You dont do these deals if theres profit to be made. This saved Paterakis H&S Development Co. $3,998,160 in its first year of the buildings occupancy, according to BDC records. She alleged she was deprived of her rightful inheritance by sham trust transactions perpetrated by her stepchildren. June 28, 2018. But his political largesse landed him in hot water in 2010. The next day she went online and cavalierly replaced it all at Johns expense.. Our source scoffed at this explanation, saying, I bet its what George Philippou offered them, referring to the longtime lawyer for H&S Properties, who is married to the youngest daughter of the late John Paterakis. Bill Cole insisted yesterday that the $1.5 million payment by H&S is far above what we believe the city would get in the remaining seven years of the PILOT.. (Fern Shen), Developer Paterakis orchestrates $130,000 in campaign contributions to Sheila Dixon. Roula was seeking one-third of the decades-run family bakeries, Nusinov said. The opinion cited a ruling this June by the Maryland Court of Appeals in another case, which recognized interference as a wrongful act. By: Adam Bednar A final count, involving what Roula Paterakis said was her husbands promise to leave her $20 million, was dismissed. A deals a deal. All that remains of the lawsuit are defamation and false light claims, according to Jeffrey E. Nusinov, a lawyer for the family. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. While she and the estate representatives "have made progress toward resolving that dispute," she said, "they need additional time to complete their negotiations. By submitting your email to receive this newsletter, you agree to our. She is still wealthy by most estimates, though; she owns the house where she and John Paterakis lived together, as well as bank accounts worth about $800,000. There were also funeral expenses and probate fees and other administrative costs. Paterakis was fined $25,000 and banned from making political contributions until 2012. Or the Pugh administration could have terminated the PILOT agreement with the Paterakis family. Calling the second wife of John Paterakis a material girl, two of his children from his first marriage filed suit against her in Baltimore County Circuit Court on Thursday alleging she took advantage of the ailing bakery magnate and developer to enrich herself. "There are legitimate ways to shelter income," said Bobby Waldrup, accounting professor and interim associate dean of the Sellinger School of Business at Loyola University Maryland. ____________________________________. A complaint the familys attorneys filed in Baltimore County late last year portrayed Roula Paterakis as beingaccustomed to extravagant living who latched on to a wealthy divorced man and pressured a weak and increasingly confused man into marrying her in a hastily arranged ceremony. According to Roula Paterakis' lawsuit, that figure should be much greater. He was referred to as the bread man by some politicians, a nod not only to his successful bakery but to his ability to make campaign contributions. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Eventually John Paterakis Sr. invested in real estate development, such as Harbor East, which reshaped the citys waterfront skyline. "You're almost guaranteed litigation," he said. He was 87 when he died on Oct. 16, 2016, from complications of a bone marrow disease. Get all the top news and sports from the baltimoresun.com. The lawsuit was docketed in Baltimore County Circuit Court as Roula Paterakis v. William J. Paterakis et al., No. Subscribers to Maryland Family Law Update can access the digital edition archive. Loving father of Stephen Paterakis and his wife Vickie, William Paterakis and his late wife Deborah, Vanessa Smith and her husband Frederick, John Paterakis, Jr. and his wife Emily, Charles. Is your client emotionally ready for retirement? Baltimore County Circuit Judge Colleen A. Cavanaugh found Roula Paterakis claim of sham trust transactions to be without merit, a determination affirmed by the Court of Special Appeals. Adam Bednar covers real estate and development for The Daily Record. At issue is reconciling what Roula Paterakis' lawsuit says is "cash hoards" that her late husband maintained in an office safe, bank accounts and safe deposit boxes, with what has been filed in Orphans' Court, which makes no mention of such stashes, she said. John Paterakis, like many wealthy people, kept many of his assets in trusts. All rights reserved. Additionally, it should be noted, the Paterakis family picked up 10 years worth of EZ (Enterprise Zone) tax credits from the state. Adam Bednar With this distraction put to bed, the Paterakis family will continue to honor John Paterakis true testamentary wishes and his legacy of supporting Baltimore.. If deemed great by the head of the Baltimore Development Corp., the Legg Mason deal must be described as super great for the Los Angeles real estate conglomerate that is under contract to buy a portion of the high-rise building. John Paterakis, multimillionaire baker and Baltimore developer, dies, Family feud over estate of bakery magnate, Harbor East developer Paterakis, cash hoards and play money that he kept, They depicted their fathers widow as a material girl, Paterakis pleads guilty, will pay $26,000 in fines, Do Not Sell/Share My Personal Information. In the following six years until now, the citys PILOT agreement has (depending on your point of view) saved a prominent family $24 million or deprived the city now facing the layoff of hundreds of school teachers because of a looming $130 million budget deficit of the same amount. He pleaded guilty to violating state campaign finance law after paying in excess of state contribution limits for a poll for former Councilwoman Helen Holton in 2007. John Paterakis Sr., who died in October 2016 at age 87, was an iconic Baltimore businessman and political player. Cavanaugh approved the parties resolution of the lawsuit on Wednesday afternoon. ANALYSIS: The owners of a trophy high-rise devise a plan to flip the property and keep its 95% tax abatement, Above: The blue-chip, glass-clad Legg Mason Building at Harbor East. The Brew has learned that John Paterakis Sr., Baltimores billionaire bakery mogul, real estate developer and political powerbroker, died today at Johns Hopkins Hospital. This category only includes cookies that ensures basic functionalities and security features of the website. There is the Paterakis who was awash in cash, stashing millions of dollars in safes and "play money" accounts that he used for gambling or buying expensive gifts. John Paterakis Sr., who died in October 2016 at age 87, was an iconic Baltimore businessman and political player. Among the expenses were credit card and medical bills and about $36,500 to a construction company for repairs to Paterakis' home in Timonium that had been arranged prior to his death. An example of data being processed may be a unique identifier stored in a cookie. Now, some of that's becoming public. When questioned yesterday by The Brew, Cole explained the citys reasoning this way: When it [the PILOT] was approved, it was never anticipated that the city would see any real profit-sharing. Weiner, defending his client from those accusations said at the time: If John Paterakis Sr., had been mistreated by his wife, where were his adult children while that supposedly took place? But there is usually great motivation to handle any disputes without going to court, he said, both to keep from airing any dirty laundry and to preserve as much wealth as possible from going through an expensive legal battle. ", Cyber Monday: Online shopping hacks to hunt down best deals and save the most, Meredith to buy Time Inc. for upward of $2.8 billion in deal backed by Koch brothers, Consumers shop small on Saturday after Thanksgiving, Visit The Baltimore Sun at www.baltimoresun.com. (Karen Jackson/Baltimore Sun). This website uses cookies to improve your experience while you navigate through the website. Also in play is $570,000 that John Paterakis daughters, Smith and Karen Phillipou, took from his safe deposit boxes while he was hospitalized in December 2013. Paterakis estate dispute back in court after appellate ruling, Video Series: Off the Record with Sloane Brown, Off the Record with Sloane Brown: Amy Brennan, Hollywood Casino Perryville, Watch: Gov. He turned the family business, H&S Bakery Inc., into one of the city's most. The trust is not public. Jeffrey E. Nusinov, who represents Bill Paterakis and Smith, said Roula Paterakis suit, which initially sought a third of what she said was her husbands $1 billion fortune, has been chipped away over the years to almost nothing. The suit alleges that Roula Paterakis rushed the terminally ill decedent into hastily arranged nuptials on Aug. 2, 2015, not even inviting his children. But opting out of some of these cookies may have an effect on your browsing experience. Nusinov said Roula Paterakis was not left empty-handed: her husband left her $250,000, a retirement account worth more than $650,000 and the home they shared in Baltimore County. Subscribers to The Daily Record can access the digital edition archive. She has filed a claim to one-third of that estate as allowed by statute. "A billionaire could die with much of his income sheltered.". Additionally, they defended the trusts that Roula Paterakis claimed were shams as above board and part of their fathers estate planning. All the accusations were proven to be nothing more than a failed attempt to pressure one of the most respected families in Baltimore.. Nowadays, people have started supporting his work and other things. He was referred to as the bread man by some politicians, a reference to his bakery and ability to provide campaign contributions. Compared to 2021 standards, respondents to the 2020 survey described the threshold for wealth as being a net worth of $2.6 million. The Paterakis siblings fired back in a suit of their own. By: Steve Lash for help. Also in Winnetka, and in spot No. Mayor Pugh ratified the deal without comment yesterday. Both depict screaming, animosity-fueled fights and both make claims that the other side took advantage of the family patriarch when he was in a weakened state toward the end of his life. She was not able to get beyond the fact that her allegations were frivolous, he said of Roula Paterakis. These cookies do not store any personal information. In December, the company told the BBJ that it plans to retain an active and significant ownership and management interests in this trophy asset.. The blue-chip, glass-clad Legg Mason Building at Harbor East. By some estimates, Paterakis owned assets valued at more than $1 billion. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. 2017 - 2023 Tobin OConnor Concino P.C. A legal claim by the widow of H&S Bakery owner John Paterakis Sr. that his adult children from a prior marriage conspired to prevent her from inheriting $20 million has settled for much less and for no more than the children said their stepmother was entitled to under her agreement with their father. Roula Paterakis wants the court to see her as a victim, but as our filing today shows, she was no victim, said Jeffrey E. Nusinov, who represents William Paterakis and Venice Smith. By clicking Accept, you consent to the use of ALL the cookies. His widows attorney, Arnold M. Weiner, would not say why she decided to drop her claims to more of her husbands assets. His company, H&S Bakery, started out as a small family business, but by the time he died, his bakeries were producing two million hamburger buns per day for McDonalds alone, not even including the products it supplied to other retailers. Continue with Recommended Cookies, Your email address will not be published. "Speaking from my own practice, the vast majority of elective share cases involve an underlying dispute between the surviving spouse and children from an earlier marriage," he said. John Paterakis Sr. died Oct. 16 at age 87. Documents filed in Orphans' Court show trouble brewing between Roula Paterakis and her husband's children by his first wife over the past year. "There must be some basis for personal representatives to take the position it's not the property of the estate.". This law firm website is managed by MileMark Media. The agreement and judgment was a complete victory, said Jeffrey E. Nusinov, who represented William J. Paterakis and Venice Paterakis Smith, the siblings who were named by their father as personal representatives of his estate. He was referred to as the bread man by some politicians, a reference to his bakery and ability to provide campaign contributions. As John Paterakis health began failing, the suit charges, she became concerned not with his well-being but with ensuring that she got as much of his fortune as possible. There was no evidence offered of play money bank accounts, the judgment said, and Roula Paterakis dropped that allegation. Necessary cookies are absolutely essential for the website to function properly. Paterakis died on October 16 at age 87. During his last days, she asked for $5 million, but he died before his estate plans could be altered, the suit said. (The Daily Record/File Photo). The suit over the millions left behind by the H&S Bakery patriarch, filed in 2017, one year after his death, exposed a bitter rift between his second wife, Roula Paterakis, and the six grown children from his first marriage. 1. Necessary cookies are absolutely essential for the website to function properly. Despite his low-key style and casual attire, he was the indisputable patriarch of Baltimores Greektown community and its suburban enclaves in Harford County and was a major benefactor to many charities and the Greek Orthodox church. In her lawsuit, Roula Paterakis said her husband kept millions of dollars in cash in safes and bank accounts that should be in the estate, and that William Paterakis and Venice Smith had filed false tax returns that didnt account for such assets. At the hurried ceremony, according to the suit, John Paterakis looked extremely sad.. An initial inventory of Paterakis' estate was filed on February 27, saying it was worth $116,868.56. The appeals court also found Cavanaugh erred when she dismissed a claim for declaratory relief without declaring the rights of the parties. 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