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United States Bankruptcy Court
District of Massachusetts In re Chapter 11 V & M MANAGEMENT, INC., Case No. 96-10123-CJK Debtor ORDER ON GRACE ROMERO'S EMERGENCY PETITION TO STOP ALL EVICTIONS OF MANDELA RESIDENTS AND CONDUCT A CRIMINAL INVESTIGATION OF BEACON RESIDENTIAL PROPERTIES FOR TAX CREDIT FRAUD AND VIOLATION OF THE CONFIRMATION PLAN For the reasons set forth in the separate memorandum of decision issued today. Grace Romero's Emergency Petition to Stop All Evictions of Mandela Residents And Conduct a Criminal Investigation of Beacon Residential Properties For Tax Credit Fraud And Violation of The Confirmation Plan is hereby DENIED. Date: Sept 11,2000 Carol J Kenner United States Bankruptcy Judge cc: Ms. Grace Romero Mandela Homes Limited Partnership Paul Ricotta, Esq., for Beacon Residential Properties, Inc. Mr. Howard Cohen Stephen Gray, Creditors' Trustee Paul Moore, Esq., for Stephen Gray Eric Bradford, Esq., for United States Trustee _______________________________________________________ United States Bankruptcy Court District of Massachusetts In re Chapter 11 V & M MANAGEMENT, INC., Case No. 96-10123-CJK Debtor Date: Sept 11, 2000 MEMORANDUM OF DECISION ON GRACE ROMERO'S EMERGENCY PETITION TO STOP ALL EVICTIONS OF MANDELA RESIDENTS AND CONDUCT A CRIMINAL INVESTIGATION OF BEACON RESIDENTIAL PROPERTIES FOR TAX CREDIT FRAUD AND VIOLATION OF THE CONFIRMATION PLAN The movant. Grace Romero, is a tenant in an apartment complex (the "property") that, at the commencement of this case, belonged to the Debtor. Pursuant to the approved plan of reorganization in this case, the property has since been sold by the Chapter 11 Trustee to another entity--the Mandela Homes Limited Partnership (MHLP), of which Beacon Residential Properties, Inc. ("Beacon") was a general partner--and is no longer property of this estate. Ms. Romero now contends that Beacon is in the process of evicting her and other tenants from the property "illegally," by which she means in violation of her and the other tenants' rights as "part owners" of the property. By the above-entitled motion, she asks the Court to (1) stop all evictions of tenants, (2) conduct a criminal investigation of Beacon, (3) stop HUD Section 8 voucher payments pending the criminal investigation, (4) order a complete audit and annual budget for all expenditures of funds allotted for tenant services, and (5) conduct an investigation regarding violation of the confirmed plan of reorganization. Ms. Romero filed no certificate of service with respect to the motion, and the Court has received no response to the motion. The Court must deny the motion for lack of subject matter jurisdiction. The Court lacks subject matter jurisdiction because (1) the property at issue is no longer an asset of the estate in this bankruptcy case and therefore is no longer in the jurisdiction of this court; (2) each of the ;laims and demands for relief in this motion arise entirely under nonbankruptcy law, not under the Bankruptcy Code; (3) resolution of this motion would have no effect whatsoever on the estate 3r on this Chapter 11 case; and (4) this bankruptcy case is closed by order of December 23,1998. In addition, even if the Court had jurisdiction, the Court could not allow the motion because Ms. Romero has filed no certificate of service and thus does not appear to have served the motion on Beacon, MHLP, and other interested parties. Also, Ms. Romero is not an attorney md therefore lacks standing to seek relief on behalf of any tenant other than herself. For these reasons, a separate order will enter denying the motion. Date:9 11, 2000 Carol J Kenner United States Bankruptcy Judge cc: Ms. Grace Romero Mandela Homes Limited Partnership Paul Ricotta, Esq., for Beacon Residential Properties, Inc. Mr. Howard Cohen Stephen Gray, Creditors' Trustee Paul Moore, Esq., for Stephen Gray Eric Bradford, Esq., for United States Trustee _______________________________________________________ UNITED STATES BANKRUPTCY COURT DISTRICT OF Massachusetts CASE No. 96-10123-CJK GRACE ROMERO Plaintiff MANDELA HOMES LTD. PARTNERSHIP BEACON RESIDENTIAL PROPERTIES AND HOWARD E. COHEN Defendants MOTION Emergency Petition to stop the eviction of Grace Ronero on Monday August 7, 2000 Pending the outcone of notice of appeal filed on July 28, 2000 Tax Credit Fraud, Violation of the confirmation plan and Misusage of funds and alloted by HUD to pay utilities for tenent Defendants services. see Exibit 9,10,11,12 This is an action of tort for wrongful and fraudulent eviction of a tenant/resident with ownership interest in Mandela property ("Mandela") located in Roxbury, City of Boston. PARTIES 1. Plaintiff, Grace Romero, is an individual residing at 160 Northampton Street, Apartment 1B, City of Boston, Suffolk County, Massachusetts 02118. 2. Defendant, Mandela Homes Limited Partnership with principal business address at 1855 Washington Street, City of Boston, Suffolk County, Massachusetts 3. Defendant, Beacon Residential Properties with usual place of business at 2 Oliver Street, City of Boston, Suffolk County, Massachusetts. 4. Defendant, Howard E. Cohen is a President of Beacon with address ofc/o BRP, 2 Oliver Street, City of Boston, Suffolk County, Massachusetts. COUNT ONE -- FRAUDULENT EVICTION 5. The plaintiffs repeat, re-allege, and incorporate by reference as if set forth hereto in their entirety. Paragraphs 1 through 4 of this Complaint. 6. The residents of Mandela Apartments located in Roxbury ("Mandela") are owners of a Cooperative, Mandela Residents Cooperative Association ("MRCA"), a Massachusetts not-for-profit corporation established in August, 1990 with a Board of Directors. 7. On December 2, 1997, MRCA formed a for-profit corporation, the Mandela New Life Redevelopment Corporation ("New Life"), Exhibit 1. All shares of New Life are owned by MRCA. Id 8. New Life entered into a limited partnership with Beacon Residential Properties ("BRP")for to the purposes of purchasing Mandela from the trustee in bankruptcy, Steven S. Gray ("Trustee"). Exhibit 2. 9. The limited partnership, Mandela Homes LP, (Mandela Homes LP"), submitted a reorganization Plan ("Plan") to the US Bankruptcy Court which was subsequently confirmed by Bankruptcy Court Judge Carol J. Kenner. 10. However, on December 31,1997, the Trustee sold Mandela to BRP rather than to Mandela Homes LP. Exhibit 3. 11. In a tax credit application to HUD in 1998. however, the Trustee represented f as the primary applicant and received tax credits. Exhibit 4 By representing himself as the primary applicant (and owner), the Trustee thereby represented that the sale to BRP must have been rescinded. In its finding, the Office of the Bar Counsel stated that trustee Gray filed two false, or at least .grossly inaccurate, disclosure statements with the bankruptcy Court." Exhibit 5. The United States Bankruptcy Appellate Panel For The First Circuit has remanded the issue of ownership and tax credit to the Bankruptcy Court. Exhibit 6. 12. The Deed on Mandela, which is recorded at the Suffolk Registry of Deeds, however shows that Mandela Homes LP is the Grantee. Exhibit 7. 13. And as owners of MRCA with equity ownership in the Grantee, the residents, therefore, cannot be evicted or divested of their ownership. 14. In 1999, the plaintiff was served with quit notice by Mandela Homes LP. 15. During the trial, the Plaintiff served a subpoena on the Trustee to explain to the Court and Jury who actually owns Mandela Apartments - Mandela Homes LP, BRP or the trustee. On November 1, 1999, the Trustee submitted a "Motion of Third Party Witness Steven S. Gray To Quash Subpoena" in which he stated that Mandela Apartments soId to BRP in December of 1997. See Exhibit 3. 16. The Judge allowed the Trustee's motion and prevented the Jury from obtaining information as to the true owner of Mandela Apartments. 17. A judgment of eviction entered against plaintiffby the Boston Housing Court. On 8/2, 2000, plaintiff was served an Eviction Notice by Constable M. Anthony Lopes of 12 Goff Street, Suite I.Boston, MA 02136. Exhibit 8 Said eviction is to be carried out on Monday 8/7/ 2000 between 9 a.m. and 2 p.m. COUNT TWO - VIOLATION OF CHAPTER 93A 19. The plaintiffs repeat, re-allege, and incorporate by reference as if set forth hereto in their entirety. Paragraphs 1 through 18 of this Complaint. 20. The plaintiff had made several inquiries on BRP regarding resident ownership interest in Mandela Apartments. 21. The plaintiff has exercised her tenant rights and as a result is being fraudulently evicted with malicious intent in violation of the Consumer Protection Act. 22. The actions of the Defendants in the above Count constitute unfair and deceptive acts within the meaning ofM.G.L. c. 93A. 23. The unfair and deceptive acts or practices of Defendant Mandela Homes LP were performed willfully and knowingly.\ 24. As a result of these unfair and deceptive acts or practices of the Defendant, Plaintiff have suffered extensive damages. COUNT THREE - VIOLATION OF CHAPTER 93A 25. The plaintiffs repeat, re-allege, and incorporate by reference as if set forth hereto in their entirety. Paragraphs 1 through 24 of this Complaint. 26. The plaintiff had made several inquiries on BRP regarding resident ownership interest in Mandela Apartments. 27. The plaintiff has exercised her tenant rights and as a result is being fraudulently evicted with malicious intent in violation the Consumer Protection Act. 28. The actions of the Defendants in the above Count constitute unfair and deceptive acts within the meaning ofM.G.L. c. 93 A. 29. The unfair and deceptive acts or practices ofBRP were performed willfully and knowingly. 30. As a result of these unfair and deceptive acts or practices of the Defendant, Plaintiff have suffered extensive damages. COUNT FOUR - VIOLATION OF CHAPTER 93A 31. The plaintiffs repeat, re-allege, and incorporate by reference as if set forth hereto *'" ' . ,; ; ' .. .^i- 30 of this Complaint. 32. The plaintiff had made several inquiries on defendant Howard E. Cohen regarding resident ownership interest in Mandela Apartments. 33. The plaintiff has exercised her tenant rights and as a result is being fraudulently evicted with malicious intent in violation of the Consumer Protection Act. 34. The actions of the Defendant in the above Count constitute unfair and deceptive acts within the meaning of M.G.L. c. 93A. 35. The unfair and deceptive acts or practices of the defendant were performed willfully and knowingly. 36. As a result of these unfair and deceptive acts or practices of the Defendant, Plaintiff have suffered extensive damages. COUNT FIVE - INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS 37. The plaintiffs repeat, re-allege, and incorporate by reference as if set forth hereto in their entirety. Paragraphs 1 through 36 of this Complaint. 38. The plaintiff has been subjected to undue hardship as a result of the eviction proceedings. This has caused plaintiff to suffer emotional distress. 39. Defendants acts or practices were fraudulent, negligent and done with reckless disregard for the truth, justice and fair play. 40. Defendants knew or should have known that their acts or practices would cause plaintiff to suffer emotional distress. Grace Romero Pro-se PO BOX 230747 Astor Station Boston. Ka. 02123-0747 (617,) 445-2037 Work Date: 8/3/00-- cc Eric Bradford, United States Trustee Frederick Aufiero, Internal Revenue Service Donald Stern, United States Attorney |