Key facts
- Efraim Diveroli, a former arms dealer, is involved in a hostile takeover of Marc Kulick's Vesta Capital apartment portfolio.
- Kulick took out high-interest loans from Diveroli's family office, subsequently defaulting.
- Diveroli's company, YSA Investments, has placed second mortgages on properties and taken over management of some Vesta Capital assets.
- Kulick faces lawsuits from former business partners alleging fraud and misuse of funds.
- Multiple properties are subject to foreclosure proceedings by Fannie Mae, and several holding companies have filed for bankruptcy.
A legal battle has erupted over a large apartment portfolio in Oklahoma, pitting developer Marc Kulick against Efraim Diveroli, a former international arms dealer. Kulick, founder of Vesta Capital, is facing a hostile takeover orchestrated by Diveroli's company, YSA Investments, following defaults on high-interest loans.
Diveroli's firm has placed second mortgages on numerous properties and, with the assistance of local police, has taken over management of several apartment complexes in Tulsa. This aggressive action follows lawsuits filed by Kulick's former business partners, who accuse him of operating a years-long fraud to fund a lavish lifestyle and poker losses. They allege he redirected millions in company proceeds to personal accounts, leading to severe cash flow problems for Vesta Capital.
Kulick, however, maintains he acted in good faith and is fighting to retain control of the empire he built. He claims he was unable to secure traditional financing due to rising insurance costs and was forced to seek alternative lenders like Diveroli. The loans from YSA Investments reportedly carried exorbitant interest rates, compounding daily, which rapidly ballooned Kulick's debt to over $930 million. In response to the mounting financial pressure, several of Vesta's holding companies have filed for bankruptcy, and Fannie Mae has initiated foreclosure proceedings on eight properties.
Kulick's legal challenges include arguing against the involvement of police in what he considers a civil matter and attempting to remove the second mortgages placed by YSA. The situation has led to significant financial distress, with one Vesta property facing over $500 million in claims against significantly lower assets. Kulick's past accolades, including being featured in "40 Under 40" lists, stand in stark contrast to his current legal and financial predicaments.