Home / Crime and Justice / Judge Scraps $18.7M Judgment Due to Alleged Loan Forgery
Judge Scraps $18.7M Judgment Due to Alleged Loan Forgery
17 Mar
Summary
- A judge overturned an $18.7 million judgment against Meriden Housing Authority.
- Allegations of fraudulent loan acquisition by the former director surfaced.
- New evidence regarding board actions led to the judgment's dismissal.
A judge has vacated an $18.7 million judgment against the Meriden Housing Authority (MHA) and Maynard Road Corp. The ruling, issued this month by New Haven Judge James Spallone, was based on new evidence presented by interim MHA Executive Director Hayley Fetrow, particularly regarding "the commission's actions." This new information could have altered the initial outcome when the judgment was granted on May 12.
The case, Titan Capital ID LLC vs. Maynard Road Corp. et al, involves former director Robert Cappelletti. The nonprofits defaulted on a $16.2 million loan obtained by Cappelletti. Fetrow's affidavit claims Cappelletti forged signatures on resolutions to authorize the loan, a transaction not approved by the MHA or Maynard Road Corp. boards.
Cappelletti, fired on May 9, denies wrongdoing, with his lawyer stating he acted appropriately and with full authority. Titan Capital argued against reopening the judgment, asserting commissioners were aware of the litigation and that the MHA Board Chairman had discussed the debt. The FBI is also investigating Cappelletti for alleged fraud at the Groton Housing Authority.
The MHA's new board leadership, with Chairman Carlos Ruiz crediting Fetrow for her diligence, is focused on moving forward. Fetrow will assist with ongoing operations and the search for a new executive director. Titan Capital stated it will continue to pursue collection of the borrowed funds.
