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Dimon’s son-in-law has gotten right into a $ 21 million dispute between Apollo, an oil supervisor

Jamie Dimon’s son-in-law is embroiled in an unpleasant argument with a Texas-based vitality supervisor who, together with personal fairness large Apollo World Administration, accused him of orchestrating a plan to stabilize the oil and gasoline sector from his stake within the profitable drill Firm he constructed.

Joey Romeo – a Princeton-trained buyout supervisor who married his Harvard Enterprise Faculty mistress Juliet Dimon in 2011 – is a part of a gaggle of Apollo managers accused of luring Varun Mishra right into a partnership that ultimately pissed off with Mishra claiming he was defrauded of $ 21 million, in response to an explosive arbitration declare Mishra filed final month.

After Romeo and different Apollo executives used Mishra’s pure gasoline and petroleum experience to construct an vitality enterprise, they allegedly pushed him as CEO – a coup quickly after Mishra raised questions concerning the hundreds of thousands of {dollars} Romeo ordered on the expense of the Firm to debit accounts, so the file.

Varun Mishra has experience within the vitality enterprise.

Individuals near Apollo denied that any bills paid by Varun’s firm have been insufficient.

The Spat provides a uncommon glimpse into the cruel world of personal fairness offers, but in addition into the enterprise of the relations of the billionaire boss at JPMorgan Chase, who’ve largely been reluctant.

Romeo, now in his late 30s, owns a unit at 1185 Park Avenue – two flooring beneath the legendary banking tycoon – a $ 7 million, 3,825 sq. foot lot that’s the former residence of legendary furnishings designer Vladimir Kagan, property data present.

Other than a couple of marriage ceremony pictures on social media, one of many few public pictures of Romeo popped up on a controversial Christmas card from December 2013, the place Dimon and his household romped by way of the palatial condo, hitting tennis balls. In a single take, Romeo was caught leaping barefoot over furnishings.

Romeo has been with Apollo since 2013 – and, in response to sources, was introduced on board on the urging of the late, legendary JPMorgan dealmaker Jimmy Lee. Previous to Apollo, Romeo was an affiliate in GE Capital’s Power Monetary Providers enterprise.

“Jimmy known as lots of people to say, ‘Rent Joey,'” a supply aware of Apollo instructed the Publish. “Joey did not undergo the conventional hiring course of.”

Dimon Family Christmas Card Jumping Joe RomeoJoey Romeo, heart, seems on a 2013 Christmas card from the Dimon household.

MIshra, in the meantime, claims that Romeo received snooty and sarcastic as their relationship continued to deteriorate.

“Joseph Romeo will be described as an individual who consistently belittles you,” Mishra, a 41-year-old Indian immigrant who got here to the US as a pupil, instructed The Publish in a written assertion. “With out realizing me – or my immigration historical past – he commented on me: ‘Is not it too straightforward for all of you to generate income?'”

Romeo, named as a defendant within the arbitration together with Apollo and different numerous present and former workers of the agency, didn’t reply to the Publish’s request for remark.

An Apollo spokesman instructed the Publish that Mishra was “upset” and stated he was fired “for an essential motive.” The spokesman added that Mishra employed six totally different attorneys and filed a previous arbitration request “which he voluntarily withdrew”.

“We strongly help our crew and categorically reject the false, defamatory and ever-changing allegations made by Mr. Mishra,” stated the Apollo spokesman.

Mishra instructed The Publish that he withdrew a earlier arbitration declare as a result of he believed it might give him a greater likelihood of reaching an settlement with Apollo. After that settlement collapsed, Mishra stated he filed the present one.

Joey Romeo and Juliet DimonJoey Romeo and Juliet Dimon married in 2011.

Based on Mishra’s declare, Apollo executives reached out to him in 2015 to supply him no less than $ 400 million to assist construct a enterprise that may ultimately change into American Petroleum Companions. Below the deal, Mishra would contribute the Pennsylvania wells he amassed and function CEO for an H1-B visa, whereas Apollo would offer the capital for growth.

However the subsequent yr, Apollo and Romeo pulled the bottom on Mishra and dominated out a deal for APP to amass a big pure gasoline fracking firm for $ 360 million – solely to show the corporate over and get the corporate by way of one other agency during which some Apollo administrators have been “seemingly direct or oblique beneficiaries,” in response to arbitration papers.

Though he was allegedly uncared for by Apollo within the fracking deal, Mishra had already given his wells to the APP firm, in response to the criticism.

At that time, Mishra instructed the Publish that he famous that Romeo had authorized spending on the Apollo executives’ sedans and different high-quality journeys to be paid for out of American Petroleum. Based on Mishra’s lawsuit, Romeo sucked “a number of million {dollars}” out of Mishra’s enterprise to replenish the accounts of Apollo and its associates.

Jamie DimonJPMorgan CEO Jamie Dimon is Joey Romeo’s father-in-law.Getty Photos

Mishra claims Romeo directed Collin King, APP’s then CFO, “to make substantial funds to Apollo with out Mishra’s approval.”

“Earlier than he was fired, he by no means claimed, to my information, that the corporate reimbursed bills – Apollo or anybody else – that weren’t 100% reputable firm bills,” King, who now works for APP’s successor, Excessive Street Assets, instructed The Publish. “Romeo by no means directed me to approve inappropriate spending, and I by no means did.”

Mishra and his legal professional instructed The Publish that he really addressed the problem of inappropriate spending with King and Romeo straight.

Mishra claims he rang the alarm bells to alert Romeo’s superiors, however his protests exploded on his face. On November 7, 2019, Romeo traveled to Canonsburg, Pennsylvania along with his boss, Olivia Wassenaar, to face Mishra. They demanded that he resign and settle for a “meager” payout – in any other case he can be “terminated for good trigger,” in response to the criticism.

Mishra declined and located in his arbitration that he had by no means been reprimanded or warned – not to mention disciplined – for his efficiency as President and CEO of APP, and had not obtained any written notifications of breaches of his employment contract.

The allegations come as a result of Apollo was below a decree of consent in 2016 after the Securities and Alternate Fee stated a senior accomplice of Apollo improperly offset bills on sure funds owned by the corporate. If Mishra’s claims are discovered to be reputable, they might spark additional investigation by the SEC into Apollo’s practices, sources instructed the Publish.

Ernest Badway, a accomplice in Fox Rothschild regulation agency, stated the allegations appeared “horrible,” however added that they weren’t essentially unlawful. “Sadly, it might be a misallocation of bills” if Apollo companions billed journey and different bills to APP as an alternative of the corporate itself, Badway stated.

“The SEC began with quite a bit much less investigation,” he stated. Nonetheless, Badway stated, SEC regulators will concentrate on who might have been harmed by the alleged acts of Romeo and Apollo; if traders didn’t undergo losses – and solely mishra – regulators could also be much less positioned to analyze the scenario.

In the meantime, Apollo bought APP’s belongings in 2020 for roughly $ 30 million to Quantum Power Companions-owned Tug Hill Working, the arbitration request states. In Could final yr, Quantum bought its belongings – together with the previous APPs – to Premier Pure Assets for $ 6 billion, the declare stated.

Mishra obtained round $ 700,000 for his APP stake after the tug sale, however claims he ought to have obtained $ 21 million based mostly on what the belongings have been resold for – together with the $ 10 million to Fund he raised when he signed a cope with Apollo.

What do you think?

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