Heir to Barneys Served With Tax-Fraud Suit During New York Book Signing
Estranged brother filed a whistleblower complaint alleging the family dodged New York estate taxes on the late matriarch’s assets
Gene Pressman, a 74-year-old heir to the Barneys department store empire, was handed a tax-fraud lawsuit from his estranged brother while signing copies of his new memoir at a Manhattan bookstore last week, people familiar with the matter and court papers said.
A professional process server, who had purchased a copy of Pressman’s book and stood in line at Rizzoli Bookstore, produced court papers instead of seeking an autograph, according to sources. The suit was filed by his 71-year-old brother, Robert “Bob” Pressman, and was later confirmed by the attorney representing Bob.
The amended complaint, which a judge unsealed in June and which was filed in New York State Supreme Court, accuses members of the Pressman family of orchestrating a scheme that allegedly avoided New York estate taxes. The complaint, filed originally in July 2024, asserts the family falsely claimed their mother, Phyllis Pressman, was a Florida resident when she actually lived year-round in her oceanfront Southampton, N.Y., house for the final years of her life. The suit says the scheme deprived New York State of about $20 million and that tax liabilities and penalties could reach roughly $50 million.
Bob Pressman is pursuing the case under the New York False Claims Act as a whistleblower, which could entitle him to up to 30% of any recovery, the complaint states. Randall Fox, who represents Bob, said the important procedural fact was that Gene Pressman had been served and that the 20-day clock to answer the complaint had begun. Fox declined to discuss the book-signing encounter in detail, saying only that Gene Pressman was “not a happy camper” and that he “cursed” when handed the papers.
The suit names Gene and their two sisters, Elizabeth Pressman Neubardt and Nancy Pressman Dressler, as defendants. Fox said the sisters, who live in the New York metropolitan area, had already been served. Gene Pressman, who lives in West Palm Beach, Fla., was in New York for the book tour. He did not respond to requests for comment, and Bob Pressman declined to comment through intermediaries.
The complaint lays out the scope of Phyllis Pressman’s assets and the family’s ties to New York real estate. Phyllis, the widow of retail executive Fred Pressman who helped transform the family business into a luxury retailer, died last year at age 95. Court filings and public records referenced in the complaint put her estate at roughly $100 million and note ownership of a 2.3-acre oceanfront property in Southampton that has been listed for $38.5 million, along with an Upper East Side apartment that is in contract, according to the suit.
The legal action adds a new chapter to longstanding family disputes tied to the retailer. Gene, Bob and their sisters were executives at Barneys and presided over expansion and a 1996 bankruptcy. The siblings sold their stake in the business more than two decades ago, and relations have been strained since. Court history shows that Elizabeth and Nancy previously sued Bob, accusing him of diverting funds; a judge awarded the sisters $11.3 million in 2002 after finding merit in their claims. Bob has in the past denied similar allegations.
According to sources and prior reporting cited in the complaint, tensions escalated after Phyllis’s death when Bob received nothing from her estate. A trust agreement prepared by Phyllis’s attorneys is quoted in sources close to the case as stating, “Bob doesn’t get anything for reasons he well knows.” Bob has alleged in draft writings that his siblings and other family members were responsible for Barneys’ decline; Gene has publicly disputed Bob’s version of events, saying Bob shared responsibility for the company’s finances and that his account contained inaccuracies.
The lawsuit seeks unspecified relief and alleges statutory violations tied to false claims made to New York State. The case is moving through state court, and the parties will next address procedural deadlines and any forthcoming court filings. Public records show the amended complaint remains active in the New York State Supreme Court docket.
Legal experts said such disputes typically proceed through document discovery and depositions before any trial, and the state may investigate allegations of improper estate tax filings. The New York False Claims Act provides a mechanism for private individuals to bring suit on the state’s behalf and share in recoveries if the state intervenes or if the whistleblower’s claims are sustained.
As the litigation proceeds, the parties have so far issued limited statements. Gene Pressman continued public appearances tied to his memoir, "They All Came to Barneys: A Personal History of the World’s Greatest Store," while the complaint advances through the court system. Further developments, including potential motions to dismiss or settlement discussions, are expected to be reflected in forthcoming court filings.