Dysfunctional Family Businesses: Hyatt

Mike Schuster  Jul 09, 2009 2:47 am

Dysfunctional Family Businesses: Hyatt
 
At least there aren't any sex scandals!
 

At the center of the rivalry was the family's $15 billion fortune. But that amount was disputed, and those in charge of the family's finances -- Tom, Nick, and Penny Pritzker -- were accused of dipping into the capital to the tune of $500 million, and of storing large portions of it in (you guessed it!) secret offshore accounts.

It was decided that the $15 billion was to be split evenly between the 11 cousins. But that wasn't the end.

Liesel and Matthew Pritzker sued their father, Robert, alleging he withdrew the sume of their overseas trust funds totaling $1 billion. The accusation must have held water: The suit was settled for $900 million.

The family fought unsuccessfully to keep these feuds from being publicized, but the Chicago Tribune had other plans.

Recently, Penny Pritzker was expected to be tapped as commerce secretary by President Obama. Penny declined the offer, leading many to speculate her decision was made out of fear of the extensive vetting of presidential appointees -- a process that may have uncovered more creative tax planning.

But that didn't stop the  New York Times and Salon.com from exposing some shady practices by the Superior Bank of Chicago -- a major player in the sub-prime mortgage crisis -- while Penny was at its helm.

While the Pritzkers have earned their reputation as bickering fatcats, they should look on the bright side: At least there hasn't been a sex scandal.

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