Smuggler’s Cove Now a Legal Battleground

smugglers coveTwo thirds of Smuggler’s Cove Resort & Marina’s investors want the struggling hotel and restaurant dissolved and are accusing the owner of operating “his own personal fiefdom.”

Court documents in the ongoing civil case detail how quickly the business relationship deteriorated between father and son Robert and Andrew Hirsch and Smuggler’s Cove owner Robert Cvetkovski not long after the Hirsches loaned Cvetkovski more than $600,000 in November 2014. Together, the men formed a company called HC Investment Group LLC.

By March 2015, arguments between the Hirsches and Cvetkovski began and he refused to provide them the company’s account information, according to a lawsuit filed by the Hirsches against Cvetkovski in May. Cvetkovski referred all questions about the lawsuit to his attorney John Jabro, who did not return multiple requests to comment on the case.

According to documents filed in Monroe County Circuit Court, the restaurant at the bayside mile marker 85.5 resort failed by April and vendors were collectively owed $50,000. The Hirsches’ attorney, John B. Agnetti, wrote in the initial complaint that his client “became concerned that Cvetkovski was operating the business as his own private fiefdom and he was being defrauded.”

About this time, Cvetkovski “became unstable,” according to Agnetti, and began sending text messages and e-mails to his partners and staff that Andrew Hirsch was a drug addict and not able to manage the business. “At this point, it became impossible for the parties to run the business,” Agnetti wrote. “The members became deadlocked in the management of corporate affairs.”

One text Cvetkovski sent to Robert Hirsch, which is included in the court filings, consists of bizarre statements about the elder Hirsch’s Jewish faith, and seemingly takes shots at Hirsch for supporting his son. “Bob how do u walk to temple every week? God blessed you. Why would you bother in this demonic behavior? It didn’t work out. Andrew and I could not get along. Big deal. Stop going to temple as that is not what you are thought there. Shame on you! I hope God punishes for the wrong doing you are personally involved in. You have not been a devoted clean soul to believe and be involved in this.”

On April 24, Robert Hirsch wrote a letter to Argos Properties LLC, the owner of the property Smuggler’s Cove occupies, that “all business at Smuggler’s Resort is to terminate immediately.” The elder Hirsch also e-mailed Cvetkovski that same day that his position, chief executive officer of HC Investment Group, “has been eliminated and no longer funded. The businesses are insolvent.”

Just three months earlier, Cvetkovski issued a press release touting the major renovations he made at the 12-room resort, restaurant and 80-slip marina since he bought it for $12 million in September 2014.

The motel and marina appear to still be operating, but it’s not clear if the restaurant is. Cvetkovski operates the business through Smuggler’s Resort & Marina LLC, which he incorporated in May.

Source: Recently renovated Smuggler’s Cove now a legal battleground | News | KeysNet

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