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. She alleges that her husband's cash, assets and "controlling interest in the H&S Bakery enterprise" are worth more than $1 billion and should be part of his estate. His rise to prominence has resulted from his/her dedication to hard work. Subscribers to The Daily Record can access the digital edition archive. Washington, District of Columbia 20015. Please read our moderation policy before leaving a comment. ", 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. He paid a fine of $26,000 and was briefly barred from contributing to political campaigns, but came back strong during the current election cycle. What is ESG investing and why do some hate it so much? The siblings suit says that John Paterakis had some bakery business cash delivered to the house and some or all of these funds may not have been properly reported for tax purposes. But it goes on to allege that Roula Paterakis routinely spent and benefited from this cash and was unjustly enriched by amounts that should have been paid in taxes.. Daily Record Business Writer The Paterakis family is determined to resist her effort and to establish the truth about what occurred and to vindicate the family's good name., Do Not Sell/Share My Personal Information. Tagged with: estates and trusts H&S Bakery John Paterakis. (1213people.com). But his political largesse landed him in hot water in 2010. Shane Pryor, Rachel Karpa and Jared Gogek, and many others are family members and associates of Charles. "If there is explicit animosity already, that's a larger red flag. Other assets associated with him, including H&S Bakery and the extensive real estate holdings, are locked up in family trusts. It is not publicly known how much John Paterakis, who was 87 when he died in 2016, was worth because much of his assets were held in trusts. John Paterakis Sr., who died in 2016 at age 87, was an iconic Baltimore businessman and political player. Here was a power player who had gotten what he wanted from City Hall for decades. For the first time were getting a very large lump-sum payment on an old PILOT that had profit-sharing.. We are pleased the Court of Special Appeals affirmed the Circuit Courts dismissal of the second wifes attempt to seize a portion of John Paterakis Sr.s legacy and the familys business. (The Daily Record/File Photo). The lawsuitalso accused Roula Paterakis of berating and belittling John Paterakis Sr. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. content for publishing on our website. Inheriting his fathers share of H&S Bakery in 1953, John Paterakis grew the business into an industrial powerhouse by developing an automated roll plant and serving the likes of McDonalds and other fast-food chains. Roula Paterakis Walks Away From Legal Dispute With Small Fraction of Late Husbands Estate. The battle over the Paterakis fortune represents the worst-case scenario as far as probate disputes, but even a dispute over a smaller estate can be stressful. Wednesdays consent judgment dispensed with Roula Paterakis claims: Roula Paterakis and the Paterakis siblings did not respond to requests made through their attorneys for comment. Get all the top news and sports from the baltimoresun.com. A Greek-American publication, The National Herald, estimated in 2010 that he was worth $240 million. By clicking Accept, you consent to the use of ALL the cookies. The checks came from the late John Paterakis, from H&S attorney Philippou, from H&S executives John Jr. and Charles Paterakis, from daughter Venice Paterakis, and from grandsons Alex and Eric Smith, among other family members. "The Paterakis family is determined to resist her effort, to establish the truth about what occurred and to vindicate the family's good name." . 2017 - 2023 Tobin OConnor Concino P.C. Continue with Recommended Cookies, Your email address will not be published. Almost everyone in Maryland has eaten a piece of bread or a sandwich bun that came from a bakery belonging to John Paterakis. In September 2014, for example, about $23 million of assets were transferred into a newly created irrevocable trust, the lawsuit said. Net worth: $24.5 billion Source of wealth: Hearst Corporation About 67 family members share the fortune that William Randolph Hearst created when he took over the San Francisco Examiner in the . Paterakis widow ends multimillion-dollar lawsuit against his children, Video Series: Off the Record with Sloane Brown, YOUR CALIFORNIA PRIVACY RIGHTS/PRIVACY POLICY, Marris Hoffee and Jamie Ferguson | Mid-Shore Pro Bono, Sheila McDonald, Marciel Rojas Rosario, Derek L. Simmons, Chick Zoll and Michael Latimer | Board of Child Care. Eventually, he invested in real estate development, such as Harbor East, which reshaped the citys waterfront skyline. Tax breaks for developers economic development or corporate welfare? 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. There was no evidence offered of play money bank accounts, the judgment said, and Roula Paterakis dropped that allegation. Headquartered in Baltimore, Maryland, we operate as an integrated network of 10 bakeries and 30 distribution centers located strategically across the Eastern seaboard, not including our strategic partners which expands our reach even further. John Paterakis, bakery magnate and Harbor East developer, and his wife, Roula Paterakis, at an event in 2015. "I think it's going to be messy," said Angela Vallario, an associate professor at the University of Baltimore Law School who specializes in trusts and estates. 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. She filed a lawsuit in 2017, making public a feud within the family of a patriarch who for all his wealth and influence as a major political donor had lived a largely private life. We express no view as to whether it does or does not, the special appeals court opinion said. 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.. The way to reach here was not easy at all. 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. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. (See below the list for the full methodology.) Paterakis who grew his familys small, rowhouse-based bakery into a behemoth that supplies the likes of McDonalds and transformed a largely industrial tract of land into glitzy Harbor East died the following month. His children also accused Roula Paterakis of berating and belittling John Paterakis Sr. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. 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. (The Daily Record/File Photo). The suit describes the magnate as dependent on round-the-clock nursing care after 2013. This website uses cookies to improve your experience while you navigate through the website. But opting out of some of these cookies may have an effect on your browsing experience. Paterakis died on October 16 at age 87. Stephen's personal network of family, friends, associates & neighbors include Antonia Paterakis, John Paterakis, Victoria Mclaughlin, Annette Paterakis and Antoinette Paterakis. Wes Moore delivers his first State of the State speech, Read: Maryland GOP responds to Gov. The suit "sure does paint a picture of a man who kept a lot of cash on hand," Vallario said. In the final month of her husbands life, Roula Paterakis sought to increase her inheritance, the suit alleges. Paterakis, who turned a small rowhouse bakery into a multi-million-dollar conglomerate and became an influential campaign contributor known as the "bread man" to local and state politicians, had lived a life in which personal and financial details were kept mostly private. Mayor Pugh ratified the deal without comment yesterday. She was not able to get beyond the fact that her allegations were frivolous, he said of Roula Paterakis. It is mandatory to procure user consent prior to running these cookies on your website. News of the bread mans death is making the rounds in political circles, Above: John Paterakis in an undated photograph at a family reception. Arnold Weiner, a lawyer for Roula Paterakis, said his client was disappointed in the ruling and reviewingher options as to her next steps. Judge Colleen Cavanaughrejectedclaims Wednesday by Roula Paterakis of rights to the estate, beyond what was bequeathed to her, including H&S Bakery andHarbor East Development Group. Subscribers to Maryland Family Law Update can access the digital edition archive. On Oct. 11, she sought another three-month extension, citing a dispute over the estate. If the Circuit Court reassessed and found Roula Paterakis was indeed entitled to those funds her share would amount to about 30% of the total after-estate expenses, such as legal fees. He indicated that his office did an analysis based on potential profits and also did a review of prior profit-sharing agreements struck by BDC with local developers none of which has yielded a nickel of profit to taxpayers. His actual net worth at the time of his death was unclear, but Roula Paterakis claimed she was supposed to inherit one-third of it. 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. From his death in 2016 until now, his widow was involved in a legal dispute with the personal representatives of his estate, namely one of his sons and one of his daughters from his first marriage. An example of data being processed may be a unique identifier stored in a cookie. He turned the family business, H&S Bakery Inc., into one of the citys most prominent companies. 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. The opinion cited a ruling this June by the Maryland Court of Appeals in another case, which recognized interference as a wrongful act. After yesterdays Board of Estimates meeting, in which Mayor Catherine Pugh accepted $1.5 million from the Paterakis family in order to clear the way for the sale of their Legg Mason Tower, Baltimores chief development officer, William H. Cole, said: Its a great deal for the city. The suit alleges that the following summer, he discussed divorcing her with an attorney, but the attorney concluded that John Paterakis was too weak to go through such a battle. But the evidence was weak that Mosby accepted money from controlled donors, or people doing business with the city, Judge Lawrence Fletcher-Hill decides. Subscribers to The Daily Record can access the digital edition archive. 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. The Met Life stock was sold for a more than $2,700 profit, for example, and there were six state income tax refunds from 2012 to 2015,that totaled almost $36,000. Please read our moderation policy before leaving a comment. He donated the $6,000 maximum to the 2016 mayoral campaigns of both former Mayor Sheila Dixon and Mayor Catherine Pugh. It set off a series of charges and countercharges of scandalous behavior of the children raiding cash from their fathers safe deposit boxes as he lay gravely ill in a hospital, of the second wife spending lavishly like a material girl and taking advantage of his frailty late in life until it was dismissed in June 2018. The family denied the allegations and called Roula Paterakis lawsuit desperate., This law suit (sic) appears to be no more than a desperate attempt by Roula to obtain more money than she was left in JPs Will, William Paterakis, John Paterakis Sr. son and chairman of H&S Bakery, wrote in a signed letter to employees in November 2017. An initial inventory of Paterakis' estate was filed on February 27, saying it was worth $116,868.56. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. This website uses cookies to improve your experience while you navigate through the website. Over a long career, the bread man created one of the biggest bakery businesses in the U.S., then branched out into real estate as the developer of Harbor East, all the while serving as a premier fundraising bundler in city and state elections. He bought a largely industrial swath of land on the east side of the Inner Harbor, close to the H&S Bakery in Fells Point, and developed it into the glitzy Harbor East neighborhood. Her suit described scenes of turmoil before Paterakis death and afterward, of fights breaking out in Harbor East restaurants and the siblings helping themselves to their fathers cash hoards and so-called play money. The siblings fired back, characterizing her as a spendthrift who once charged two Hermes Birkin handbags to her hotel room in Las Vegas and pressured him into a hasty wedding. Developer. Additionally, they defended the trusts that Roula Paterakis claimed were shams as above board and part of their fathers estate planning. The case isPaterakis vs Paterakis, et al.,03C18001742. After supporting Dixon during the mayoral primary (which she lost to Pugh), the family switched allegiance and funneled $58,000 to Pugh mostly in $6,000 chunks, the legal limit, and most of it coming on a single day, July 22, 2016. We will see if Roula continues to pursue the crumbs.. While John Paterakis, for all his business and civic prominence in Baltimore, lived a largely private life, the suits filed by his widow and now his children since his death expose much of what they claim was happening behind the scenes. All the accusations of theft and fraud, which were brought in a failed attempt to pressure one of the most respected families in Baltimore, have been completely dismissed, said Nusinov, of Nusinov Smith LLPin Baltimore. Thus, H&Ss offer of $1.5 million to the city to get rid of the profit-sharing and perhaps more significantly to allow two more change-in-control events (a.k.a. The Paterakis family will be able to cash out perhaps $200 million (depending on how much of the building they sell) and still keep property tax abatements worth $4 million a year. His ascension to the ranks of the worlds wealthiest people is directly related to this success. We also use third-party cookies that help us analyze and understand how you use this website. (Fern Shen), Developer Paterakis orchestrates $130,000 in campaign contributions to Sheila Dixon. To purchase a reprint of this article, contact [emailprotected]. Subscribers to The Daily Record can access the digital edition archive. Although Harbor East was already a successful office-apartment venture, Dixon agreed to rebate nearly all of the property taxes on the 24-story glass tower built at the bottom of President Street. Weiner is with Rifkin Weiner Livingston LLC in Baltimore. Their expressed concerns about Johns welfare manifest themselves only after he is dead and when they are fighting over his assets, Weiner said. The Herald said that made. (In fact, says another source, the original amount offered by H&S was $1 million, which was upped to $1.5 million to gain Mayor Pughs support.). In alleging that John Paterakis was worth $1 billion, his widow cites a figure that far outstrips the last public estimate of his fortune. By submitting your email to receive this newsletter, you agree to our, the children raiding cash from their fathers safe deposit boxes as he lay gravely ill, suit described scenes of turmoil before Paterakis death, spendthrift who once charged two Hermes Birkin handbags, Do Not Sell/Share My Personal Information. "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. Save my name, email, and website in this browser for the next time I comment. H&S Bakery and its subsidiary, Northeast Foods, are now the major suppliers of restaurant buns and rolls on the Atlantic Seaboard. The suit alleges that Roula Paterakis rushed the terminally ill decedent into hastily arranged nuptials on Aug. 2, 2015, not even inviting his children. The $1.5 million payment not only smooths the way for the propertys sale to CRBE, but will benefit H&S for years to come. The trust is not public. flips of the buildings ownership) during the seven years remaining of the PILOT. 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. 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. The blue-chip, glass-clad Legg Mason Building at Harbor East. Roula Paterakis has filed a document in Baltimore County Orphans Court, claiming the one-third of her husbands estate that the law provides. Necessary cookies are absolutely essential for the website to function properly. With this distraction put to bed, the Paterakis family will continue to honor John Paterakis true testamentary wishes and his legacy of supporting Baltimore.. Roula Paterakis argued that by law she was entitled to a third of her husbands estate, and that estate should include assets held in trusts, as well as the cash hoards and play money that he kept in safes, safe deposit boxes and bank accounts, money that he freely spent on poker games, travel on private jets and gifts. 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