Frist Apex Sued Black Spruce for Unpaid Distributions
The firm filed a lawsuit in New York County Supreme Court alleging that distributions stopped in early 2026.
Updated on Oct. 14, 2026 in Financial Crime
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Frist Apex has filed a lawsuit against Black Spruce Management, alleging the firm stopped paying its 20 percent share of investment distributions in February 2026. The plaintiff is now seeking a court order to have contested funds deposited with the court.
Why it matters
The legal conflict centers on claims that Black Spruce withheld distributions due to ongoing litigation, while the plaintiff alleges the funds are being used to cover personal financial strain. This dispute complicates broader corporate activities involving regional REIT assets.
Frist Apex filed the lawsuit in New York County Supreme Court on October 9, 2026. The legal action follows a separate dispute involving Floyd Mayweather, who sued Jona Rechnitz in May 2026 for the alleged diversion of $175 million.
The players
Frist Apex
This investment firm is the plaintiff in the lawsuit against Black Spruce Management seeking unpaid portfolio distributions.
Black Spruce Management
This company is currently being sued for allegedly withholding payments and is facing complexities in its asset acquisition plans.
Floyd Mayweather
The professional athlete previously sued Jona Rechnitz over the alleged diversion of $175 million in funds.
Jona Rechnitz
He is a central figure in multiple lawsuits alleging fraud and defamation, having previously pled guilty to fraud charges in 2016.
Josh Gotlib
He is an executive currently involved in litigation against Jona Rechnitz while managing the company's financial operations.
The details
Frist Apex requested a court order on Tuesday to secure the contested funds, citing concerns over how the money is being managed. Meanwhile, Jona Rechnitz faces separate allegations of fraud and defamation filed by Josh Gotlib and Meyer Orbach, following his 2016 guilty plea to fraud.
Timeline
Jona Rechnitz pled guilty to fraud charges in 2016.
Black Spruce allegedly stopped paying distributions to Frist Apex in February 2026.
Floyd Mayweather sued Jona Rechnitz for fund diversion in May 2026.
Frist Apex filed its lawsuit against Black Spruce on October 9, 2026.
Legal Context
This case follows a pattern set by the 2016 Jona Rechnitz fraud conviction, which has led to persistent legal scrutiny of his professional dealings. Recent lawsuits continue to highlight the volatility surrounding his business network and the associated financial disputes.
The ongoing litigation and financial strain reported by these firms could impact the stability of local real estate investments. Residents and stakeholders may face uncertainty regarding the management and availability of regional property assets during these legal proceedings.
The takeaway
Disputes over distribution payments often signal deeper liquidity issues within a management firm. Investors should monitor court filings and company disclosures to assess the long-term viability of their holdings.
Further reading
For more information on legal proceedings, visit New York Financial Crime.
Source note: This article includes information reported by The Real Deal New York.
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