On Thursday afternoon, lawyers representing Bridgeport and Stratford will try to persuade a federal judge to throw out a rushed “bad faith” bankruptcy filing by leadership of the troubled Success Village co-op whose roughly 2,000 residents have lacked heat and hot water with the cold weather season on the horizon.
The filing took place two weeks ago as Superior Court Judge Dale Radcliffe was on the verge of ruling on a request to appoint a receiver to untangle the chaos created by the rogue management the past two years and steady the ship. The federal filing put a halt to the state proceedings.
Wednesday morning, Bridgeport’s Chief Administrative Officer Tom Gaudett, one of the driving forces behind pushing for a receiver to straighten out the mess and resolve the heating issues, was on the Melissa In The Morning Show on WICC, see link to interview here, to rebut the lies spread by current leadership and their lawyers including Dennis Bradley who was fired by voters two years ago while under federal indictment for allegedly falsifying paperwork and spending money illegally to receive nearly $200,000 under Connecticut’s public financing program for elective office. A trial is scheduled for next May.
Bradley trumpeted weeks ago finances at the co-op were peachy, then did the bankruptcy dipsey doodle. The co-op owes millions of dollars in property taxes and utility costs. Now, Success board director Ty Bird wants to charge residents an additional $300 per month on top of the $560 paid in common charges to provide heat and hot water. It’s management’s responsibility to pay taxes and utilities from the common charges on behalf of residents.
Bird has added another lawyer to the mix. Norwalk attorney Mark Kratter was hired Wednesday afternoon by Bird to handle the bankruptcy case.
Meanwhile, according to multiple sources, local, state and federal law enforcement officials are undertaking a review to determine if the money spigot was illegally opened.
Court testimony revealed the co-op had about $1.9 million in reserves two years ago – now there is none – and since that time nearly $1 million spent on legal fees and $800,000 in management and consulting fees.
In addition numerous cash withdrawals were made at various banks. Who grabbed the cash and where did that end up?
Too soon to say where the money trail leads but the financial fraud division of the Justice Department will determine if this is a case of corruption or fiscal incompetence, or perhaps both.
Meantime residents await short and long term solutions: consistent heat and hot water for the cold weather season and plans for a modernized boiler system so this never happens again.
Looks to me like a suite of cells at the Danbury white-collar lock-up will need to be reserved for an extended period to accommodate the Success Village BOD hierarchy and some of their hired legal and managerial hands (all birds of a feather) — after the facts are sniffed out and prosecuted and just-desserts determined….
Here come The Judge!
By By Birdie!!!
OPEN, ACCOUNTABLE, TRANSPARENT, and HONEST values must be observed especially where self-governance is practiced. There may be ByLaws, but if they are not practiced or followed, good or trusted administration becomes in doubt. Where has been municipal oversight in this case? Perhaps on the shelf, in the form of a Fair Housing Commission (not for renters or owners leasing residences) but for owners and the community at large to wrestle with multiple issues that may have paths to Public Safety issues, Health Department concerns, Building Department expertise, and income taxes paid to the City when a Success Village resident pays common charges monthly but management fails to paid to the City of Bridgeport (or likely Stratford) for two years.
In governance activities, who does the oversight? Oversight can provide an early warning that things are veering off the track or out of control and have lesser ultimate expense or worry about resident rights and financial equity ownership. Where there are no public meetings, with agendas, minutes, and right to speak, for two years; or a failure to hold elections per the rules; and even a fiscal question as to lack of balance sheet records, we are likely looking at a wreck ahead. Where are the Mayoral appointments to the Fair Housing Authority (FHA) so that fellow neighbors can be available monthly to share their fairness, life experience, and good listening to property owners of Condos, Co-Ops, and/or other macro-residence issues like information on ‘homelessness’.
The FHA is currently, only a ‘concept’, but because it is included in the Charter, it requires sufficient appointments to become a ‘living governance plan’ in Bridgeport. For 20 years it was ignored by Mayors as to the appointment of commissioners who can reach a quorum. Two years ago the ‘concept’ was resurrected by the City Council. What do Mayor Ganim or his employed advisors or consultants have to say as they recognize that the City itself is financially responsible for the residency of the folks from over 700 Bridgeport units until full health safety is declared. What is that expense? Will the “rainy day fund” celebrated on OIB this week by Wall Street have to be raided or merely depleted for this unaddressed commitment, a responsibility to our neighbors as residents, possible facing extreme conditions? Time will tell.