New York-based multifamily investment firm ESG Kullen is suing its founder and a California entity connected to the business for alleged theft of millions of dollars, fraud and forgery.
ESG Kullen claims its founding principal, Thomas Delponti, and Kullen King Properties, an affiliate Delponti owns that invests in real estate, took “excess distributions” from profits between January 2018 and December 2024 to the tune of more than $3.4 million, according to a complaint filed Monday in New York County Supreme Court.
When Eric Granowsky, co-founder and principal of ESG Kullen, learned of the distributions, he confronted Delponti who said he would “true up,” per the suit. But Delponti continued to “take excess distributions using remote access to the company’s Chase bank account,” the suit says. Delponti was an authorized user of ESG Kullen’s bank accounts but the suit says he did not have Granowsky’s consent.
Kullen King is a 50 percent owner of ESG Kullen, which owns multifamily properties in multiple states. Delponti and Kullen King are located in Palos Verdes.
“The dispute stems from serious issues with financial mismanagement and control under Eric Granowsky, the managing member of ESG Kullen, who maintained sole authority over operations and distributions,” Delponti said in a statement provided to The Real Deal. “Forensic accounting has already documented forged documents, unauthorized loans and misappropriated funds under his leadership. These issues are at the heart of the dispute, and we intend to vigorously defend against these claims and assert our own rights.”
Attorneys for ESG Kullen did not provide a comment.
Delponti is also accused of using the company American Express credit card for $32,000 in personal expenses such as accounting bills and taxes, per the lawsuit, and forging a $400,0000 promissory note, “using the loan proceeds to benefit himself instead of the company,” the lawsuit reads.
“Delponti diverted the funds directly to his bank account bypassing the Company’s bank accounts,” per the suit, which says Delponti admitted to Granowsky he forged the note and took the funds for himself.
ESG Kullen was founded two and half decades ago by Granowsky and Delponti and has thousands of apartments throughout Florida, Nevada, North Carolina, California and Illinois. ESG Kullen is a value-add investor, acquiring and repurposing distressed properties.
Last year, the company took a loss on a nine-story complex in Chicago’s Gold Coast that it converted from condominiums to rental apartments.
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