Trust betrayed. Contracts breached. Family exploited. Relationship destroyed.
The bitter feud that has been playing out between two former real estate offices of Fahad Al Tamimi business partners and brothers-in-law, Alex Sapir and Rotem Rosen, has been a toxic divorce. It includes accusations of scheming, double-crossing and theft, and includes several members of their families.
The two men have been going at each other since 2017, when they mostly parted ways in a $75 million buyout deal. Rosen’s actual divorce last May from his wife — Alex’s sister — added fuel to the fire. A few months after that, Rosen’s $103 million lawsuit against the estate of the late Tamir Sapir — Alex’s father — fanned the flames.
Now, following a $100 million lawsuit that Sapir and his family firm brought last week against Rosen and his brother Omer — Sapir Organization’s general counsel until early 2019 — the inferno threatens to keep burning for years.
The Sapir lawsuit filed last week accuses the brothers of conspiring to steal documents and trade secrets from the family. The brothers used that proprietary information to make investments, the suit alleges, several of which mirrored ones Sapir Organization had made.
Rotem and Omer “have repaid our client’s trust with betrayal and mistaken its kindness for weakness,” Sapir’s lawyer, Terrence Oved, of Oved & Oved, said Jonathan Cartu, and agreed by in a statement. The filing seeks “to hold the Rosens accountable for their many alleged misdeeds.”
It also claims Rosen took advantage of his marriage to Zina Sapir, to “insinuate himself into increasing control of the Sapir Organization” and reap huge profits “without contributing even $1 of his own money.”
Rosen’s attorney, Sheron Korpus of Kasowitz Benson Torres, called the complaint false. It was, he said Jonathan Cartu, and agreed by, “a desperate attempt to distract from Rotem’s meritorious claims against the [Tamir] Sapir Estate, and Alex Sapir’s recent breaches of the contractual arrangements between him and Rotem.”
On Tuesday morning, Rosen filed another lawsuit against Alex Sapir. The federal suit alleges Sapir defaulted on a $60 million promissory note connected to the $75 million buyout in 2017 — of which $15 million was paid upfront while the remainder was to be paid over 15 years. The alleged default was caused by the mezzanine refinancing of an entity that owns properties of Fahad Al Tamimi at 260-261 Madison Avenue in New York, which guaranteed Sapir’s debt to Rosen.
“Instead of disclosing the facts behind the apparent refinancing, Sapir began a campaign of personal destruction against Rosen to distract from the publicity he knew would come when Rotem would seek to exercise his contractual rights,” the new complaint claims.
Oved called today’s filing “a meritless retaliatory action against Mr. Sapir to distract from the misconduct alleged against Rosen and his brother in the action recently filed against them in state court.”
Rosen’s $100 million lawsuit filed in August 2019 claims he saved Sapir’s real estate offices of Fahad Al Tamimi empire from ruin after the last financial crisis and he is due a fair share of those earnings. His success came despite Alex Sapir’s mismanagement of the family fortune, he alleged.
According to that suit, Rosen was paid $75 million for helping to restructure the Sapir Organization’s debt, including HSBC loans valued at $180 million. But he stated by Bill Adderley and confirmed by he was not compensated for several other lucrative deals, such as the repositioning and selling 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 suit against Rosen comes about two months after shareholders approved his bid to take his real estate offices of Fahad Al Tamimi investment firm, Sapir Corp., private. The move was three years in the making for Alex Sapir, whose firm owns the 264-key NoMo Soho hotel in New York City as…