Italian investor and entrepreneur Gianluca Vacchi filed a lawsuit against his partner, developer Michael Stern, over his investment in a North Beach development that has not come to fruition.
Vacchi accused Stern and two companies tied to him of a “deliberated and calculated fraud” in a scathing complaint filed in December, court records show. The lawsuit was temporarily stayed — in other words paused — earlier this month, but the complaint remains active.
Vacchi’s GV NBV sued Stern, 6345 JV LLC and 6345 Manager LLC over a $2.5 million investment in the Casablanca property, an oceanfront condo-hotel at 6345 Collins Avenue in Miami Beach.
The two partnered in 2024, forming a joint venture to invest in a $4 billion pipeline of new developments.
Vacchi joined Stern on Mercedes-Benz Places Miami, the Dolce & Gabbana-branded 888 Brickell and the 1250 West Avenue project in Miami Beach. But construction at Mercedes-Benz has moved slowly. At 1250 West Avenue, developer David Martin of Miami-based Terra joined Stern to take the lead on the project last year.
Vacchi also partnered with Stern, Anatomy Fitness owner Chris Paciello and Rafi Gibly on Sunset Padel, an indoor padel members’ only club that operates in Miami Beach’s Sunset Harbour.
Vacchi is part of the wealthy Vacchi family based in Italy. He sold his stake in their IMA Group, a manufacturing empire, in 2023. Reuters reported that year that the private equity firm BC Partners agreed to sell its stake in IMA to BDT & MSD Partners in a deal valuing the company at about 7 billion euros. A year ago, Vacchi was sued by a project consultant based in Naples, Florida, over allegedly unpaid fees tied to evaluations of the Stern-Vacchi developments.
Vacchi’s attorney, Jason Giller, declined to comment on the lawsuit involving Stern. Stern also declined to comment.
“Systematic” fraud
Vacchi alleges that Stern’s actions were evidence of “yet another scam conjured up by Stern.”
Vacchi alleges that Stern schemed him into investing $2 million into a planned redevelopment of the Casablanca, in May or June of 2024, through “brazen misrepresentations, fabricated or improperly modified documents, and concealment of material facts,” according to the complaint.
The first $2 million investment was promised as a “quick flip” and a “no lose” proposition, according to the lawsuit.
Stern provided Vacchi’s entity with what Stern allegedly claimed was a third-party valuation on the Casablanca land — valuing the site between $210 million and $276 million. Vacchi’s company would become a member of Stern’s LLC as part of the agreement. Vacchi pulled the trigger on the additional half a million dollars the following year. The valuation was actually created by JDS’ development director, the lawsuit alleges.
Stern allegedly represented that it would cost $150 million to buy out Casablanca, according to the lawsuit, which would have allowed for a big windfall had he purchased and then flipped the property at the valuation price.
Stern has refused to give Vacchi a membership certificate that shows his investment in 6345 JV LLC. Instead, Stern claims that GV Development Group, not GV NBV LLC, invested in the Stern entity. That dilutes his stake in the project and his overall investment to nearly $2.2 million, the complaint alleges.
It’s unknown how Stern and Vacchi will move forward, especially if the lawsuit continues. A source told The Real Deal that Vacchi’s investments are being bought out by an institutional investor.
Vacchi’s lawsuit cites information from JDSPulse.com, a website that Stern sued the anonymous operator of last year over allegedly defamatory statements. That complaint, filed last year, claims the unknown website owner orchestrated a smear campaign about Stern and his company. Stern is suing to uncover the identity of the person behind the site.
Vacchi’s complaint also alleges that Stern hid an “extensive history of defrauding his investors forcing them to pursue legal actions like this one just to get their money back.” The complaint dives into previous lawsuits that Stern has been involved in.
“To make matters worse, Stern also hid that he had a long history of artificially prolonging those legal battles through abusive and deceptive litigation tactics, which any reasonable investor like GV NBV would have wanted to know when deciding whether to invest with Stern or any entity that he controls,” according to the lawsuit.
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