Sapir Rosen Feud Now Introduces Data Theft and Loan Fraud
Trust betrayed. Broken contracts. Family exploited. Relationship destroyed.
The bitter feud between two former real estate business partners and brothers-in-law, Alex Sapir and Rotem Rosen, has been a toxic divorce. It includes charges of conspiracy, double crossing and theft, and includes several members of their families.
The two have been arguing since 2017, when they mostly broke up for $ 75 million. repurchase agreement. by Rosen real divorce last May his wife – Alex’s sister – added fuel to the fire. A few months later, Rosen A $ 103 million lawsuit against the estate of the late Tamir Sapir – Alex’s father – fanned the flames.
Now following a A $ 100 million lawsuit that Sapir and his family business sued Rosen and his brother Omer – the Sapir Organization’s general counsel until early 2019 – last week – hell threatens to continue to burn for years to come.
The Sapir trial filed last week accuses the brothers of conspiring to steal documents and trade secrets from the family. The brothers used this proprietary information to make investments, according to the lawsuit, several of which mirrored those the Sapir Organization had made.
Rotem and Omer “repaid our client’s trust with betrayal and took his kindness for weakness,” Sapir attorney Terrence Oved of Oved & Oved said in a statement. The file aims to “hold the Rosens accountable for their many alleged misdeeds”.
He also claims that Rosen used his marriage to Zina Sapir to “creep into increasing control of the Sapir Organization” and reap huge profits “without even contributing $ 1 of his own money.”
Rosen’s attorney, Sheron Korpus of Kasowitz Benson Torres, called the complaint false. It was, he said, “a desperate attempt to deflect attention from Rotem’s meritorious claims against the [Tamir] Sapir Estate and the recent breaches by Alex Sapir of the contractual agreements between him and Rotem.
On Tuesday morning, Rosen filed another complaint against Alex Sapir. Federal lawsuit alleges Sapir defaulted on a $ 60 million promissory note linked to the $ 75 million buyout in 2017 – of which $ 15 million was prepaid while the remainder was due on 15 years. The alleged default was caused by a mezzanine refinancing of an entity that owns properties at 260-261 Madison Avenue in New York City, which guaranteed Sapir’s debt to Rosen.
“Instead of disclosing the facts behind the apparent refinancing, Sapir launched a campaign of personal destruction against Rosen to distract from the publicity he knew would come when Rotem sought to exercise his contractual rights,” says the new complaint.
Oved called today’s filing “a baseless retaliatory action against Mr. Sapir to distract from the alleged misconduct against Rosen and his brother in the recently filed action against them in state court.” “.
Rosen’s $ 100 million lawsuit filed in August 2019 claims he saved Sapir’s real estate empire from ruin after the latest financial crisis and owes a fair share of that revenue. His success came despite that of Alex Sapir poor management of family wealth, he alleged.
According to this lawsuit, Rosen was awarded $ 75 million for helping restructure the debt of the Sapir organization, including HSBC loans valued at $ 180 million. But he says he was not compensated for several other lucrative deals, such as the repositioning and sale of 50 Murray, 53 Park Place and 11 Madison in Manhattan, which SL Green bought for $ 2.6 billion. in 2015.
Alex Sapir’s $ 100 million lawsuit against Rosen comes about two months after shareholders approved his offer to take over his real estate investment company, Sapir Corp., private. The move took three years for Alex Sapir, whose company owns the 264-key NoMo Soho hotel in New York City as well as the 16-unit Arte condominium project in Miami’s Surfside.
Rosen joined the family business Sapir after marrying Zina Sapir in 2007. She then left her managerial role in the company to care for their newborn baby. The lawsuit filed last week in the New York State Supreme Court alleges that Rosen “began an aggressive campaign to find himself a role in the Sapir organization by currying favor with her brother-in-law, Alex “, in 2009, in order to” relaunch his failing career in the real estate industry.
The lawsuit alleges questionable circumstances surrounding Rosen’s departure from Africa Israel USA in 2008 – without going into details – and claims he was fired from HFZ Capital a year later.
The brothers-in-law created a partnership entity known as ASRR – their initials – and Rosen hired his brother Omer to serve as general counsel. Another brother of Rosen, Tom, was hired to lead the company’s development and acquisition department.
As the complaint alleges, for more than a decade, Rotem Rosen has straddled the tails of the Sapir Organization, taking advantage of the trust and generosity of the Sapirs to siphon tens of millions of dollars, hijack proprietary information. and violate the contractual conditions of his eviction from the Sapir family and his company, ”according to Sapir’s lawyer.
At the start of 2017, the relationship between the Rosens and the Sapirs had broken down. “As part of their concerted plan to gain full control of the Sapir organization and convert its assets, the Rosens have started to systematically try to erase the Sapir brand and replace it with the RR brand from Rotem”, alleges the complaint Sapir.
After “Alex finally had enough”, according to the lawsuit, Sapir and Rotem began to negotiate the terms of a buyout. At this point, the lawsuit alleges that Omer Rosen was undermining the interests of the company, “sensing that he would likely be asked to leave the Sapir organization as well.”
For a week in June 2017, Omer sent more than 1,500 “confidential, proprietary and / or commercial information” from his work account to his personal email, then attempted to cover it up by suppressing the transmission of his sent file, according to the pursuit.
Omer’s alleged mass email transfers were uncovered last year, after he left the country without notifying his boss, according to Sapir’s lawsuit. After Alex Sapir was served with Rotem’s trial, Omer was fired upon his return weeks later. The Sapir lawsuit also claims that Omer used his position as general counsel to obtain a loan of $ 580,000 to buy a condo, with exceptionally favorable loan terms.
As part of Tuesday’s court case, he alleges that the transfer of documents by Omer Rosen was from companies jointly owned with Alex Sapir and was made to the knowledge of Sapir. “Rosen’s transactions owed nothing to alleged trade secrets obtained from Sapir, and Sapir’s accusation is based on a fantasy,” the filing said. He also alleges that “Rosen’s business associates have received harassing communications regarding the dispute with Sapir”.
In a separate written statement, Omer said the Sapir lawsuit was “in bad faith and with the intention of defaming my reputation and harming me in my business and profession.” He added that Sapir had provided “false facts” about him and “will be held responsible for these actions”.
According to Sapir’s lawsuit, the “massive library of documents” that Omer took from his employers has become “a roadmap for establishing a business to compete directly with the Sapir organization”. He named three specific deals that Rosen’s new venture, MRR – a partnership with Indian billionaire Anand Mahindra – allegedly executed following Rosen’s split from Alex Sapir, taking advantage of Sapir’s proprietary information. Rosen and Sapir were equal partners in ASRR before their split.
One of those deals was the $ 30 million acquisition Miami Development Site in June 2018, “on the other side of the street” of an assembly that ASRR and its partners had acquired for $ 33 million one year before. The $ 160 million acquisition of the Indigo Hotel on the Lower East Side, minutes from Nomo Soho – was another.
Rosen was also reportedly able to close a joint venture with an unnamed “large third-party real estate developer” in 2019 by taking advantage of Sapir’s documents relating to a canceled business with the same developer two years earlier, according to the lawsuit.
Meanwhile, other internal documents, relating to a “long-standing dispute” between Alex and his aunt, Rozita Sapir, have allegedly become ammunition for Rosen’s lawsuit against Tamir Sapir’s estate.
Sapir’s lawsuit called Rosen’s lawsuit a “frivolous claim” intended to help “get richer at the expense of the Sapir family, profit from her divorce, and create a platform to publish confidential information and / or derogatory on the Sapir family “.
Contact Kevin Sun at [email protected].