New South Wales court documents reveal that Efrem and Terry, and sometimes filmmaker brother Uli, formed an investment partnership to purchase properties across Sydney starting in 1978.
The Harkam family bought Noah’s, overlooking Bondi from Campbell Parade, for $5.6 million in 1997. Uri sold the partnership to Efrem and Terry in 2012.
The Harkam family expanded the building next door for $8.5 million in 2020, and last year sold the combined lot to Baron Pub for $68 million.
Terry was responsible for the day-to-day operations of the partnership. But Efrem’s lawyers said in court that Terry signed his wife, Geraldine, as a director and shareholder “without Efrem’s knowledge or consent.”
“This has enabled a significant amount of [partnership] The funds are being paid for those benefits,” Justice Stephen Robb concluded in a ruling this week.
“When Efrem discovered these problems, there was a rift between the brothers.”
There was no suggestion in the case that Terry’s deal or Geraldine’s appointment had been voided or misappropriated.
Rather, Efrem asked Judge Robb to issue an order freezing the partnership until Efrem’s lawyers can identify and recover Efrem’s share.
The hotelier also claimed that scale commercial loans worth $50 million, $46.5 million and $17 million had been secured behind the Harkam property.
“I had no knowledge of these loans. I was not consulted about these loans,” Efrem told the court.
It further claimed that $50.8 million flowed into Terry’s company without his consent.
Among the alleged “concerned transactions” were $6.2 million to Terry, Geraldine and their children, $1.3 million to Harcum Winery, $2.5 million to credit cards, and “unknown purposes.” included $6.2 million to
Terry’s lawyer countered that the financial statements sent to Efrem for his 100-page U.S. tax return duly reported all his businesses.
Judge Robb concluded that there was no evidence that the funds were misappropriated by Terry or Geraldine.
Efrem did not investigate any of the company’s internal affairs, the court said, which was handled by accountants.
“My team knew that I had a deep connection with Terry, that I trusted Terry, so they kept that in mind when they said I knew about the numbers. I have to keep it,” Efrem told the court.
Terry and Geraldine agreed to sell four properties owned by the partnership and put the money in trust. They demanded that Terry cut his $10 million out of the trust to pay off a loan from his one of his businesses.
The court agreed, and Terry and Geraldine’s $20 million-plus Vaucluse home was pledged as collateral for the transaction.
Efrem sued his brother in Sydney, but he was on the side of a $50 million double lawsuit from Terry and brother Ben for “breaching a contract” worth more than double Noah’s in Sydney. .
Terry and Ben claimed in nearly identical court filings that Efrem had rejected an “investment outcome” in the Lux Rodeo, the only hotel on Beverly Hills’ iconic and most valuable street.
The Harkam brothers partnered with another couple to purchase the 88-bedroom hotel for $12.25 million in 1995. They took full control in 2002 with Efrem becoming the majority owner.
Terry and Ben claim they were asked to provide more funding to transform the Luxe Rodeo into the “flagship” of their hotel empire and attract the likes of Rolex and Ferrari to its retail space.
They claimed that Efrem and his agent misrepresented the Lux Rodeo as unprofitable so that Efrem would not have to pay his brothers a cut of the profits.
“[Terry] Terry’s filings show that he trusted Efrem to manage his financial interests in Los Angeles with unwavering loyalty, and that Efrem owed that duty to plaintiff as a brother and controlling business partner.” is described.
“My dear brother, turn this whole situation into a joyous situation in which two brothers can rejoice in abundance.”
From Ben Harcum to Efrem
Terry and Ben accused Efrem and son Aaron of taking a $38 million loan and breaching the terms, resulting in millions of dollars in repayment in 2021. The hotel was closed by 2020 due to the pandemic.
The Harkam family sold the hotel for $200 million in December 2021 for a total profit of $160 million. However, Terry and Ben claim it was undervalued and was sold in a “fire sale” to escape financing.
“[Their] The forced sale also took place at a time when the global pandemic was slowing hotel operations, further reducing market demand and driving down the final sale price,” the court filings argued. ing.
Both Terry and Ben allege that Efrem and his son “conspired” to keep him out of the sale and “achieve the theft” by dumping $160 million into U.S. real estate.
The files claim that industrial buildings across California and apartment buildings in Manhattan were purchased by Efrem and Aaron’s firm in early 2022 as a “last resort” in the conspiracy.
A few weeks later, an email from Ben arrived in Efrem’s inbox. As with all Harkam family feuds, trust issues and staggering sums of money were heavily featured.
“When I sent you the money, I sent it to my brother, but I didn’t think it was appropriate to call a lawyer or an accountant to deal with him,” Ben wrote.
“It went really well at Rodeo Drive.”
Ben points out to Efrem that he owes him $25 million and asks him to deposit $5 million into his bank account.
“Dear brother, I beg you to turn this whole situation into a joyous one in which the two brothers can rejoice in the richness bestowed upon us by a much higher power. ‘ said Ben.
A month later, in July 2022, legal documents began to fly.
Ben’s U.S. lawsuit was settled this month, according to court documents. Terry continues.
Efrem is fighting Terry’s lawsuit, alleging that his brother did not adequately explain the terms of his contract with Lux Rodeo, nor detail when he was harmed in the past 28 years. there is
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https://www.smh.com.au/national/nsw/family-feud-former-owners-of-noah-s-backpackers-in-court-over-tens-of-millions-of-dollars-20230511-p5d7nl.html?ref=rss&utm_medium=rss&utm_source=rss_national_nsw Harkam brothers, former owners of Bondi Beach’s Noah’s Backpackers, feud in court over tens of millions of dollars