NYC members-only club seeks $600 million fraud suit against developer Michael Shvo

The worlds of high-profile real estate and high-society clubbing collided explosively this week when the owners of the exclusive Core Club filed a sensational $600 million lawsuit against their alleged partner and landlord, Michael Shvo.

The lawsuit, filed in New York State Supreme Court, accuses Shvo of using “sinister and deceptive” schemes to lure the glamorous, business- and culture-focused Core Club to 711 Fifth Avenue, a building he allegedly owned.

The alleged acts included an underhanded attempt by Shvo to gain control of 50% of the club for one dollar; failure to keep promises to finance and build new club outposts in Milan, Italy, and San Francisco; and delaying and mismanaging the opening of the new club in Manhattan, which resulted in Core founders and owners Jennie and Dangene Enterprise having to resort to their own funds.

Membership in the ultra-exclusive Core Club, which spans 5,574 square meters on the top four floors of the former Coca-Cola building, starts at $15,000 per year and rises to $100,000 depending on the access level.

Bigger and fancier than its previous location at 66 E. 55th St. — where the Core Club first took place in 2002 — it attracts a cross-section of the city’s political, Wall Street, real estate and legal elite.

Current and former members include Mets owner Steven Cohen, Kenneth Cole, Tory Burch, NFL Commissioner Roger Goodell and financier Anthony Scaramucci.

The lawsuit came as a surprise. There appeared to be a love affair between the married Enterprises and Shvo, whose prominent office tenants at 711 Fifth include the French hotel company Accor, Loro Piana and Allen + CO. It is also home to Ralph Lauren’s brand new restaurant Polo Bar.

The gleaming property includes a restaurant called 555, a bar, a speakeasy-style lounge, outdoor terraces, an art gallery, private guest suites and a lavish spa.

Jennie Enterprise described the opening of the Core Club in October 2023 as “a pivotal moment in our history. With this new, distinctive location, we are opening an exciting new chapter in our founding vision.”

But for her and Dangene, the start was anything but exciting, according to the lawsuit, which was first reported by BisNow NY.

Shvo failed to obtain a timely occupancy permit, which is why the companies had to spend $800,000 to renew their lease at the current location, the complaint said.

The launch was also allegedly plagued by sloppy construction work. Among other things, it was claimed: “Shvo arbitrarily removed all light strips and ceiling lights from the project, leaving the club dimly lit and aesthetically unappealing.”

Shvo also allegedly used the club’s restaurant and event space for his own private events, for which he owes $80,000, including a child’s birthday party, and took advantage by performing favors for his wife, Seren, the indictment says.

But the core of the lawsuit is the allegation that Shvo failed to keep his promises to finance a $100 million “large-scale expansion” of the club in other cities and planned to illegally take 50 percent of the business.

According to the lawsuit, Shvo is merely the property manager of 711 Fifth Ave., which is actually owned by a German pension fund, Bayerische Versorgungskammer (BVK). He allegedly “attempted to use BVK’s resources to secure a 50 percent personal ownership interest in the Core Club.”

The Enterprises also said that Shvo and BVK colluded to get Core Club to sign an “unconscionable” lease for 711 Fifth based on Shvo’s promise to invest $100 million.

Shvo’s attorney, Morris Missry, called the lawsuit “a desperate attempt to prevent the owners of the Core Club from fulfilling the clear obligations to which they committed themselves in a series of binding written agreements.”

Missry added: “We will not be forced to grant rent reductions or other undeserved concessions and will vigorously defend ourselves against this lawsuit.”

According to one source, a settlement could come sooner than the lawsuit’s brutal language suggests, including a reference to Shvo’s previous “conviction for tax evasion” (Shvo paid $3.5 million in damages in 2018).

Neither the Enterprises nor their attorney responded to requests for comment.