David Robinson is suing his business partner for millions.

Robinson and Daniel Bassichis are co-founders of private equity firm Admiral Capital Group, which launched in 2008. The pair also has real estate under Admiral Columbus LLC. According to the San Antonio Express-News, now Robinson, Admiral Capital, and two associated firms have filed a lawsuit seeking more than $34 million in damages, alleging that Bassichis committed fraud, conversion, civil conspiracy, and more.

Robinson’s stake in Admiral Capital is 51% while Bassichis owns the remaining stake. Separately, Bassichis owns an investment firm focused on real estate, Vero Capital. According to Bassichis’s LinkedIn profile and the firm’s website, it was founded in 2007. However, the lawsuit claims Bassichis launched the firm in 2022, a year after receiving “the blessing of Robinson,” with the goal “to expand his individual investment opportunities” and “to create a separation” from Admiral Capital.

Reportedly, Admiral Capital is still registered in Delaware and “remained a separate entity and did not cease operations of its legacy investments.” The lawsuit stresses that US Living Structured Fund LP, also linked to Bassichis, is not connected to Admiral Capital. However, branding on Vero Capital’s website claims otherwise.

“Vero, formerly Admiral Capital Group, was founded in 2008 to deliver long term value to our investors and positively impact the communities where we invest,” a statement on Vero Capital’s website reads. “Since inception, we have acquired over $3 billion of real estate assets, and have invested in strategic private equity opportunities that benefit from our established relationships and competitive advantages.”

PC: Vero Capital

Another claim in the lawsuit suggested further wrongdoing carried out by Bassichis, who allegedly refinanced Admiral Columbus real estate holdings without the approval of Robinson or Admiral Capital. There was reportedly an estimated $18 million in net proceeds. The lawsuit claims that instead of Admiral Capital receiving its distributions “Bassichis diverted them to entities he directly or indirectly controlled.”

An estimated $4 million was allegedly transferred to Vero Capital and about $14 million to US Living Structured Fund LP for a high-rise apartment project in Dallas.

“These transfers were concealed from Robinson,” and Admiral Capital did not receive proceeds, according to the lawsuit. When Bassichis’ actions were discovered, he was removed as an Admiral Capital managing member on April 25. Robinson has taken over the role.

Robinson is seeking “a complete accounting from Bassichis” and for the amounts owed to be repaid.

Additionally, the lawsuit alleges that Bassichis used monies from ACRE MGMT Equity LP — a partnership that Robinson and Bassichis each own a 49.5% stake in, with 1% owned by Admiral Capital — to help cover salaries and expenses of Vero Capital and his other controlled businesses.

There had been an ultimatum placed for Oct. 8 for Bassichis and US Living Structured Fund LP to return nearly $24 million related to these monies, but the defendants allegedly “failed to meaningfully do so,” the suit says.

In total, plaintiffs are seeking more than $34 million in damages, as well as all “traceable profits, earnings, and appreciation” on the $18 million that was diverted from real estate proceeds.

In response to the lawsuit claims, Bassichis stated, according to the San Antonio Express News:

“David and I have known each other for twenty-three years and have shared a long and successful business relationship. In 2022, David stepped down from the business, and I continued as managing partner, overseeing the existing assets and working to grow the business in the best interests of our investors. We are proud of our track record and accomplishments. My team remains extraordinarily dedicated to doing what is best for our investors.

“While disputes between partners unfortunately arise, this matter is an isolated business disagreement regarding the wind-down of several assets and related issues, and I am confident it will be resolved quickly,” Bassichis added.