The owner of Sequoia, the classic 104-foot (32-meter) Trumpy that has served a dozen U.S. Presidents, is suing a company that provided a loan for maintenance and repairs. He’s alleging “a dastardly plan to wrest control of the Sequoia” and “overwhelming avarice.”
Sequoia’s owner is Gary Silversmith, a Washington, D.C.-based lawyer and developer. He acquired Sequoia, which was built in 1925, via the Sequoia Presidential Yacht Group in 2000, after she was put up for auction. Sequoia was the official U.S. Presidential yacht for 50 years, but she was sold in 1977 by President Jimmy Carter. He believed she was too lavish for both him and the economic crisis at the time. Sequoia entered private hands, and she even gained National Historic Landmark status in 1987. Unfortunately, the owners in the late 1990s could not keep her up. Silversmith spent substantial sums upon acquiring the megayacht to restore her and offer her for charters out of D.C. Even though Sequoia was no longer officially the Presidential yacht, Ronald Reagan, George H. Bush, and Bill Clinton all used her on occasion for official business.
The lawsuit, filed last week, accuses FE Partners of deliberately withholding part of a $5-million loan and then wrongfully claiming Silversmith defaulted. According to court documents, Silversmith struggled to continue maintaining Sequoia when the economic crisis hit. In July 2012, he came to terms with FE Partners, a U.S. corporation owned by Indian business moguls, the Timblo family. The Timblo family has interests in mining, media, hospitality, and shipping. The deal allowed FE Partners to buy Sequoia for $13 million if Silversmith wished to sell, as well as to buy her for just $7.8 million if Silversmith did not repay the loan. In the lawsuit, Silversmith states that FE Partners was required to provide $3.9 million as an initial loan installment, but only handed over $2.5 million. Silversmith further alleges that it was done on purpose, to guarantee he would be unable to fulfill his obligations.
The lawsuit adds that FE Partners subsequently sent several statements claiming different things. These include Silversmith reportedly failing to pay off some debts, being late in making payroll, and letting guests take prostitutes aboard Sequoia. (Silversmith denies all of the claims in the lawsuit.) FE Partners therefore wished to exercise the option to acquire Sequoia for $7.8 million. “Defendant’s actions are motivated by nothing more than overwhelming avarice and the malicious desire to wrest the Sequoia from Sequoia LLC for the benefit of the Timblo family,” the complaint claimed.
Richard Graf, a lawyer representing FE Partners, told Thomson Reuters that the lawsuit was “grossly inaccurate and without merit.” He added, “It is our intent to preserve the Sequoia Presidential Yacht—and other historically significant antique vessels—so that future generations of Americans will be able to enjoy and appreciate these treasured American artifacts.”
A hearing has been scheduled for this week. We’re following the developments and will update this story accordingly.
Giovanni ODDONE
I read this article of Thomson Reuters with much interest and remained waiting for some comments by some American readers. It seems there are none, so far. In May 2012 I published this video about the presidential yacht USS Williamsburg:
http://www.youtube.com/watch?v=A4_ViPgKHBE.
Maybe it’s a bit too long but the many comments testify that under many aspects it was appreciated. In my video I “attached” some of the story of Sequoia, so that’s why I’m informed about her and the wonderful job tha Gary Silversmith had done so far. So far….until I read this sad story of a loan and a court case.
My question is: in a Country like the US is it necessary to seek the help of a foreign investor to safeguard the “possibly the most important piece of Americana not owned by the United States government.”, a piece of American heritage that should be the pride of many Americans?
The little interest aroused by USS Williamsburg seems to confirm that sort of a lack of interest really exists.
Diane M. Byrne
The Sequoia lawsuit was just dismissed this week: https://megayachtnews.com/2013/01/court-dismisses-lawsuit-over-presidential-yacht-sequoia/
Regardless, whether we are talking about Sequoia or even the Williamsburg, it is not necessary to seek foreign investors. There have actually been some Americans interested in the Williamsburg, but the shipyard that has her on site wishes to be a part of any repair work, and that is a commitment that not everyone is willing to make. There are other complications, too, which are explained in our article here: https://megayachtnews.com/2012/02/presidential-yacht-williamsburg/
Giovanni ODDONE
Hi Diane,
Thanks for replying.
The complications you are referring to are these ?: “If an American steps forward to acquire Williamsburg and return her to use in U.S. waters, that could be problematic, due to the Jones Act. The Jones Act requires, among other things, that vessels carrying goods between U.S. ports be constructed in the United States. ……” ? I’ m unable to make that out !
The Americans that were interested in the Williamsburg did make a proposal that take into account the fact that the yard Navalmare has been babysitting the Williamsburg for so many years and sustained the relevant costs ? After all she was shipped here to undergo a substantial refitting: at that time there was the money but it seems it has disappeared, nobody knows how and where. Probably info about that would reveal why we are at a standstill with bringing the Williamsburg back to a decent condition and let Americans enjoy this historical monument.
Just for info: in the last 30 days my video has had 164 views, 120 in the US, with a peak of 98, 84 in the US, on Feb. 10. It seems that a sort of interest exists.
Diane M. Byrne
Because of the amount of new plating that would be needed, the project would not be considered a normal refit. It would be closer to a complete rebuild, so that explains the complications.
Giovanni ODDONE
It seams that there in much more interest over here about American presidential yachts:
http://www.youtube.com/watch?v=kUh1MVtqmgY
Martin
Silversmith called a “dog” by his own legal team for falsifying documents, destroying evidence, witness intimidation, as well as extortion and blackmail allegations – http://news.yahoo.com/judge-eyes-sanctions-presidential-yacht-152556888.html