What was Leona Helmsley’s Net Worth?
Leona Helmsley, the “Queen of Mean”, was an American businesswoman with a net worth of $5 billion. She gained notoriety for her cruel treatment of employees and family. In the late 80s, Helmsley was convicted of federal income tax evasion and other crimes related to non-payment of contractors working on her home. She initially received a 16-year prison sentence, but it was later reduced to 19 months plus two months of house arrest.
Helmsley began her career as a condominium broker in 1968. She met Harry Helmsley, a multi-millionaire real estate entrepreneur, while working in the industry. The two became involved, and Harry divorced his wife of 33 years to marry Leona in 1972. Together, they built a New York City real estate empire that included properties such as the Empire State Building, the Park Lane Hotel, and the Helmsley Palace Hotel. They also owned Helmsley-Spear, a management and leasing business.
Early Life of Leona Helmsley
Leona Helmsley, originally known as Lena Rosenthal, was born in 1920 in Marbletown, New York. Her parents, Ida and Morris, were immigrants from Poland and were of Jewish descent. The family moved around several times before settling in Manhattan. Helmsley attended Abraham Lincoln High School briefly before dropping out to pursue her career. She changed her surname several times before legally changing it to Roberts.
Leona Helmsley’s Real Estate Empire
Leona Helmsley became involved with real estate entrepreneur Harry Helmsley and joined his brokerage firm as a senior vice-president, eventually marrying him. Together, they developed real estate in New York including 230 Park Avenue, the Empire State Building, and the Tudor City apartment complex. They also owned hotels such as the Helmsley Palace Hotel, the Park Lane Hotel, and the New York Helmsley Hotel, as well as lodging in other states. By 1989, Helmsley controlled 23 hotels in the chain.
However, Helmsley gained a negative reputation for insulting and firing her employees, and her real estate license was suspended for forcing tenants to buy condominiums. She then focused on running her husband’s hotel empire.
Leona Helmsley’s Tax Evasion and Fraud Conviction
In 1988, Leona Helmsley and her associates were indicted on both tax-related charges and extortion by then-US Attorney Rudy Giuliani. During the trial, it was revealed that most of the contractors’ work was illegally billed to the Helmsleys’ hotels as business expenses. Falsified invoices exposed the couple’s efforts to avoid tax liabilities.
Helmsley was convicted of three counts of tax evasion, one count of conspiracy to defraud the United States, three counts of filing false personal tax returns, 16 counts of assisting in the filing of false corporate and partnership tax returns, and ten counts of mail fraud. Her initial prison sentence was 16 years, but was reduced to 19 months after an appeal from her new lawyer, Alan Dershowitz.
The trial exposed the extent of Helmsley’s micromanaging and abusive behavior, which she directed at not only employees and contractors but also family members and senior executives. Legal observers of the trial noted Helmsley’s open hostility and arrogance, which they felt alienated the jury.
Charitable Contributions
In her later years, despite her reputation for cruelty, Leona Helmsley made some charitable contributions. She donated $5 million to help the families of New York City police and firefighters after the 9/11 attacks. She also donated significant amounts to the New York-Presbyterian Hospital.
However, in 2002, Helmsley was sued by a former employee who claimed he was fired for being gay. She was ordered to pay around $550,000 in damages. Helmsley spent her final years in isolation after being released from custody in 1994. Her husband left her his entire fortune, estimated at over $5 billion, but she was forced to relinquish control of most of her hotels and bars due to New York laws prohibiting convicted felons from holding alcohol licenses.
Leona Helmsley’s Marriages and Death
Leona Helmsley was married four times in her lifetime. Her first marriage was in 1938 to attorney Leo Panzirer, with whom she had a son named Jay. The couple divorced in 1952. She then married and divorced Joseph Lubin, an executive in the garment industry, twice. Finally, in 1972, she married Harry Helmsley, with whom she remained until his death.
Helmsley passed away at the age of 87 in 2007 due to congestive heart failure at her Connecticut home. Her remains were entombed next to her husband Harry in a $1.4 million mausoleum in Sleepy Hollow Cemetery in New York.
Upon her death, the majority of her estate, valued at over $4 billion, was left to the Leona M. and Harry B. Helmsley Charitable Trust. She also left a $12 million trust fund to her Maltese dog, Trouble, which was later reduced to $2 million, with the remaining funds going to the Charitable Trust and two of Helmsley’s disinherited grandchildren.
