“Everybody’s Got To Eat”

by Staff | May 28, 2008 3:04 PM | | Comments (21)

DSCN9554.JPGSo explained a politically connected marshal to a state representative who asked why he was getting socked on fees for a foreclosure.

The state representative is New Haven’s Bob Megna (pictured). He got a taste of what it’s like for the growing numbers of New Haveners being foreclosed on — when he himself was served with a foreclosure complaint for a three-family investment property he owns through a limited liability corporation.

The marshal who’s making a killing off the crisis thanks to City Hall was … well, you can probably guess. (Here’s a hint.)

Megna makes no excuses for failing to pay a city tax bill. But the experience left him wondering about the private profits being made off the foreclosure crisis — and considering pushing legislation to curb add-on vulture costs. He submitted the following article about his experience.

* * * *

By Robert Megna

“Everybody’s got to eat.”

Those were the words spoken to me by State Marshal Peter Criscoulo when he served a foreclosure complaint to me on behalf of the City of New Haven. Mr. Criscoulo then went on to name the participants who make a living from this business.

The question I had asked of Mr. Criscoulo was: “Why wasn’t a simple letter sent to me by you or the law firm representing my city before the foreclosure action was undertaken?”

After all the January 2008 tax bill was sent to the wrong address. The bill should have been sent to my office at 5 Edwards St. — the same place at which the complaint was served.

The complaint regarded a property I purchased last August at 535 Quinnipiac Ave. The property is a three-family dwelling. I was served a foreclosure complaint for not paying the taxes due January of 2008. The taxes were $1,753.09.

When I purchased the property under a limited liability company known as “140 Q Ave
LLC,” my closing attorney merely indicated upon the deed that 140 Q Ave LLC is a business located in the City of New Haven, failing to list a mailing address on the deed. Therefore, according to the assessors office, the tax bill was sent to the vacant three-family property.

I know I am responsible for making sure my taxes are paid on my properties even if I
do not receive a bill, regardless of the reason why. But what about the obligation of the debt collectors to limit expenses to be paid by the taxpayer?

I asked the same question of the attorney representing the law firm.

I believe some time in April the law firm of Dolan & Luzzi, Inc. was retained by the City of New Haven to collect outstanding taxes from 140 Q Ave LLC. On May 19th I received a foreclosure complaint and spoke with Attorney Todd Sobieraj, who drafted the complaint on behalf of the firm. The complaint was the first and only notice I received from the law firm.

In order to locate 140 Q Ave LLC, Mr. Sobieraj simply went to the Secretary of the State’s website from his desktop computer. All limited liability corporations and their addresses are available at the website. The site lists an office address of 5 Edwards St., New Haven. The process takes about two minutes and is free.

I questioned why the collection process did not begin with a simple collection letter.

Attorney Sobieraj indicated to me that his assignment as an employee of the law firm was to commence a foreclosure action only.


Let’s see who “eats” as a result of this-high priced dept collection practice:

Title Searcher: $225.00
Attorney Fees: $468.00
Tenant Search on vacant building to Marshall Criscoulo: $50.00
Additional fee to Mr. Criscoulo for handing me the complaint at my office: $438.00.

So the legal costs and marshal fees, on top of the taxes, are $1,181.00.

A foreclosure process is expensive. I believe we should limit the cost to the already
financially-burdened taxpayer. Also, I understand the marshal is empowered to collect the outstanding tax for a fee of 15 percent, or $282.41. And maybe some attorneys are taking advantage of the process and capitalizing on the some taxpayers who made a simple mistake and would pay short of a foreclosure process.

I spoke with our tax collector, C.J. Cuticello, who confirmed the city expects vendors to minimize the expenses to taxpayers while undertaking the collection process.

I believe there needs to be clear written policy of what is expected of tax collection vendors doing business with the City of New Haven. More so now given the foreclosure rate and economic conditions. the city needs to mitigate the cost to the taxpayer.

The taxpayer has got to eat, too.

Previous Independent coverage of New Haven’s foreclosure crisis:

More Foreclosures, More Signs
Foreclosure Sale Benefits Archie Moore’s
Rescue Squad Swings Into Action
A Bidder Shows Up
Bank Beats Tanya’s Bid
Westville Auction Draws A Crowd
DeStefano: Foreclosure Plan Ready
Can They Help?
“We Should Over-Regulate These Bastards”
Rosa Hears of Rescues
WPCA Grilled on Foreclosures
WPCA’s Targets Struggle To Dig Out
Sue The Subprimers?
WPCA Hearing Delayed
Megna’s “Blood Boils” at WPCA Tactics
Goldfield Wants WPCA Answers
2 Days, 8 Foreclosure Suits
WPCA Goes On Foreclosure Binge
A Guru Weighs In
WPCA Targets Church
Subprime Mess Targeted
Renters Caught In Foreclosure King’s Fall
She’s One Of 1,150 In The Foreclosure Mill
Foreclosures Threaten Perrotti’s Empire
“I’m Not Going To Lay Down And Let Them Take My House”
Struggling Couple Sues Over “Scam”

The following links are to various materials and brochures designed to help homeowners avoid foreclosure.

How to prepare a complaint to the Department of Banking; Department of Banking Online Assistance Form; Connecticut Department of Banking, Avoiding Foreclosure; FDIC Consumer News; Statewide Legal Services of Connecticut, Inc; Connecticut Bar Association Lawyer Referral Service.

For lawyer referral services in New Haven, call 562-5750 or visit this website. For the Department of Social Services (DSS) Eviction Foreclosure Prevention Program (EFPP), call 211 to see which community-based organization in the state serves your town.

Click here for information on foreclosure prevention efforts from Empower New Haven.







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Comments

Posted by: Webblog 1 | May 28, 2008 4:05 PM

I feel ya Bob, but you said it all here:


"I know I am responsible for making sure my taxes are paid on my properties even if I
do not receive a bill, regardless of the reason why. But what about the obligation of the debt collectors to limit expenses to be paid by the taxpayer"?

Maybe you should introduce corrective legislation in the next general assembly. I hope you do just that.

Posted by: Robert Megna | May 28, 2008 4:59 PM

Weblog 1:
I think the our City of New Haven elected officials can simply and swiftly spell out guidelines to assure the least amount of cost is placed upon the taxpayer who may have over looked the tax bill or would pay short of a costly foreclosure action.

I will introduce legislation come January if the matter is not solved with our local elected officials. However generally towns do not like me, one legislator, telling them how to do their business by writing a law. So I would imagine any law I wrote would most likely pertain only to the our City of New Haven. Therefore It would be much easier for us to simply write guidelines for lawyers and marshals to follow.

Also when the collector makes the assignment, it should be to the marshal not the attorney when the cost can be mitigated.

The law limits the marshal fee to 15% if he is chosen to be the collector. Had the tax collector made the my assignment to Mr. Criscoulo to collect as opposed to the attorney the fee to Criscoulo would have been limited by law to about $226.00, assuming he could find my office on Edwards Street and I paid the outstanding taxbill.

The marshal fee goes up with each named defendant since each tenant is to be served. The funny thing was there were 2 named tenants to my vacant property.I have owned the property since last August and the tenants named upon the complaint did not reside in the building and never did at least for the past year. According to the attorney the marshal located the tenants and provided him the names to be served. I am questioning this practice, at the moment, of naming tenants who never lived there to my knowledge and that the building was vacant at the time of the commencing of the foreclosure process. Was this merely a method to increase the marshal and legal fees?

Posted by: Exiled Italian Shill | May 28, 2008 5:09 PM

The fees are excessive given the fact you are having your property being foreclosed. I agree with you 100%, but . . . .

"I spoke with our tax collector, C.J. Cuticello, who confirmed the city expects vendors to minimize the expenses to taxpayers while undertaking the collection process."

Please remember that the rates are set by the General Assembly AND NOT THE CITY. The last increase of Marshall rates of collection went from 10% to 15%.

Ummm, Bob . . . . you voted in favor of that bill. You voted to increase the Marshall rate.

"I believe we should limit the cost to the already
financially-burdened taxpayer. Also, I understand the marshal is empowered to collect the outstanding tax for a fee of 15 percent"

Ummm, Bob . . . . you should understand you VOTED TO INCREASE THEIR RATE!!!

I wonder how you voted to exempt the Marshalls from getting tickets for talking on the cell phone while driving . . . let me check on that and report back.

Soooo....you get served a writ for foreclosure because you are a scofflaw and you step up to defend the little guy because the collection raes of the Marshalls are too high. Nice try!

Bob you voted to increase the rate. The City dosen't set the rates. I like you, but you have lost all credibility with me on this one.

Sorry buddy but you got burned.


Posted by: Exiled Italian Shill | May 28, 2008 5:23 PM

Just checked the mobile telephone bill and yes you voted to give the exemption to Marshalls for phone use in the car.

Strike two Bob.

Posted by: walt bradley | May 28, 2008 5:42 PM

New Haven's best and most honest politician hands down. I love you Bob, I almost want to move out of Westville to "over the bridge" - almost.
I suppose you can now officially expect the Mayor's office to present a challanger for your sin of thinking aloud. Good luck, I've got your back.

Posted by: nfjanette [TypeKey Profile Page] | May 28, 2008 6:49 PM

And maybe some attorneys are taking advantage of the process and capitalizing on the some taxpayers who made a simple mistake and would pay short of a foreclosure process.

Gasp! You think so?

Posted by: facChek | May 28, 2008 9:16 PM

Bob,
This all could have been avoided had your closing attorney insisted on a proper address and/or a forwarding address to cover instances such as these. However, too late to cry of the spill.
I agree, something is definitely wrong when your back taxes plus interest is $1,753.09, and the collection fee is $1,181.00, That needs to be changed at the state and local level.

If the Exiled is correct and you voted to increase the Marshall fees than your argument is moot. Your vote has come back to haunt you.
But, if the Exiled is incorrect and you did not vote for the measure, then you gotta be mad as hell. Please clarify this question.

As for as the cell phone use while driving is concerned, this is not related to the question at hand.
The Shill just got exiled again....>>>>GO Shill.

Posted by: THREEFIFTHS | May 28, 2008 9:20 PM

I know how you can have this marshall not come and collect taxes. Have Rev. Bosie kimbo pray for you and than you will get off the hook!!! And you know what i mean by get off the hook!!!!

Posted by: king james v | May 28, 2008 9:49 PM

Just because Johnny D. didnt' become gov. doesnt' mean new haven is it's own state now run by said person.
Megna for Mayor! He's green, he's mean and answers to no man.
Although if he doesn't run, I still like Will Clark.
Obama for President, Clark or Megna for Mayor!

Posted by: In The Hood | May 28, 2008 10:22 PM

This article exposes unscrupulous, unconscionable, unprincipled, outrageous, greedy behavior by lawyers and marshalls-- tightening the screws to folks who are probably already down and out--albeit not the case for Megna.

This is a shameful sham!

Posted by: poor person | May 28, 2008 10:56 PM

Bob
just a plain mistake..i'm sure you can resolve this matter...as i said before things are not right in new haven...what once was a grate place to live and bring up a family is now a haven for i'llegals..the mayor and all of his puppets gotta go..including cuticello from the tax office..god bless you Bob.

Posted by: Robert Megna | May 29, 2008 4:41 AM

Shill and Facchek:

The marshals are legally empowered to collect the taxes without the city having to use an attorney and they can get 15%. That means the city could have used only Mr. Criscoulo and the bill to me in addition to the property taxes would only have been $226.00 not $1,100.00. The 15% is reasonable.
When the attorney was hired there were additional expenses. The marshal fee went to $488.00. The attorney did not have to be hired. Also the attorney could have simply requested payment and not have a marshal fee of $488.00. The marshal got a fee for service of papers when the attorney decided to commence a foreclosure. The $488.00 could have been 0.

I beleive the absence of city policy will permit some vendors to maximize fees. This is the issue I am seeking to correct.

I have no issue with marshal fees or attorney fees. Mr. Criscoulo is correct, they have to eat too. However we should just feed them a simple balanced meal, not put out an "all you can eat" buffet.

Posted by: Fedupwithliberals | May 29, 2008 9:39 AM

Now if we can get HANH to purchase a scatter site house next to Bob's home, we'll be all set!

Posted by: Charlie [TypeKey Profile Page] | May 29, 2008 10:52 AM

Bob,

Like you as a legislator -- always have. Like your independence and position on issues. But I am sure you will agree with me when I say, "Isn't life a bitch!" The irony of it all! So now that you have first-hand experience with this legal extortion, I'm sure you will do something about it (unless Johnny D intimdates you out of introducing some legislative reforms). I'm sure the snidely look on Criscuolo's face when he told you "everyone has to eat" made your blood boil. I hope some good comes out of this and you enact legislation to curb these practices, becuase it is legalized robbery and our Mayor doesn't care so long as his people "continue eating". I agree with you, everyone has to eat, but these guys won't even pass the salt!

Posted by: joe | May 29, 2008 12:56 PM

It's easier to stick the crews to somone who doesn't have money, figure it out, especially in this day and time. People can't pay their bills because there's not enough money, so the city goes after you for taxes and intrest, then an attorney get's involved and hires a marshal to serve you, more money to pay out, coupled with the fact that you couldn't afford stuff in the beginning....Am I painting a clear enough picture here? Oh and btw, just look at all the stuff johnnie d has been doing since his failed run for Gov. - I see a job with Yale on the horizon, mark my words. When it does happen, remember you saw it here first.

Joe

Posted by: James | May 29, 2008 2:39 PM

Joe, what are you saying? Times are tough? OK. But you don't pay your electricity, the power goes out. You don't pay your phone bill, no dial tone. You don't pay your taxes, the tax man comes after you. These are the hard realities of life. This isn't a debate about dodging responsibilities, and Mr. Megna doesn't for one second fail to take responsibility. It's about spending tax revenue wisely. Why do something for $1,500 that you could accomplish with $400? The only explanation given is that our City government overspends to "feed" political allies.

As for John D. shacking up with Yale, I do hope that they are smarter than that. What could he possibly have to offer other than lessons in how to squander resources and govern poorly.

Posted by: bugupit | May 29, 2008 5:40 PM

This is a great example of a legislator looking at an issue from the citizen's point of view. Expensive eye opener. I hope some good comes of it. Also a cautionary tale: Don't Expect Your Lawyer to Do Their Job Correctly! --- seems the more simple the task the more they find a way to mess it up in some small way that comes back to haunt you.

Posted by: poor person | May 29, 2008 6:35 PM

Feedupwithliberals
Bob Megna does have scattered housing in his area not next door but we do have more then what we need...maybe Johnnie would like them in his area.... i know i live two doors away from them

Posted by: Edward_H | June 1, 2008 12:32 PM

Megna

After all the January 2008 tax bill was sent to the wrong address. The bill should have been sent to my office at 5 Edwards St. -- the same place at which the complaint was served

You dont check the mail at your investment property? As an absentee landlord if you don't want to get out of the car and check the mailbox yourself can't you have someone else do it? How often would you make it out to your investment property if there were rent paying tenants living there? At least once a month I bet.

Posted by: Robert Megna | June 3, 2008 4:14 PM

Edward_H

I am totally to blame for not chasing down my tax bill or making sure it was paid last Jan. No doubt about it.

I check the properties often. I am a hands-on property owner for the most part. I own just a few properties.

I do not really check the mail because I do not expect to receive anything outside of my home or office.

Often it is personal experience which has led me to write public policy, so in a good way this happened to me, a lawmaker empowered by the people to have greater influence in making policy. Thats the positive which will come out of this experience.

I also filed a complaint with the marshal commission regarding the tenants named upon the complaint who did not reside in the building since I purchased the building last august.

I think the complaint is public knowledge, so if anybody has heard or Debbie Burgess or Jovannie Ortiz please let me know. According to the marshal they lived in my vacant building.

I will keep you posted on the outcome of the complaint, and if not resolved the proposed legislation for the 2009 session.

Posted by: bloggersareidiots | June 16, 2008 7:54 PM

seems to me the real story here is a State Representative who does not pay his taxes.

someone should check to see why Megna bought this property ..... could it be because the area is soon to receive some sort of state or federal redevelopment grant?

Sorry, Comments are closed for this entry

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