New York Post

The 'lyin's shares

‘Tricked’ into selling club stakes

- By JULIA MARSH jmarsh@nypost.com

The co-owner of two Manhattan hot spots that draw celebs like Rihanna and ex-Met Matt Harvey convinced his partner that the clubs were struggling, bought him out on the cheap — then turned around and sold his share for $60 million, a new lawsuit charges.

Nightlife impresario Richie Akiva, 42, and Scott Sartiano, 44, joined forces to launch the popular 1 OAK club on West 17th Street in 2008 with a $3 million investment.

The pair then built up their Butter Group, which included restaurant­s and other nightclubs such as Up & Down on West 14th Street, raking in $50 million a year by 2014.

But Akiva began lying to Sartiano, claiming 1 OAK and Up & Down were money pits, Sartiano alleges in his Manhattan Supreme Court lawsuit.

He persuaded Sartiano to let him buy him out with a series of lowball payments from 2015 to 2017, the suit says. The legal papers do not say how much Akiva payed Sartiano in all.

Akiva then sold what had been Sartiano’s shares to Canadian entertainm­ent mogul Daryl Katz for $60 million, Sartiano claims.

Sartiano is suing Akiva for $15 million.

Akiva hid his eightfigur­e transactio­n because it “was inconsiste­nt with what [he] was reporting to investors — that some of the clubs, including 1 OAK NYC and Up & Down, were struggling financiall­y and losing money,’’ the suit says.

“For example . . . [claiming] 1 OAK NYC has not returned any profits to investors since 2014, despite the fact that 1 OAK NYC purportedl­y made a profit of approximat­ely $1 million in 2016.”

A spokeswoma­n for Akiva told The Post on Sunday that he “vehemently’’ denies the “unfounded allegation­s.”

“This is simply the latest effort of Scott Sartiano, Mr. Akiva’s former business partner, to avoid the terms of the agreements he negotiated extensivel­y to exit the business,” the spokeswoma­n said.

“Richie Akiva will vigorously defend this baseless lawsuit and seek recovery of his legal fees and damages caused him by Mr. Sartiano’s breach of their agreement and defamatory conduct.”

Both Chelsea clubs have drawn A-listers. Rihanna played bartender at the Up & Down in April 2016, and Harvey was infamously partying at 1 OAK the night before failing to show up for a Mets game in May 2017.

Sartiano, who is married to model Allie Rizzo, now runs a Noho health-food eatery called Broken Coconut. But he has kept his celebrity following.

Leonardo DiCaprio, Bella Hadid and Jonah Hill all frequent the restaurant, which serves grain bowls and dairy-free coconut yogurt.

Akiva has stayed rooted in nightlife, running 1 OAK offshoots in Las Vegas, Los Angeles, the Maldives, Tokyo and Mexico City.

 ??  ?? FRAUGHT SPOTS: Scott Sartiano (left) claims Richie Akiva told him that 1 OAK and Up & Down were losing money in order to buy him out on the cheap.
FRAUGHT SPOTS: Scott Sartiano (left) claims Richie Akiva told him that 1 OAK and Up & Down were losing money in order to buy him out on the cheap.
 ??  ?? DARYL KATZ Paid $60M for hot spots.
DARYL KATZ Paid $60M for hot spots.

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