Italian investor Gianluca Vacchi has filed a lawsuit against developer Michael Stern, alleging fraud related to a stalled North Beach development project. The legal complaint, submitted in December and currently paused but still active, accuses Stern and two associated companies of deliberate deception regarding Vacchi’s $2.5 million investment in the Casablanca property at 6345 Collins Avenue in Miami Beach.
Vacchi’s firm, GV NBV, claims that Stern used “brazen misrepresentations, fabricated or improperly modified documents, and concealment of material facts” to secure an initial $2 million investment for the planned redevelopment of the Casablanca condo-hotel in mid-2024. According to court filings, this investment was described as a “quick flip” and a “no lose” proposition.
Stern allegedly provided what he said was an independent third-party valuation of the Casablanca land—valuing it between $210 million and $276 million—but the lawsuit contends this valuation was actually created by JDS’ development director. An additional half-million-dollar investment followed the next year.
The agreement stipulated that Vacchi’s company would become a member of Stern’s LLC. However, according to the complaint, Stern refused to provide documentation confirming GV NBV’s membership in 6345 JV LLC and instead asserted that another entity had invested, reducing Vacchi’s stake to nearly $2.2 million.
Vacchi joined forces with Stern on several projects beginning in 2024, including Mercedes-Benz Places Miami and Dolce & Gabbana-branded developments. Progress on these ventures has been slow; at one site—1250 West Avenue—developer David Martin took over leadership last year.
In addition to real estate projects, Vacchi also partnered with Stern and others on Sunset Padel, an indoor padel club operating in Miami Beach.
Vacchi is part of Italy’s wealthy Vacchi family and previously sold his share in their IMA Group manufacturing business in 2023. That same year saw BC Partners agree to sell its IMA stake to BDT & MSD Partners for approximately 7 billion euros (https://www.reuters.com/markets/deals/bc-partners-sell-ima-stake-bdt-msd-partners-sources-2023-10-31/). In a separate matter last year, Vacchi faced another lawsuit from a Florida-based consultant over alleged unpaid fees connected to evaluations of joint developments with Stern.
Neither Jason Giller, attorney for Vacchi, nor Michael Stern commented on the ongoing litigation.
The complaint asserts that this case represents “yet another scam conjured up by Stern.” It further 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 document also details previous lawsuits involving Stern and accuses him of prolonging legal disputes through what it describes as abusive tactics: “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.”
The suit references information from JDSPulse.com—a website whose anonymous operator was sued by Stern last year over alleged defamatory statements about him and his company.
It remains unclear how relations between Vacchi and Stern will proceed if litigation continues. A source informed The Real Deal that institutional investors may be buying out Vacchi’s interests.
