Lily Cates, a name whispered in New York social circles, evokes images of an unconventional widow. Picture her strolling through Chinatown, a long black coat billowing behind her, a playful Mickey Mouse tote swinging from her shoulder. This isn’t just any accessory; it’s a treasure chest for the day’s finds, a testament to her relentless quest for exquisite, and often expensive, jewelry. For Lily Cates, the thrill is in the chase, and the reward, a profitable acquisition. This penchant for astute acquisition extends beyond gems and trinkets; it’s the very quality that drew her into the orbit of Alberto Vilar, a once-celebrated money manager and opera benefactor. Their friendship, spanning over two decades, took a dramatic turn when Vilar was indicted for allegedly swindling her out of a staggering $5 million.
But who is Lily Cates beyond the headlines of financial scandal? She is a woman of intriguing layers: the divorced second wife of the late Joseph Cates, a Broadway and television producer who famously adopted his stage name from Katz. She is also the estranged mother of actress Phoebe Cates and the widow of Californian cinema magnate Marshall Naify. At 67, Lily Cates is described by those who know her as a captivating blend of “charming” and “benevolent,” yet possessing a streak of “vindictive” resolve. As one long-time acquaintance noted, “She is kind and wonderful, but if she feels wronged, she can turn on a dime.”
Born to Filipino and Chinese-Spanish heritage, Lily Cates is undeniably attractive and has navigated the upper echelons of society with grace and acumen. Following her divorce from Joseph Cates in 1973, she was linked to several affluent men before marrying Marshall Naify in 1999. Naify’s vast fortune, estimated at $385 million at the time of his death, made her a woman of significant means. However, her inheritance of $10 million from Naify after his death less than a year later was not enough. Lily Cates contested his estate, seeking a larger share. After settling that case, she then pursued legal action against her own lawyers for alleged malpractice, a case she ultimately lost and is currently appealing, demonstrating a persistent and litigious nature.
Adding another layer to her complex persona, two years after Naify’s passing, Lily Cates raised eyebrows within her social circle by appearing with Joseph Salerno, a landscape designer over thirty years her junior. “People called him ‘The Gigolo’ – that’s how it looked,” a source confided, highlighting the whispers and judgments that followed the May-December romance. Salerno became a fixture in Cates’ life, accompanying her to business meetings and becoming involved in some of her financial dealings, according to an associate. “It seemed like she included him in everything,” the source remarked. Public records indicate that Salerno shared Cates’ West 77th Street apartment, one of four she owns in the city, further solidifying his presence in her life.
Alberto Vilar, the financier and philanthropist now embroiled in scandal, was a long-time friend of Lily Cates, and according to her claims to friends, once a suitor. He was often seen in the company of Cates and Salerno. Initially, Vilar was reportedly suspicious of the younger man but eventually warmed to him. “They did a lot together, the three of them,” said a friend of Vilar’s. “Alberto could see Lily really had a thing for Salerno and he made her happy. Alberto always wanted Lily to be happy.” The relationship between Cates and Salerno deepened to the point of engagement. According to a source close to the couple, “Lily engaged herself to [Salerno] – she bought a ring, a nine-carat emerald. And then she gave him the money to pay for it, so it looked like he was buying it for her.” This anecdote underscores Lily Cates’ penchant for grand gestures and orchestrating a certain image. “Lily is very much about the big show,” a friend commented. “Joe Cates gave her the show. Marshall Naify gave her the show. This guy [Salerno], he apparently made her happy, but he wasn’t in a position to give her the show. So she created it for him.”
Despite the engagement and the elaborate charade, the relationship with Salerno dissolved after about a year. Sources described a bitter end, marked by “recriminations, accusations.” Cates reportedly began to disparage Salerno, branding him a “mob-wannabe,” among other negative descriptions. Salerno declined to comment on their past relationship, leaving the details of their breakup shrouded in speculation.
It was during this period of her engagement to Salerno, in 2002, that Lily Cates entrusted $5 million to Alberto Vilar. The federal indictment alleges that this sum was intended for investment in a new fund through Vilar’s firm, Amerindo Investment Advisers, aimed at fostering venture capital for small businesses. However, prosecutors claim the money was misappropriated by Vilar to cover personal expenses and charitable pledges, a consequence of his dwindling finances after the dot-com bubble burst in the early 2000s. Vilar, whose personal wealth was once estimated at a staggering $950 million, faced severe financial difficulties. While Vilar has not publicly responded to the charges, which carry a potential 30-year prison sentence upon conviction, his lawyer, Susan Necheles, hinted at a defense strategy suggesting the $5 million was a “personal loan” from Cates to aid Vilar during his financial straits.
“When Lily Cates gave Alberto Vilar that money, it was a personal loan,” an insider, a mutual friend of both Cates and Vilar, insisted. “There was no new fund yet – it hadn’t been set up. Alberto was having a lot of financial trouble, and she gave him the money to help him out. It was a personal deal, not business.” This perspective paints a picture of a more complex financial relationship between Cates and Vilar, one that extended beyond a simple investor-money manager dynamic. “For years, Lily and Alberto floated money back and forth to each other like it was candy,” one source observed, suggesting a history of informal financial exchanges. Another source with business dealings with both individuals claimed, “Lily always claimed to be a silent partner in Amerindo.” Sources also recount instances of Cates showcasing an office at Amerindo’s Park Avenue headquarters, asserting it was hers. One source even alleged she was involved in trading foreign interest rate instruments for Amerindo, further blurring the lines of her involvement with Vilar’s firm.
Lily Cates did not respond to requests for comment, leaving phone messages unanswered at her West 70th Street residence. At Vilar’s bail hearing, Necheles, Vilar’s lawyer, questioned the reliability of Cates’ accusations to prosecutors. “The mere fact that this woman said something is not exactly the strongest case,” Necheles argued, highlighting Cates’ reputation as “an extremely litigious woman.” Indeed, court records reveal a substantial history of lawsuits involving Lily Cates as a plaintiff, often against former friends or business associates, reinforcing the image of a woman not afraid to engage in legal battles. Vilar remains in custody, held on $4 million bail, awaiting his day in Manhattan federal court, while the case of Lily Cates and Alberto Vilar continues to unfold, revealing the intricate web of relationships, wealth, and alleged betrayal within New York’s high society.
