Rockland nursing home investor sues Texas partners for $3M

A Rockland County investment firm is suing its partners for $3 million for allegedly misusing money and ignoring the terms of their arrangement to buy and operate nursing homes in Texas.

Elite HC Group of Spring Valley sued Apollo Healthcare Consulting & Management, of Houston, Dec. 14 in U.S. District Court, White Plains.

Hershel Bodansky formed Elite in 2019. Zachary Lapin of Houston formed Apollo last year, and he and co-owner David Efroymson, of New York City, are also named as defendants.

The businesses struck a deal earlier this year to own and operate health care facilities in Texas.

Elite would finance and own the real estate, according to the complaint, and Apollo would operate the facilities and own the management company. The licensed facilities would be owned 60% by Elite and 40% by Apollo.

Last spring the partners bought a retirement and nursing center in Austin for $9 million. In September they agreed to buy three skilled nursing facilities near Houston for $14 million.

Elite says it has put more than $1.1 million in the enterprise, including $760,000 in nonrefundable down payments for four properties and another $397,000 for various expenses.

The complaint alleges that despite their agreement, Apollo used Elite’s money to make real estate deals in its own name.

“When Elite learned that a certain real estate contract was in Apollo’s name,” the complaint states, “it repeatedly asked Apollo to transfer the contract into Elite’s name. Apollo refused.”

Elite accused its partners of unjust enrichment; conversion; and breaches of contract, implied covenant, and fiduciary duty.

It is demanding $3 million in damages.

Efforts to contact Apollo and its owners for their side of the story were unsuccessful.

Elite is represented by Nanuet attorney Brian K. Condon.