Tamara Ralph says her luxury label 'was ruined because my former lover ...

Tamara Ralph says her luxury label 'was ruined because my former lover ...
Tamara Ralph says her luxury fashion label 'was ruined because my former lover ...

The glamorous designer of Meghan Markle's £56,000 engagement dress has accused her former business partner and boyfriend of stealing millions of pounds from their luxury fashion label Ralph & Russo, contributing to its collapse.

For a decade, Tamara Ralph and Michael Russo were one of the most formidable couples in fashion, with A-list clients including Gwyneth Paltrow, Angelina Jolie and Kylie Minogue.

But explosive court documents, seen by The Mail on Sunday, claim their professional relationship disintegrated because Mr Russo bullied and harassed her after she attempted to stop him plundering vast sums from their company.

Earlier this month, we revealed how both Ms Ralph and Mr Russo had been accused in legal documents of raiding millions of pounds from the renowned fashion label to bankroll their jet-set lifestyle. 

For a decade, Tamara Ralph (pictured) and Michael Russo were one of the most formidable couples in fashion, with A-list clients including Gwyneth Paltrow, Angelina Jolie and Kylie Minogue

For a decade, Tamara Ralph (pictured) and Michael Russo were one of the most formidable couples in fashion, with A-list clients including Gwyneth Paltrow, Angelina Jolie and Kylie Minogue

We also reported allegations that Ralph & Russo's pension pot was raided before it plunged into administration in March, and that £2.8 million was owed to the taxman. The Serious Fraud Office and Pensions Regulator have been alerted to allegations of financial wrongdoing.

Ms Ralph, 39, who is being sued in the High Court by the company via its administrators for £20.8 million in damages, has always denied the allegations. Now, in extraordinary legal papers detailing her defence, she claims:

Investigations discovered that Mr Russo spent company money in a casino in London's Mayfair and on renting a secret property in LA; He used the label's money to fund a trip to Dubai, where he booked adjoining penthouse hotel suites; He went behind her back and bought a luxury Range Rover using company funds; She attempted to block him from using the company's bank account; Mr Russo launched a campaign of 'bullying, harassment, and abuse' against her; The stress caused by Russo's conduct, and from being sued by a company belonging to an investor, caused Ms Ralph, who was pregnant at the time, to be hospitalised; Mr Russo was sacked as the company's CEO last October due to his 'abusive conduct' towards her.

The glamorous designer of Meghan Markle’s (pictured) £56,000 engagement dress has accused her former business partner and boyfriend of stealing millions of pounds from their luxury fashion label Ralph & Russo, contributing to its collapse

The glamorous designer of Meghan Markle's (pictured) £56,000 engagement dress has accused her former business partner and boyfriend of stealing millions of pounds from their luxury fashion label Ralph & Russo, contributing to its collapse

Australians Ms Ralph and Mr Russo founded their label in 2010. They won global acclaim in December 2017 after designing the black dress with beaded bodice worn by Meghan for her official engagement photos.

The court documents claim their romance ended in 2017 and their professional relationship 'steadily deteriorated from 2019 as a result of Mr Russo's discrimination, abuse, harassment and bullying of Ms Ralph'. 

It is claimed that by late 2019, the company's chief financial officer had alerted Ms Ralph that 'large withdrawals of cash' were being made by Mr Russo 'which did not appear to be for business purposes'.

In February 2020, she was warned that the company was breaching an agreement that no more than £2.5 million could be paid out in so-called 'directors' loans'.

Ms Ralph says she told Mr Russo to stop withdrawing funds and 'repay the sums he owed'. But the documents claim she was ignored and that in March Mr Russo 'used company funds to book three first-class flights and interconnected penthouse hotel suites in Dubai'.

It is claimed that the following month, Ms Ralph tried to stop Mr Russo's spending by insisting that both she and the company's chief financial officer approve any future payments but that he again refused to comply.

Ms Ralph says her attempts to challenge her business partner's conduct resulted in his 'campaign of bullying, harassment and abuse' becoming increasingly hostile 'and escalated into repeated menacing statements that he wanted Ms Ralph to die'. She claims this caused her panic attacks.

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