N.Y. Supreme · Index 651885/2024
KHCA v. Versity / Crew
N.Y. Supreme, Index 651885/2024. Bridge-lender suit on Vintage, Walk, One on 4th, and Hayworth. Contract and alter-ego live; fraud dismissed as duplicative.
- Court
- Supreme Court of the State of New York, New York County, Commercial Division (Bannon, J.)
- Filed
- Original verified complaint NYSCEF Doc 49, 17 May 2024 (caption dated 10 Apr 2024)
- Operative pleading
- Verified first amended complaint, NYSCEF Doc 119, 13 Aug 2024
- Alleged unpaid
- About $56,157,281 of syndication proceeds on Vintage, Walk, One on 4th, and Hayworth. Allegation.
- 12 Dec 2024
- TRO / PI-phase decision, 2024 NY Slip Op 34396(U)
- 10 Apr 2026
- Contract and alter-ego live against Crew / Versity / Wettengel / Muro / Nelson. Fraud and conversion dismissed as duplicative of contract. KHCA appealed the dismissed counts.
KHCA sued Crew (then Versity Invest), Versity Investments, Wettengel, Muro, and Nelson on the unpaid bridge line behind Vintage, The Walk, One on 4th, and Hayworth.
The first amended complaint (NYSCEF Doc 119) alleges they sold syndications on those four DSTs and did not repay the line. The table puts alleged misappropriated proceeds at $56,157,281. Alleged uses include Apex South Creek (KHCA had declined to finance on 13 Sep 2022), Dana Point land, Anaheim hotels, an acquisition fee to Versity, and a Capistrano house. Those are allegations. Doc 49 says KHCA financed eight Core Assets and was repaid on four; the unpaid four are the ones still on this page.
The VIP Bonds circular names the 12 Apr 2022 first amendment the Crayhill Credit Facility; the New York plaintiff is KHCA Funding LLC and Knights Hill Ireland II DAC. Same exhibit.
10 Apr 2026 (Bannon): contract and alter-ego live. Fraud and conversion dismissed as duplicative of contract. KHCA appealed the dismissed counts.
Parallel Delaware IB actions: Vintage IB and Hayworth IB. KHCA says it became manager of Vintage IB on 30 Jun 2025.
Timeline
- 13 Sep 2022KHCA declined to finance Apex South Creek (300-unit Orlando multifamily). Allegation in the KHCA complaints. After the 1 Aug PSA.
- Apr–May 2024KHCA files NY Index 651885/2024 (original complaint NYSCEF Doc 49, 17 May 2024). Delaware SOS name change to Crew Enterprises on or about 11 Mar 2024. Nelson files arbitration (JAMS 5200001507 / 5200001580). Distributions stop across the portfolio around May 2024 (4th & J and Oakbrook the same month, per a 16 Apr 2025 post) — the same weeks as the yield-enhancement and rebrand PRs.
- 13 Aug 2024KHCA files a verified first amended complaint (NYSCEF Doc 119). Alleges $56,157,281 of syndication proceeds diverted from Hayworth, Vintage, Walk, and One on 4th. Allegations.
- Dec 2024NY TRO. Unsealed KHCA complaint becomes the thread’s source document.
- 30 Jun–1 Jul 2025KHCA says it became manager of Vintage IB, LLC (30 Jun letter) and of Hayworth Tanglewood IB the same day. Vintage IB, LLC v. Vintage, DST, Del. Ch. C.A. 2025-0757 filed 1 Jul. Same evening, Hayworth Tanglewood IB v. Hayworth Tanglewood DST, C.A. 2025-0748 (Transaction ID 76552285): verified complaint (HTML preview) plus exhibits A–D. Hayworth complaint alleges ~$37.7 million sold of ~$77.9 million, ~$20.1 million to the bridge lender, IB still ≥60%, and diversions including ≥$5 million to Apex and ≥$2 million to Sunstone. Allegations.
- Mar–10 Apr 2026Forum posts describe McQuade engagement letters as BD-funded; the letters themselves were not reviewed. NY order 10 Apr 2026 (Justice Bannon, 2026 NY Slip Op 31536(U)): contract and alter-ego live; fraud/conversion dismissed as duplicative. Real Deal (11 Mar): Midland/Wells foreclosure on The Buckingham.