

In his own version of this overconfident and factually insupportable conclusion, Kavanaugh wrote: “As all agree, females and males have inherent physical differences relevant to athletic performance.”

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Science recognizes that some people are “born with sex traits that don’t fit into typical male or female patterns,” to cite a discussion on the Cleveland Clinic web page on the topic “intersex.” The condition “may involve chromosomes, hormones, reproductive organs or genitals.”

From a psychological standpoint, medical science recognizes “gender dysphoria” as a real condition often requiring counseling and medical intervention such as the use of puberty blockers and hormones to stave off the development of secondary sex characteristics until the condition can be resolved.

No one disputes that there are physical differences between the sexes. Few would dispute that on average or even at the median, males may be bigger and more powerful than females, or that in certain contact sports the difference may be telling and on occasion dangerous.

But that’s not the same as asserting that the physical differences between males and females invariably mean that men will invariably prevail over women in all competitions or that their participation will endanger women.

The International Olympic Committee — in a policy statement Kavanaugh cited incompletely — says that in “most running and swimming events,” males have a 10% to 12% advantage over women. That’s a range that would accommodate the full spectrum of outcomes — transgender females win, cisfemales win, they tie. (The “cis” prefix denotes those living consistent with their birth gender.)

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West Virginia and Idaho addressed this ambiguity by banning transgender women from all girls’ teams. So under their rules transgender girls can’t play football or soccer with cisgirls. But what’s the argument in favor of banning them from the 100-yard dash, or cross-country track, or diving, or archery?

But something else is going on here. The Supreme Court’s ruling was almost preordained, given the years-long campaign by conservatives to demonize transgender individuals as if they’re members of an alien species.

It will be recalled that during his presidential campaign, Trump spun a despicable fantasy in which children were kidnapped in school and secretly subjected to sex-change operations.

Trump’s executive order wiped out policies aimed at protecting transgender adults from discrimination. He moved to outlaw gender-affirming medical therapies for anyone under 19 by cutting off federal funding for healthcare institutions that provide such care.

He banned transgender individuals from serving in the military and ordered federal prison officials to move transgender inmates into the general populations consistent with their birth genders, which exposes them to physical assault. (Federal Judge Royce Lamberth of Washington, D.C., has blocked the government from transferring three transgender women into the male prison population or terminating their hormone treatments.)

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I wrote during Trump’s first term, when his anti-transgender policies were still gestating, that the goal was to show that “one can target any community, as long as it doesn’t have a strong political voice or political power. These are the actions of bullies and cowards, pretending to be strong.”

Last year, the Supreme Court struck its first blow against transgender rights by upholding a Tennessee law banning transgender care, including puberty blockers and hormone therapy, for minors. Similar laws have been enacted in 25 other states. The majority in that ruling by Chief Justice John G. Roberts Jr. was identical to the one in the June 30 ruling — Roberts, Kavanaugh, and Justices Clarence Thomas, Samuel A. Alito Jr., Neil M. Gorsuch and Amy Coney Barrett.

Who are the targets of this ideological campaign? They number only about 1.6 million U.S. adults, or one-half of 1% of the U.S. population. About 300,000 adolescents ages 13 to 17, or 1.4%, identify as transgender, according to a study by UCLA School of Law.

In West Virginia, as Justice Sonia Sotomayor observed in her dissenting opinion, “there was no record of any transgender person participating in school sports in the State, let along any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.”

In endorsing the flat bans directed at transgender women in Idaho and West Virginia, Kavanaugh argued that any attempt to implement case-by-case judgments of students’ requests to join sports teams inconsistent with their biological gender would create “an enormous practical and administrability problem.”

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Is that so? That wasn’t the case in Maine, where the annual K-12 population is more than 170,000. There, a committee was charged with determining whether a student’s participation in a sport consistent with their gender identity but inconsistent with their biological sex would “result in an unfair athletic advantage” or present a risk of injury to others. The committee held 56 hearings from 2013 through 2021, or an average of seven per year. During the entire time span, only four involved transgender girls. (The outcome of those hearings couldn’t be learned.)

It was Maine’s policy, one might recall, that provoked a confrontation between Trump and Maine Gov. Janet Mills at the White House last year, when Trump threatened to withhold federal funding from the state unless it barred transgender students from competing on women’s sports teams. “We’ll see you in court,” Mills snapped.

Whether the Idaho and West Virginia laws genuinely protect girls from unfair competition is questionable. (The Idaho law is styled the “Fairness in Women’s Sports Act.”) In practice, the laws may subject women in public schools to “invasive sex verification procedures,” as educational expert George Theoharis of Syracuse University wrote after the court ruling.

They’re also based on a retrograde view of women as fragile creatures needing men’s protection, Theoharis wrote — “the same logic that has historically been used to justify excluding women from making their own healthcare decisions and girls from rigorous math and science; that physically demanding work is simply beyond them.” (There don’t appear to be any state laws barring transgender women from competing in men’s sports.)

Becky Pepper-Jackson, the plaintiff in the West Virginia case, in which she is identified only as B.P.J., is the only transgender girl who sought to join girl’s teams — track and cross-country — in the state. That was in 2021, just after West Virginia passed its law and she was about to enter sixth grade. She didn’t appear to pose any competitive risk to others on the track and cross-country teams she applied to join — her lawyers told the Supreme Court that on those no-cut teams, she “came in near the back.”

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Anyway, she had not gone through male puberty, which theoretically might have endowed her with a competitive advantage, because she had been taking puberty blockers and female hormones.

Thanks to the court’s ruling, Sotomayor observed in a dissent joined by Justices Elena Kagan and Ketanji Brown Jackson, West Virginia can deny Becky access to school sports “because it thinks they have an inherent athletic advantage, even if the facts show that they do not.”

B.P.J., Sotomayor wrote, “cannot practice on girls’ teams, even if she would not take anyone’s spot in an eventual competition, even if everyone who tries out for the team makes it, and even if having the chance to participate could aid immensely in treating B. P. J.’s gender dysphoria.”

So whose interest was really protected by the Supreme Court?

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Orange County real estate investor pleads not guilty in $100 million bank fraud case

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Orange County real estate investor pleads not guilty in 0 million bank fraud case

An Orange County real estate investor accused of criminally defrauding an Arizona bank of nearly $100 million pleaded not guilty Monday and remains in custody.

Mahender Makhijani, 44, of Corona del Mar — who also was ordered by an arbitrator to pay $1.34 billion in a separate civil fraud case — was arraigned in Santa Ana federal court on two charges.

He is accused of bank fraud and making a false statement to a bank in a June 8 case involving a $100 million real estate loan made by Phoenix-based Western Alliance Bank. He was taken into custody on June 10.

Makhijani is accused of providing bogus collateral for the October 2024 loan now in default. In a civil lawsuit, Western Alliance said the outstanding balance as nearly $99 million.

Prosecutors say he falsified title insurance policies that showed the bank would have a first lien on the underlying collateral if the loan went bad, when in fact it did not.

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A trial was set for August 11 before U.S. District Judge David O. Carter in Santa Ana.

Michael Schachter, his criminal defense attorney, did not respond to messages seeking comment.

In the civil case, an arbitrator in May ordered Makhijani to pay Laguna Beach real estate mogul Mohammad Honarkar $1.34 billion after ruling he had fraudulently induced him into a 2021 joint venture — and then wrested control and lost to creditors more than two dozen properties Honarkar had owned.

Makhijani has not been criminally charged in that case, but prosecutors alleged in an affidavit in support of the bank fraud charges that he used “force and threats” in his dealings with Honarkar and others — including taking over the landmark Hotel Laguna in 2023 that Honarkar was renovating.

Prosecutors sought to hold Makhijani without bail after his arrest.

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The affidavit noted he is a legal Indian immigrant with a home and bank accounts in that country, has access to private jets and threatened to “run away” if caught in a difficult situation.

The request was denied and he was granted $500,000 bail.

However, Makhijani remains in custody after a hearing sought by prosecutors last month before Magistrate Judge Autumn Spaeth.

The judge declined to accept a $450,000 cashier’s check submitted by a Makhijani associate for the bail, finding insufficient proof the source of the funds was legitimate, according to court records.

Makhijani is not prominent outside Orange County real estate circles, but he established a thriving distressed-assets business over the last decade that attracted prominent Southern California real estate investors.

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Prosecutors said it paid for a lifestyle that included two multimillion-dollar homes in Corona del Mar, a luxury apartment in Newport Beach and various luxury vehicles.

As of last month, prosecutors had not fully traced his assets, which they believe are not held in his name and some of which may be in India.

The businessman employed an array of shell companies and strawmen to sign documents on his behalf, and to stand in for him as operators of his companies, according to the affidavit.

Makhijani told an associate he took extra precautions because wanted to insulate himself from litigation and that “they were sharks in the distressed world who took advantage of people,” the affidavit stated.

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