Bank files claim against Ferraiolos for default loans

Court documents indicate attempt to evade bank collections, build villa in Italy
By Juliette Laaka | Mar 25, 2013

Rockland — The Bank of Maine filed foreclosures on multiple properties owned by members of the Ferraiolo family March 18, claiming the defendants owe nearly $10 million.

Defendants Frank Ferraiolo, John Ferraiolo, Vincent Ferraiolo and Filomena Ferraiolo face 10 counts, including six foreclosures, breach of contract and unjust enrichment, according to civil claim filed in Knox County Superior Court.

Promissory notes were also executed by Ferraiolo Construction Inc., Ferraiolo Corp., and Ferraiolo Pre-Cast.

The defendants own properties on Main Street in Rockland, as well as real estate in Camden, Rockport Union, Warren and Washington.

The defendants delivered a loan agreement to the bank in June 2011, including a personal guaranty of the borrower's obligations from Filomena Ferraiolo.

According to court documents — as of March 13 — the amount of principal and accrued interest on notes is nearly $10 million.

Justice Jeffrey Hjelm granted a motion for attachment filed by the plaintiff March 21. The attachment was made against the property of each of the defendants in the amount of $1 million.

The motion was granted because court documents state there is a danger the defendants, if notified in advance of the attachment of the property, will remove it from the state or otherwise make it unavailable to justify a judgment.

The defendants borrowed money from Ferraiolo entities and transferred it outside of the country, in excess of $1.3 million, according to court documents. The defendants failed to repatriate the money in violation with the bank agreement.

It is believed the funds went to the construction of a villa in Cervinara, Italy, state court documents.

The defendants also evaded the bank's collection efforts by merging corporate entities to file a petition for chapter 11 bankruptcy relief, which was in violation with the loan agreement, according to court documents.

In February, Vincent and John Ferraiolo attempted to transfer $20,000 each from Ferraiolo Construction Inc., to themselves personally.

The Bank of Maine is represented by Portland attorneys Wendy Paradis, Jeremy R. Fischer and Jay S. Geller.

John Ferraiolo did not return a request for comment March 25.

Courier Publications reporter Juliette Laaka can be reached at 594-4401 ext. 118 or via email at jlaaka@courierpublicationsllc.com.

Comments (2)
Posted by: Valerie Wass | Mar 26, 2013 08:55

I do believe that reporter's get their information, such as this article, from the court reports themselves, since it is public knowledge.



Posted by: Steve Waterman | Mar 25, 2013 16:01

If they had spent this money investing it in windmills, then gone bankrupt. And shipped the money offshore, it would not have made the news. Good luck.



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