A Naples-based project consultant is accusing developer Michael Stern’s partner, Italian entrepreneur Gianluca Vacchi, of stiffing him out of $1.7 million in fees tied to his financial evaluations of three planned condo projects in Miami and Miami Beach. The developments represent part of a $4 billion pipeline.
Genesis Project Management and Consulting, led by John Stamboulis, sued Fort Lauderdale-based GV Development Group, Vacchi’s firm, last month in Miami-Dade Circuit Court.
The complaint alleges GV Development partially paid Genesis for its services, but then failed to make full payment after canceling the consulting agreement in October. By then. Stamboulis had temporarily moved to Coral Gables and completed his analysis of one of the projects: Mercedes-Benz Places Miami. The joint venture is also developing 888 Brickell by Dolce & Gabbana, and another unnamed project at 1250 West Avenue in Miami Beach, next to Monad Terrace.
Stern’s JDS Development is the lead builder, and partnered with Vacchi’s firm in October.
“The claims are frivolous and entirely without merit,” Jason Giller, an attorney representing GV Development, said in a statement. “We will be moving for sanctions and filing a sizable counterclaim. The principals remain committed to the success of their projects which are unparalleled in this market.”
Vacchi’s firm initially paid Stamboulis for two months of work and expenses totaling $160,000, but then stopped sending payments, said Edward Buchanan, Genesis’ lawyer. “They just started ghosting him,” Buchanan said. “Then they terminated his contract, but it had a cancellation clause requiring them to pay over $1 million. They didn’t.”
Genesis specializes in construction project managerial services for high-end developments. In May of last year, Genesis began analyzing the Mercedes-Benz Places Miami project after Vacchi and GV’s other investor, Rafi Gibly, agreed to Stamboulis’ budget of $1.6 million, which included his annual salary and estimated expenses, including relocation costs to Miami-Dade County, the complaint alleges.
In his reports, Stamboulis offered a critical assessment of the project’s financial models, including his observation that hard and soft costs had risen by $45 million in the span from February to October. Stamboulis also opined that the project would be “significantly over budget” if they didn’t “make some drastic changes to the design.”
About the same time, Stamboulis was pestering Vacchi and Gibly about not receiving wire transfers for his payments, text messages attached to the complaint show. In one exchange, Vacchi reassured Stamboulis: “You are doing an excellent job and I appreciate it a lot! I’ll always protect you cuz I consider you a huge added value for the project and for me! Talk soon! Thanks.”
In another back and forth, Gibly claimed a wire transfer was imminent after Stamboulis said he had not received it. “I sent it to [the] bank,” Gibly texted. “They will.” Five days later, Stamboulis still had not received the money wire, another text shows.
“You must understand that $150,000 to most of you may not be a big deal, but to me it is!” Stamboulis told Vacchi and Gibly in the message. “Paying my bills on time and having a regular pay day is very important!”