New Haven Independent: State Rep: Marshal Fabricated Tenant Fees

State Rep: Marshal Fabricated Tenant Fees

by Melissa Bailey | June 17, 2008 8:53 AM | Permalink | Comments (23)

In the latest formal complaint filed against the mayor’s favorite state marshal, a state representative claims that Peter Criscuolo invented two tenants in order to jack up fees in a city foreclosure suit.

State Rep. Bob Megna recently filed the complaint before the State Marshal Commission. He claims State Marshal Criscuolo (pictured) overcharged him when the city enacted a foreclosure suit on an investment property he owns.

Megna’s firsthand experience as the target of a city foreclosure suit has spurred him to inquire into how law firms and marshals handle these lucrative cases on behalf of the city, and to consider proposing state legislation to limit padded fees. Click here for a prior article detailing what happened when he missed a tax bill on a three-story house.

Criscuolo’s nearly $500 in fees included a charge for serving the lawsuit to two supposed “tenants” who didn’t actually live at the house, Megna claimed.

“We’ve got marshals and lawyers slamming people on fees,” Megna said Monday. “It’s got to come to an end.”

The complaint is at least the seventh filed with the Commission against Criscuolo over the course of his career doing city business as an independent contractor. The first six complaints were dismissed or withdrawn.

Meanwhile, Alderman Jorge Perez has proposed local legislation to reform how work on city foreclosures is handed out to politically connected marshals like Criscuolo, a fund-raiser for Mayor John DeStefano.

Criscuolo said Monday that he did nothing wrong in Megna’s case.

“Unfortunately, there was an error on his part,” said Criscuolo. He said he’d be issuing a written response this week to Megna’s complaint. “I’m sure that Mr. Megna will understand when he sees.”

Megna admits fault for failing to pay a tax bill on an investment property he bought at 535 Quinnipiac Ave. Megna said the tax bills were sent to a vacant property. He never got them and missed his Jan. 1 bill. On May 19, he was served with a foreclosure complaint and paid his bill promptly.

Asking what the damage was, he found his $1,753 tax bill had been nearly doubled, heaped on with an extra $1,181 in fees. (“Everyone’s got to eat,” Criscuolo reportedly told him, according to Megna’s account.) Megna started looking into where all the fees came from.

“It makes me wonder,” he said, “of all the tremendous amount of fees they earn in the marshal process, how much of it is really unnecessary?”

Invented Tenants?

The city hired the law firm of Dolan & Luzzi to carry out the foreclosure suit. Dolan & Luzzi in turn hired their marshal of choice, Criscuolo, to take on Megna’s case. Last year, Criscuolo was the only marshal to do city business with Dolan & Luzzi; he earned $51,358 from the firm, according to state records.

Tasked with serving the complaint to interested parties, Criscuolo did a tenant search, for a fee of $50. He came up with two names: Debbie Burgess and Jovannie Ortiz. He billed Megna for serving them the complaint.

The problem is, according to Megna, the house was vacant at the time and no one by that name had lived in the house since he bought it in August of 2007.

“I don’t know these people,” Megna (pictured) said Monday. “Never heard of them.” The three-story home had two male tenants when he bought it, he said. Megna started eviction proceedings and both tenants left.

Criscuolo “either fabricated these tenants so as to enrich himself and increase his fee, or he was extremely unreasonable” in determining whether the tenants really lived there, Megna charged. Criscuolo could have knocked on the door and found the home empty, or checked the utility bills and found out no one was living there, Megna said.

Reached Monday, Criscuolo (pictured below) defended his actions. He said he personally went to the house after being assigned the case.

“At the time of service, the names of the tenants were on the mail and mailbox,” Criscuolo said. He said with documentation from the postal service that people were receiving mail at that address, it made sense to conclude that there were tenants there.

“There was no intent to do anything wrong on Mr. Megna’s or my part,” Criscuolo said.

According to the tax collector’s office, Criscuolo earned a total of $468 on the foreclosure. That’s $50 for a tenant search, $375 for service of the complaint and lis pendens, and $43 for release of lis pendens. Neither the city nor the law firm would provide a further breakdown of fees, but Criscuolo said he charged only what is allowed by state statute.

According to state law, marshals can charge $30 for serving a complaint, plus $10 for each additional plaintiff at the same address. In a letter to the mayor’s office, Megna questioned why the city leapt into costly foreclosure instead of just hiring a marshal to serve the tax warrant. Choosing the second method would’ve cost Megna only 15 percent of the taxes owed, or $263. The marshal could have found him easily and he would have paid promptly, he said.

C.J. Cuticello, the city tax collector, replied Monday that his office did make an effort to collect the taxes before resorting to foreclosure. Since Megna’s attorney didn’t list his business address when closing on the home, the city sent all the letters to 535 Quinnipiac instead of to Megna himself. His office sent letters to the home on four different occasions and used the media to get the word out when taxes are due.

At the end of the day, Cuticello did not appear to empathize with excuses from a tax scofflaw.

“There’s an area of public responsibility that everyone has to understand,” Cuticello said. “We as taxpayers have to take on some responsibility … to realize that the taxes are due.”

When Megna’s case comes before the State Marshal Commission, a disciplinary hearing will be held to determine if any punishment is due. Megna said depending on the outcome, he’d consider drafting legislation to ensure that marshals suffer consequences if they don’t uphold the law.

Previous Independent coverage of New Haven’s foreclosure crisis:

• 3 Minutes Too Late
• Historic Gambardella Property Foreclosed
•2 Homes Lost, 1 Gained
• “Everybody’s Got To Eat”
• 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: bloggersareidiots | June 17, 2008 9:50 AM

seems to me, the real story is that we have a State Rep that does not pay taxes on a run down investment! someone should check to see if the area of Megna's property is in a redevelopment zone or something similar. i wouldn't be surprised if he was going to get some state or federal funds in the near future.

i don't believe Megna for a second.

think about it .... why would this Marshal, that has been battered and slurred in this online rag make up tenants? he would risk losing his job, be liable to Megna for damages, lose more clients because of it.

it doesn't add up.

this reporter should shift gears - let's look at the scofflaw, let's check out the background of this property and this politician. i'll bet that this is where the story is!

Posted by: Lets get real | June 17, 2008 10:14 AM

Simple answer - just another example of how New Haven is disgustingly political! the sad thing is , he will still continue to be a marshall even after all this we are discovering about his professionalism. So whats the point???!. This city keeps who they want and hires who they want. If you see a city job, dont apply they already knew who they were hiring long before they posted the position. It unfortunate that this is the way our city works, but it is true when it comes down to working for the city, board of ed, housing authority etc...Crisculo will still be a marshall tomorrow thanks to his buddy DeStefano

Posted by: Don B | June 17, 2008 10:30 AM

blogger... guy - or should i say, MR CRISCULO, you know nothing.
Those of us who've been misidentified, wrongly charged and fallen victim to an honest mistake by a city official know that somethimes a simple "we're sorry for the mistake" is something that can quickly remedy the situation, but is impossible to get from the city. It's disgusting how the hubris generated from the top creeps into the fabric of city business. When we humans make mistakes, we apologize, and pay pay pay. when the city makes a mistake, WE pay pay pay. I'm sick and tired of it.
Give 'em hell Bob!!

Posted by: Not sure | June 17, 2008 10:36 AM

Not sure at all what the marshal did wrong here.

The state rep is complaining about a $50 tenant search fee? Wouldn't the marshal have had to have done the tenant search no matter whether there were tenants or not in a multi-family?

Why is this a story? Does not seem like it should really be about the marshal in this case but about the state rep.

Whatever one thinks about this marshal, I can't see anything wrong here.

On the other hand, as our taxes go up, an investor who fails to pay his taxes seems like the best kind of person for the city to go after.

And did he fight particularly hard for more money for New Haven? Money we might not even need if people like him paid their taxes.

If you have a first time moderate income home owner -- I say give them all the breaks we can.

But here you have an investor who screws the city. And is arrogant enough as an elected official to cry about fees that seem completely legitimate. Why is this newspaper giving him a sympathetic ear?

We all know we have to pay our taxes even if the tax bill goes to the wrong house. It's a state law, passed by the state legislature, of which this guy is a member.

And in this case they did not go to the wrong house -- does he not pick up the mail or check on his properties?

Posted by: bloggersareidiots | June 17, 2008 11:24 AM

lets get real,

but this story is Megna, not Crisculo.

i'd bet you a cup of coffee those tenants lived there.

Posted by: bfair | June 17, 2008 11:49 AM

I agree with "Let's get real". Take a good look at who is running this city and how.The article states that "there have been 7 complaints filed with the commission and the first 6 were dismissed or withdrawn". Wonder what the outcome of the 7th complaint will be utilzing the same commission? Therein lies the problem. Solution: A community elected commission.

Posted by: Exile Italian Shill | June 17, 2008 12:31 PM

Let me say it once again that the general assembly votes on the rates that marshals can charge and Megna has voted to increase the rates in the past. If he does not like what marshals are able to charge than why did he vote to increase the amount? sour grapes from megna.

Posted by: the apostle | June 17, 2008 5:01 PM

The comments in this section appear to be done by the relatives of both the state rep and the marshal, since the comments from this peanut gallery are boderline moronic

Posted by: robert megna | June 17, 2008 7:29 PM

There are 2 issues. One is the tax collection methods of Mr. Cuticellos office and whether there is a attempt to reign in the vendors to mitigate costs to people like me, and the second is whether Criscoulo or other marshals are running up their fees on the taxpayer. I intend to research the issues, create debate and fix the problems if they exist.

This issues are real and maybe costing taxpayers money.

Never been called a scofflaw before. But I guess I am.

Posted by: In The Hood | June 17, 2008 8:49 PM

I love the folks who call NHI bloggers all kinds of names and then the namecallers themselves read and participate in the blog. Interesting!

Posted by: -fairhavener- | June 17, 2008 9:43 PM

I just walked by the house today and noticed that it is for sale. I looked it up and the name it is registered under as owner is JAPONICA PROPERTIES LLC.

A quick two second search shows that Debbie Burgess lives(ed) at 533 Q Ave, not 535.

What does that mean? I don't really know or care, as long as we get the tax money owed.

Posted by: elmcityguy | June 18, 2008 9:32 AM

Mr. Menga,

It's too bad it took this happening to you to see that what seems like little fees here, little fees there end up adding up to a lot of money needed up front in order to settle things like this. It stinks you are going through this, but it also stinks for regular citizens that they get ignored when this sort of thing happens to them.

Your reaction to this is exactly why people think that those of you representing us have little to no idea what the average working stiff is up against. I don't mean that as a slam on you, just a commentary. I wish MORE public officials came up against laws they helped pass and saw how they affected regular folks.

As far as Criscuolo,... Lets his friends go, treats the common people like scum. No way the city should still be giving him business. And I say this as someone who doesn't hate the concept of towing tax scofflaws. Just the way it is done. And yes, I got towed once too for it. ONCE.

Posted by: robert megna | June 18, 2008 11:56 AM

Debbie Burgess lived at 533 but Criscoulo charged me about 75 dollars to serve her. She was a tenant somewhere else. Sounds like he went to the wrong address when he did his so called tenant search . Thank Fairhavener.
He was suppose to serve only people in my building which was vacant at the time of the process. I think each service he gets about 80 dollars. What about Jovannie Ortiz. Does anybody know where she lives.

Posted by: elmcityguy | June 18, 2008 2:55 PM

I'm all for sticking it to The Man, but does anyone else feel weird giving out these people's names and addresses here The Indepenent?

Posted by: -fairhavener- | June 18, 2008 5:26 PM

elmcityguy,

It's public info dude.

Posted by: Here's an idea | June 18, 2008 7:23 PM

Mr. State Rep:

I cannot believe you are using the New Haven Independent to try to find out where people live.

Is this not embarrassing to you in the least?

You are not paying your taxes and you got caught. Now you are complaining about an $80 fee?

When are you going to pay your taxes?

What are you doing to lower our taxes, because by not paying your taxes you are making the rest of ours go up.

And why is your property vacant?

Posted by: robert megna | June 18, 2008 8:30 PM

I believe it is public knowledge, the lawsuit.

It makes me wonder, how many fees other taxpayers may have been forced to pay due to intentional or unintentional errors on behalf of marshals.

This process is a great forum to address issues. I am simply trying to fix problem for the people of New Haven and maybe the state.

Fairhavener,thanks so much. And by the way how do you do that search for tenants?

Posted by: veryconcerned | June 19, 2008 1:06 AM

Megna has too much time on his hands. He should worry about picking up his mail at "his vacant" property and pay his taxes on time. I wonder if he was late in filing his state and federal tax returns? For someone who has a hand in writing the laws he is pretty naive. By the way what does Megna do in his real life?

Posted by: Robert Megna | June 19, 2008 9:40 AM

Creating public policy by way of public debate in order to prevent unjust methods of earning legal and marshal fees is part of what we do as elected State Representatives.

Posted by: -fairhavener- | June 19, 2008 10:18 AM

"And by the way how do you do that search for tenants?"

I'll tell you, but it's going to cost you $80 (up front).

Posted by: bloggersareidiotsb | June 21, 2008 9:22 AM

"Creating public policy by way of public debate in order to prevent unjust methods of earning legal and marshal fees is part of what we do as elected State Representatives."

Megna - you have got to be kidding us right? you have attempted to trash a State Marshal on this blog as well as throw around in public the names of 2 citizens that have nothing to do with your issue.

Your issue is this: You are a slumlord. You are a scofflaw. You got caught up in the system. You did not pay your taxes and you somehow think that attacking the Tax Collector and the Marshal will cause us to look in the other direction.

You are wrong.

The issue is we have a State Representative - an admitted scofflaw - that did not pay his taxes. He now is trying to do everything he can to draw attention away from that fact. And he happens to be lucky enough that this particular tax collector and Marshal have been in the news of late.

Megna - you are exhibiting the very behavior that we are tired of in politicians. i will be very surprised if the people vote for a scofflaw in november.

Posted by: robert megna | June 22, 2008 11:53 AM

No Marshal shall charge more then they are legally permitted by law for service, nor create unjustified or illegal charges for services against any taxpayer in any town or city within Connecticut. I hope my situation is an isolated example.

Posted by: bloggersareidiots | June 23, 2008 2:02 AM

i agree.

and no person shall get away with not paying taxes.

and no politician shall get reelected after breaking the laws of connecticut.

and no scofflaw will be successful in redirecting our attention due to a questionable $80.

you are digging yourself in deeper, mr. representative. i would go duck under cover until late summer - people will remember if you don't.

New Haven Independent

State Rep: Marshal Fabricated Tenant Fees

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