* Edelman ordered to pay about $559,000
* Emigrant says $3.1 mln loan used Giacometti work
* Defendant was model for film character Gordon Gekko
NEW YORK, July 15 (Reuters) - A New York judge has ordered Asher Edelman, an art dealer and former corporate raider used as a model for movie character Gordon Gekko, to pay Emigrant Bank about $559,000 to resolve a dispute over loans used to buy artwork, including an Alberto Giacometti sculpture.
Emigrant Bank Fine Art Finance LLC tried last July to hold Edelman in default on $3.1 million of loans, after tolerating what it described as three years of “late payments, missed payments, other defaults and collateral sales.”
Edelman countered that Emigrant had reneged on various promises regarding repayment, and prevented him from taking necessary actions to avoid default.
Justice James Yates of the New York State Supreme Court in Manhattan ordered on July 13 that the $559,323 payment be made. The order was made public on Thursday.
“We could have avoided the judgment, but instead invited it,” Edelman said in an interview. “I elected to have the court decide the disputed amount, so I could pay that amount, and return to the more important process of exposing and redressing, in the courts, Emigrant management’s misconduct.”
Citing a senior Emigrant banker, Edelman contended in court papers that Emigrant had “encouraged” him and other borrowers to shorten their loans’ maturity dates, to “assist Emigrant with federal bank regulators” by allowing it to post lower loan reserves.
Douglas Spelfogel, a lawyer representing Emigrant, did not immediately return a call seeking comment.
The $3.1 million sum included $2 million to buy the Giacometti sculpture “Torse de Femme.”
Edelman was a leading Wall Street raider in the 1980s before leaving finance and moving to Switzerland. He was among the people used to model Gekko for “Wall Street,” according to people involved in making the 1987 Oliver Stone film.
The case is Emigrant Bank Fine Art Finance LLC v. Edelman et al, New York State Supreme Court, New York County, No. 600607/2010. (Reporting by Jonathan Stempel in New York; editing by Andre Grenon)
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