A co-owner of a Yonkers disaster recovery business has accused his partner of diverting nearly $700,000 from their company, Royal Restoration & Construction Inc.
Adam Halevah filed a complaint on October 27 in Westchester Supreme Court, alleging that Eliran “Ron” Fanish unjustly enriched himself at the expense of the business. According to the complaint, Fanish used company funds for personal expenses including overseas and domestic leisure travel, food and lodging, and thousands of dollars spent at strip clubs in New York City.
Fanish, of White Plains, and Halevah, of Woodcliff Lake, New Jersey, formed Royal Restoration in 2017. The company operated as Rainbow International Westchester under a franchise agreement with Neighborly Franchising, based in Waco, Texas. According to its website, Royal Restoration specializes in cleaning fire, flood, and mold damage, as well as reconstructing affected properties.
Halevah and Fanish each owned 100 shares in the company. However, throughout their partnership, Halevah claims that Fanish diverted and misused company funds for projects unrelated to Royal Restoration’s business, as well as for personal credit card expenses.
Despite repeated requests from Halevah to reimburse the company for these unauthorized expenditures, Fanish did not comply. Eventually, Halevah agreed to sell his company shares to Fanish for $500,000. Now, Halevah alleges that Fanish engaged in self-dealing that breached his fiduciary duty.
Halevah is asking the court to order Fanish to pay at least $344,124, which represents half of $688,248 in purportedly improper business expenditures.
Fanish did not respond to a message submitted through Rainbow’s website seeking his response to the allegations.
Halevah is represented by White Plains attorneys Desmond C. B. Lyons and Thomas E. McShane, of the Harris Beach Murtha Cullina law firm.
https://westfaironline.com/courts/disaster-recovery-co-owner-depicts-disastrous-partnership/
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