HomeMy WebLinkAbout01-13-14 RECORDED OFFICE OF
REGISTER OF V1ILLS
i9 "N 13 9il 8 20
Ronald L. Finck, Esquire CLERK OF
Sup. Ct. Id. No. 89985 ORPHANS' COURT
Kevin J. Hayes, Esquire CUMBERLAND CO., Pit
Sup. Ct. Id. No. 314338
METTE, EVANS & WOODSIDE
3401 North Front Street
P.O. Box 5950
Harrisburg, PA 17110-0959
Phone: (717) 232-5000
Fax: (717) 236-1816
kjhayes @mette.com
IN RE: IN THE COURT OF COMMON PLEAS OF
ESTATE OF VASILIKI MALLIOS, CUMBERLAND COUNTY, PENNSYLVANIA
Deceased ORPHANS' COURT DIVISION
METRO BANK, f/k/a COMMERCE
BANK/HARRISBURG, N.A., NO. 21-10-0790
Objector
V.
CONSTANTINOS J. MALLIOS and
NICKOLAS J. MALLIOS,
Accountants
OBJECTIONS TO ACCOUNTING AND PETITION FOR ADJUDICATION
The Objector, Metro Bank f/k/a Commerce Bank("Metro") by and through its attorneys,
Mette, Evans & Woodside, files these Objections to the First and Partial Account of Constantino
J. Mallios ("Accountant Constantinos':) and Nickolas J. Mallios ("Accountant Nikolas," and
together with Accountant Constantinos, "Accountants"), as follows:
1. PARTIES
1. The Decedent, Vasiliki Mallios ("Decedent"), died on July 27, 2010, a resident of
Cumberland County, Pennsylvania.
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2. Metro is a Pennsylvania financial institution organized and existing under the
laws of the Commonwealth of Pennsylvania with a principal place of business at 3801 Paxton
Street, Harrisburg, Pennsylvania 17111.
3. Accountant Constantinos is an adult individual residing at 715 Sandbank Road,
Mt. Holly Springs, PA 17065.
4. Accountant Nickolas is an adult individual residing at 431 Meeting House Road,
Carlisle, PA 17013.
5. The Accountants are the natural sons of the Decedent and are the sole residuary
beneficiaries of the Decedent's Estate.
6. The Decedent's Will dated May 22, 2009 was admitted to Probate on August 4,
2010 (the "Will"), and letters testamentary were granted to the Accountants.
II. BACKGROUND
7. During her lifetime, Decedent acquired real property located at 224 Heisers Lane,
Carlisle, PA 17015 (the "Heisers Lane Property").
8. On September 17, 2002, Metro made a commercial loan to Accountant
Constantinos, in his individual capacity, in the principal amount of$400,000.00 (the "$400k
Loan"),
9. The $400k Loan is evidenced by a Promissory Note (the "$400k Note"). A true
and correct copy of the $400k Note is attached to Metro's Petition for Accounting as Exhibit `B"
and is made a part hereof by reference.
10. The Decedent guaranteed Accountant Constantinos' $400k Loan pursuant to the
terms of a Commercial Guaranty dated September 17, 2002 (the "$400k Guaranty"),
guaranteeing to Metro repayment of the $400k Loan, among other things. A true and correct
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copy of the Decedent's $400k Guaranty is attached to Metro's Petition for Accounting as Exhibit
"C" and made a part hereof by reference.
11. On December 2, 2004, the Decedent, as mortgagor, executed a mortgage in favor
of Metro, as mortgagee, on the Heisers Lane Property.
12. The December 2, 2004 mortgage was given as additional collateral for the $400k
Loan and was recorded with the Cumberland County Recorder of Deeds on February 18, 2005 at
Book 1897 Page 3075 (the "Third Lien Mortgage"). A true and correct copy of the Third Lien
Mortgage is attached to Metro's Petition for Accounting as Exhibit "D" and made a part hereof
by reference.
13. Until the events described herein, the Third Lien Mortgage was third in lien
priority to: (1) a first lien mortgage granted by Decedent in favor ofNationstar Bank in the
original principal amount of$78,000.00, recorded with the Cumberland County Recorder of
Deeds on December 10, 2004 at Book 1890 Page 4548; and (2) a second lien mortgage granted
by Decedent in favor of M&T.Trust Company in the original principal amount of$100,000.00,
recorded with the Cumberland County Recorder of Deeds on February 9, 2005 at Book 1896
Page 3489.
14. On July 10, 2003, Metro made a second commercial loan to Accountant
Constantinos, in his individual capacity, in the principal amount of$50,000.00 (the "$50k
Loan").
15. The $50k Loan is evidenced by a Promissory Note dated July 10, 2003 (the "$50k
Note"). A true and correct copy of the $50k Note is attached to Metro's Petition for Accounting
as Exhibit "E" and made a part hereof by reference.
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16. The Decedent also guaranteed Accountant Constantinos' $50k Loan pursuant to
the terms of a Commercial Guaranty dated July 10, 2003 (the "$50k Guaranty"), guaranteeing to
Metro repayment of the $50k Loan, among other things. A true and correct copy of the
Decedent's $50k Guaranty is attached to Metro's Petition for Accounting as Exhibit "F" and
made a part hereof by reference.
17. On December 2, 2004, the Decedent, as mortgagor, executed another mortgage in
favor of Metro, as mortgagee, on the Heisers Lane Property.
18. The December 2, 2004 mortgage was given as additional collateral for
Accountant Constantinos' $50k Loan and constitutes a fourth lien mortgage on the Heisers Lane
Property (the "Fourth Lien Mortgage").
19. The Fourth Lien Mortgage was recorded with the Cumberland County Recorder
of Deeds on February 18, 2005 at Book 1897 Page 3085. A true and correct copy of the Fourth
Lien Mortgage is attached to Metro's Petition for Accounting as Exhibit"G" and made a part
hereof by reference.
20. Among other things, each of the $400k Guaranty and $50k Guaranty
(collectively, "Guarantees"), executed by the Decedent guaranteeing Accountant Constantinos'
debts to Metro, contains the following provisions:
(a) "The indebtedness guaranteed by this Guaranty includes any and all of
[Accountant Constantinos'] indebtedness to [Metro] and is used in the most
comprehensive sense and means and includes any and all of[Accountant
Constantinos'] liabilities, obligations, and debts to [Metro], now existing or
hereinafter incurred or created..."
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(b) "This Guaranty shall bind [Decedent's] estate as to Indebtedness created both
before and after [Decedent's] death or incapacity, regardless of[Metro's]
actual notice of[Decedent's] death."
(c) "This Guaranty is binding on [Decedent] and [Decedent's] heirs, successors,
and assigns so long as any of the guaranteed Indebtedness remains unpaid. . ."
(d) "(E) [Decedent] has not, and will not, without the prior written consent of
[Metro], sell, lease, assign, encumber, hypothecate, transfer, or otherwise
dispose of all or substantially all of[Decedent's] assets, or any interest
therein."
21. The Decedent's death constitutes an "Event of Default," as defined in both the
$400k Note and the $50k Note.
22. As of January 10, 2014, the amount due on the $400k Loan is $241,020.17, which
includes a principal balance of$237,403.85, accrued interest in the amount of$2,412.10, and late
fees and other charges in the amount of$1,204.22. Additional interest, late fees, and attorneys'
fees continue to accrue.
23. As of January 10, 2014, the amount due on the $50k Loan is $21,494.29, which
includes a principal balance of$20,973.04, accrued interest in the amount of$290.69, and late
fees and other charges in the amount of$230.56. Additional interest, late fees, and attorneys'
fees continue to accrue.
24. At all times relevant hereto, Accountants had actual and/or constructive
knowledge of Decedent's status as a guarantor of the $400k Loan and the $50k Loan,the
Decedent's Estate's continuing obligations under the Guarantees, and the existence of the Third
and Fourth Lien Mortgages on the Heisers Lane Property.
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III. PROCEDURAL BACKGROUND
25. On August 9, 2013, Metro Bank filed a Petition for Accounting ("Petition for
Accounting") and a Petition to Enjoin Distributions of Estate Assets ("Petition to Enjoin").
26. On August 28, 2013, in response to Metro's Petition to Enjoin, this Court issued
an Order Enjoining Distributions and Payments, ordering the Accountants to cease making
distributions of estate assets without prior authorization from the Court unless the distributions
are "reasonably deemed to be due and absolutely necessary to preserve estate assets."
27. On August 28, 2013, this Court issued a Rule to Show Cause why Metro's
Petition for Accounting should not be granted.
28. The Accountants did not file a response to the Rule to Show Cause, and on
October 4, 2013, Metro filed a Motion to Make Rule Absolute.
29. This Court granted Metro's Motion to Make Rule Absolute on October 10, 2013,
and ordered Accountants to file an Accounting on or before November 15, 2013.
30. On November 14, 2013, the Accountants filed a First and Partial Account(the
"Account") of the Accountants' activities as Co-Executors of the Decedent's Estate.
31. On November 14, 2013, the Accountants also filed a Petition for
Adjudication/Statement of Proposed Distribution Pursuant to Pa. O.C. Rule 6.9(the "Petition").
32. The Account is listed for audit on January 14, 2014.
IV. OBJECTIONS TO ACCOUNT AND PETITION
33. Metro incorporates the averments set forth in the paragraphs above into each of its
objections below.
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General Objections
34. The Objectors object to the Accountants' failure to comply with Rule 6.1(a) of the
Pennsylvania Orphans' Court Rules which requires the Accountants to identify:
(a) the dates of all receipts, disbursements, and distributions; and
(b) the persons to whom disbursements and distributions are made and the
purposes thereof.
35. Metro objects to the Accountants' failure to present information in a manner that
allows an interested party to follow the progress of the fiduciary's administration of assets during
the accounting period as required by the Principle II of the National Fiduciary Accounting
Standards Project(hereinafter "Fiduciary Accounting Principles") which is appended to Rule 6
of the Pennsylvania Orphans' Court Rules of Practice and made applicable to this proceeding by
Pa.O.C. Rule 6.1(g).
36. Metro objects to the Accountants' failure to comply with Rule 6.1(b) of the
Pennsylvania Orphans' Court Rules by separately setting forth receipts, gains or losses on sales
or other dispositions, investments made, and changes in holdings.
37. Metro objects to the Accountants' failure to separately itemize assets held by the
Accountant on the closing date of the Account in violation of Rule 6.1(c) of the Pennsylvania
Orphans' Court Rules.
38. Metro objects to the Accountants' failure to contain sufficient information to put
the interested parties on notice as to all significant transactions affecting administration during
the accounting period as required by Fiduciary Accounting Principle III made applicable by Pa.
O. C. Rule 6.1(g).
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39. Metro objects to the Accountants' failure to include both carrying values -
representing the value of assets at acquisition by the fiduciary - and current values at the
beginning and end of the accounting period as required by Fiduciary Accounting Principle IV
made applicable by Pa. O. C. Rule 6.1(g).
40. Metro objects to the Accountants' failure to separately show, in the same
schedule, all gains and losses as required by Fiduciary Accounting Principle V made applicable
by Pa. O. C. Rule 6.1(g).
41. Metro objects to the Accountants' failure to show significant transactions that do
not affect the amount for which the fiduciary is accountable as required by Fiduciary Accounting
Principle VI made applicable by Pa. O. C. Rule 6.1(g).
42. Metro objects to the Accountants' failure to provide sufficient documentation to
substantiate the claims and expenses in the Account, including but not limited to receipts,
checks, and statements.
43. Metro objects to any loss incurred by the Estate as a result of the Accountants'
actions or inactions in administering the Estate.
44. Metro objects to any other wrongful act or failure to act of Accountants which has
caused a loss to the Estate that is unknown at this time but which may be discovered in the
future.
45. Metro objects to the Accountants' unreasonable delay in administering the Estate
and distributing the proceeds to creditors of the Estate.
Specific Obiection One- Transfer of Heisers Lane Property
46. On November 6, 2011, Accountant Constantinos, in his capacity as Co-executor
of the Estate, entered into an Agreement of Sale (the "Agreement of Sale") for the sale of the
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Heisers Lane Property to Devoe W. Green and Barbara L. Messner(collectively, "Buyers"). A
true and correct copy of the Agreement of Sale is attached to Metro's Petition for Accounting as
Exhibit"H" and made a part hereof by reference.
47. The November 6, 2011 Agreement of Sale states that the Buyers would pay a
deposit of$25,000, would begin making lease payments on January 1, 2012, and that closing
would occur when the Buyers have sold their previous residence, but no later than December 31,
2012.
48. On November 14, 2011, Buyers made a $5,000.00 payment to the Estate, and on
December 14, 2011, Buyers made a$20,000.00 payment to the Estate as required by the
Agreement of Sale (collectively, the "25k Deposit").
49. On October 22, 2012, Buyers and Accountant Nickolas, in his capacity as a Co-
executor of the Estate, entered into an Addendum to Agreement of Sale, extending the deadline
for the Buyers' sale of their previous residence to December 22, 2013. A true and correct copy
of the Addendum to the Agreement of Sale is attached to Metro's Petition for Accounting as
Exhibit "I" and made a part hereof by reference.
50. Despite having entered into the November 6, 2011 Agreement of Sale with the
Buyers, and without satisfying the indebtedness to Metro secured, in part, by the Heisers Lane
Property, on January 25, 2013, the Accountants deeded the Heisers Lane Property from the
Estate to themselves in their individual capacities by way of an Indenture, recorded with the
Cumberland County Recorder of Deeds on February 5, 2013 as Instrument Number 201304016
(the "Indenture"). A true and correct copy of the Indenture is attached to Metro's Petition for
Accounting as Exhibit"J" and made a part hereof by reference.
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51. The recited consideration for the transfer of the Heisers Lane Property from the
Estate to the Accountants, in their individual capacities, was $1.00.
52. Section 3356 of the PEF Code provides: "The personal representative, in his
individual capacity, may bid for, purchase, take a mortgage on, lease, or take by exchange, real
or personal property belonging to the estate, subject, however, to the approval of the court . . . ."
20 Pa.C.S. § 3356 (emphasis added).
53. It is believed and therefore averred that the Accountants failed to seek prior
judicial approval before deeding the Heisers Lane Property to themselves, in their individual
capacities.
54. The foregoing transfer is not represented on the Account, and the Heisers Lane
Property is listed as an asset of the Estate.
55. Metro objects to the Accountants, transfer of the Heisers Lane Property belonging
to the Estate to themselves individually for de minimis consideration, in violation of 20 Pa.C.S. §
3356.
56. Metro further objects to the distribution of Estate property to the Estate's
beneficiaries before satisfaction of the Estate's creditors, including Metro.
Specific Obiection Two—Payments to Junior/Unsecured Creditors
57. Accountants and Buyers entered into an Agreement of Sale Release and
Distribution of Deposit Money on April 30, 2013 and an Addendum to Agreement of Sale and
Agreement to Release Funds in May of 2013 (collectively referred to as the "Distribution
Agreements"). True and correct copies of the Distribution Agreements are attached to Metro's
Petition for Accounting as Exhibits "K" and "L" respectively and are made a part hereof by
reference.
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58. The Distribution Agreements provide for payment by Buyers of a non-refundable
deposit of$100,000.00 ("$100k Deposit" and, together with the $25k Deposit, the
"Downpayment")to the Estate, and further authorize the Accountants' distribution of this
Downpayment to creditors of the Estate as follows: Nationstar Bank, $43,672.00; Integrity Bank,
$27,500.00; and Susquehanna Bank $29,000.00.
59. The Accountants signed the Distribution Agreements on behalf of the Estate, even
though they had previously deeded the Heisers Lane Property to themselves individually,
apparently intending to use proceeds of the sale of the Heisers Lane Property to the Buyers to
satisfy the claims of other creditors of the Estate, but not including Metro.
60. It is believed and therefore averred that the Accountants made the payments
contemplated by the Distribution Agreements to Nationstar, Integrity, and Susquehanna Banks.
61. At the time the above-referenced payments were made, Susquehanna Bank held a
fifth lien mortgage on the Heisers Lane Property, recorded with the Cumberland County
Recorder of Deeds on February 8, 2013 as Instrument No. 201304375, and Integrity Bank had no
security interest in the Heisers Lane Property whatsoever.
62. Of the three creditors who are believed to have received payments from the
proceeds of the Downpayment, only Nationstar Bank held a security interest in the Heisers Lane
Property that was senior in priority to Metro's Third Lien Mortgage and Fourth Lien Mortgage
described herein.
63. As a result of using the entirety of the Downpayment for improvements to the
Heisers Lane Property and for the payments contemplated by the Distribution Agreements, it is
believed and therefore averred that the Accountants are unable to deliver clear title for the
Heisers Lane Property to the Buyers.
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64. It is further believed and therefore averred that the Accountants may have
jeopardized the Estate's ability to satisfy the Estate's debt obligations to Metro.
65. Additionally, a large portion of the Estate's assets were distributed by checks
made out directly to junior and unsecured creditors of the Estate, or by checks made out to the
Accountants themselves allegedly for "Cash to pay mortgages."
66. Metro objects to the Accountants' distribution of Estate assets to junior and
unsecured creditors of the Estate.
67. Metro further objects to the foregoing payments as being unnecessary and/or not
properly paid for the benefit of the Estate.
Specific Objection Three—Payments to Beneficiaries before Creditors
68. The Account states that Accountants made the following payments to
beneficiaries of the estate:
(a) Payment of$12,000 to beneficiary Joanna Mallios on Aug 10, 2010
(b) Payment of$20,000.00 to beneficiary, Vasiliki Mallios, on June 22, 2011
69. The payment of$20,000 to Vasiliki Mallios is evidenced by a Release, filed with
this court on October 16, 2012, that states that"[Vasiliki Mallios] agree[s] to indemnify and hold
harmless [Accountants] from and against any claims, liabilities, loss or expense . . . which the
Executor may incur as a result of the distribution to me."
70. Metro objects to Accountants payments to beneficiaries, in violation of existing
Pennsylvania law, which requires the payment of all creditors of a decedent's estate before
distribution of estate assets to beneficiaries.
71. Metro further objects to the foregoing payments as being unsubstantiated,
unnecessary, and/or not properly paid for the benefit of the Estate.
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Specific Obiection Four—Inheritance Tax Return
72. Counsel for the Estate filed the Estate's Inheritance Tax Return on behalf of the
Accountants on October 27, 2011. The Inheritance Tax Return has already been filed with the
Register of Wills and is made a part hereof by reference.
73. The Inheritance Tax Return lists the net value of the Estate at $130,549.74, with a
corresponding inheritance tax liability of$5,874.74.
74. The Inheritance Tax Return lists the value of any real estate held by the Decedent
at her date of death as $0.00, however, the Heisers Lane Property is listed in Schedule A, along
with the notation: "Suspended pending sale of real estate."
75. The Inheritance Tax Return further notes on Schedule D: "Mortgage on 224
Heisers Lane, suspended pending sale of real estate."
76. The Accountants previously listed the estimated value of all real property owned
by Decedent at $350,000.00 in their Petition for Probate and Grant of Letters, and had entered
into the Agreement of Sale with the Buyers for sale of the Heisers Lane Property for the
purchase price of$325,000.00.
77. On April 23, 2012, the Pennsylvania Department of Revenue (the "Department")
issued a Notice of Inheritance Tax, increasing the value of the real estate on the Inheritance Tax
Return to $526,875.00. The April 23, 2012 Notice of Inheritance Tax has already been filed with
this Court and is incorporated herein by reference.
78. The Department's $526,875.00 valuation is based on Cumberland County
property tax assessment records.
79. The Department's April 23, 2012 Notice incorrectly lists the value of debts and
mortgages on the Heisers Lane Property as a mere $459.00.
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80. The Department's April 23, 2012 Notice of Inheritance Tax imposed on the Estate
an inheritance tax in the total amount of$29,584.11.
81. It is believed, and therefore averred, that the Accountants never challenged or
appealed the Department's April 23, 2012 Notice of Inheritance Tax.
82. Accountants knew or should have known that there were mortgages on the
Heisers Lane Property at the time of the Decedent's death that reduced the net value of the
Heisers Lane Property for inheritance tax purposes and that these mortgages were not correctly
listed in the Department's April 23, 2012 Notice of Inheritance Tax or on the Accountants'
Inheritance Tax Return.
83. It is believed and therefore averred that the Accountants' failure to file an
accurate and complete Inheritance Tax Return and failure to appeal the Department's April 23,
2012 Notice of Inheritance Tax resulted in the unnecessary imposition of an additional
$24,440.99 in inheritance taxes due, plus continuing interest and penalties, to the detriment of the
Estate's creditors, including Metro.
84. It is further believed and therefore averred that the Accountants failed to make
payment on the inheritance taxes assessed, thereby subjecting the Estate to the assessment of
additional interest and penalties.
85. Metro objects to the Accountants' failure to properly file an accurate Inheritance
Tax Return, and failure to object or appeal to the Department's Notice of Inheritance Tax Return
which caused a loss of over$24,440.99 to the Estate.
Specific Objection Five—Discrepancies between Account and Inheritance Tax Return
86. Numerous inconsistencies exist between the Account and the Inheritance Tax
Return.
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87. By way of example, the various schedules attached to the Inheritance Tax Return
list: $90,232.74 in stocks and bonds (AT&T stock - $26,215; Frontier Communications stock -
$1,110; M&T Bank Corp. stock- $45,792; Verizon Communications stock - $17,115); and
$44,243 in cash, bank deposits, and miscellaneous personal property(M&T Bank Checking
Account $30,825; M&T Bank Savings Account $2,880; Janney Montgomery Scott money
market account $4,245).
88. Nevertheless, the Accountants have failed to include the M&T Bank Corp. and
Frontier Communications in their Account.
89, The M&T Bank Checking account is only shown as $10,000.00 on the Account,
as opposed to $30,825.00 on the Inheritance Tax Return, with no explanation of the apparent
discrepancy.
90. There is also a refund of$776.00 from Country Meadows listed as an asset on
Schedule E of the Inheritance Tax Return that is not included in the Account.
91. Likewise, there are assets listed on the Account that are not listed on the
Inheritance Tax Return, including an "Old Account" listed at a value of$2,593.00 and an interest
in Janney Montgomery Scott, LLC listed at a value of$50,000.00.
92. Metro objects to the Accountants' failure to properly account for estate assets,
including, but not limited to, the aforementioned examples that are evidenced by the numerous
discrepancies between the Account and the Inheritance Tax Return.
93. Without further detail regarding the assets held by Decedent at her death, Metro
is unable to determine if the Account is accurate and if all assets/income sources have been
properly accounted for by the Accountants.
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Specific Objection Six—Miscellaneous Unidentified Transactions
94. The Account lists several transactions in which checks were made, but which do
not list a purpose and/or a recipient, including:
(a) $410.00 on May 30, 2011 "CASH"
(b) $500.00 on August 7, 2012 "CASH"
(c) $300.00 on December 20, 2012 "Check No. 55"
(d) $200.00 on March 29, 2013 "CASH"
(e) $300.00 on June 2, 2013
(f) $200.00 on August 19, 2013 "Check No. 260"
95. Metro objects to the foregoing payments as being excessive, unsubstantiated,
unnecessary, and/or not properly paid for the benefit of the Estate.
Specific Objection Seven —Cash Payments to Accountants
96. The Account lists numerous transactions in which payments were made directly
to Accountants or to other individuals, allegedly "to pay on mortgages."
97. Nevertheless, the amounts paid to Accountants or others to pay for mortgages are
inconsistent in amount and in timing.
98. Furthermore, the Account shows that at least one other mortgagee, Integrity Bank,
was paid directly.
99. Inexplicably, payments were made to Accountants directly "to pay on
mortgages," even after the Nationstar Bank, Susquehanna Bank, and Integrity Bank mortgages
were satisfied on May 8, 2013 ($600.00 on July 12, 2013; $1,000.00 on July 26, 2013; $500.00
on July 26, 2013; $1,000.00 on August 3, 2013.
100. Metro objects to Accountants' payments directly to themselves or to others, and
demands strict proof that these cash payments to themselves were properly used to pay
mortgages encumbering property of the Estate.
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101. Metro objects to the foregoing payments as being excessive, unsubstantiated,
unnecessary, and/or not properly paid for the benefit of the Estate.
Specific Objection Eight—Collection of Rent
102. The Buyers are currently occupying the Heisers Lane Property.
103. The Account lists the Heisers Lane Property as an asset of the estate.
104. The Account lists income from the lease of the Heisers Lane Property, at a
monthly rental amount of$1,250.00 from January 2012 through March 2013.
105. The Account does not list any income from the Heisers Lane Property after March
2013, without explanation.
106. Metro objects to the Accountants' failure to collect rent from the Heisers Lane
Property after March 2013.
107. To the extent Buyers are making rental payments directly to Accountants due to
the Accountants' unauthorized transfer of the Heisers Lane Property to themselves, Metro
objects to the Accountants' collection of said rental payments and demands their inclusion as an
asset of the Estate.
Specific Objection Nine—Repairs and Maintenance
108. The Account shows payments of over $45,000 in various repairs, maintenance,
and lawn care costs associated with the Heisers Lane Property between September 2010 and
November 2011.
109. Metro objects to the foregoing payments as being excessive, unsubstantiated,
unnecessary, and/or not properly paid for the benefit of the Estate.
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Specific Obiection Ten—Failure to Recognize Full Claim
110. On page 6 of the Petition, the Accountants admit part of Metro's claim against
the Estate in the amount of$23,508.91, but do not state whether the admitted portion of Metro's
claim will be paid in full.
111. Both the $400k Loan and the $50k loan are in default.
112. As of January 10, 2014 the total amount due under the $400k Note is $241,020.17
and the total amount due under the $50k Note is $21,494.29.
113. Metro objects to the Accountants' failure to admit in the Petition the full amount
of Metro's claim.
WHEREFORE, Metro respectfully request that this Court schedule a hearing to
determine the adequacy of the Account, to address each of foregoing objections, to determine
whether the Accountants should be surcharged, to determine whether property of the Estate that
was improperly distributed to beneficiaries should be returned to the Estate, and to determine
whether there are any other outstanding issues that warrant relief. Metro further requests such
other relief as the Court deems just and appropriate under the circumstances.
Respectfully submitted,
MET�VANS & WOODSIDE
By. �� r
Ronald L. Finck, quire
Sup. Ct. I.D. No. PA 89985
Kevin J. Hayes, Esquire
Sup. Ct. Id. No. 314338
3401 North Front Street
P. O. Box 5950
Harrisburg, PA 17110-0950
(717) 232-5000 - Phone
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VERIFICATION
I, David M. Chajkowski, am a Vice-President of the Objector, Metro Bank and as such
am authorized to make this Verification. I have read the foregoing document and verify that the
facts set forth therein are true and correct to the best of my knowledge, information and belief.
To the extent that the foregoing document and/or its language is that of counsel, I have relied
upon counsel in making this Verification.
I understand that any false statements made herein are subject to the provisions of 18 Pa.
C.S.A. §4904 relating to unsworn falsification to authorities.
DATED:
David M. Chajkowski
Vice President
CERTIFICATE OF SERVICE
I certify that I am this day serving a copy of the foregoing document upon the person(s)
and in the manner indicated below, which service satisfies the requirements of the Pennsylvania
Rules of Civil Procedure, by depositing a copy of same in the United States Mail at Harrisburg,
Pennsylvania, with first-class postage, prepaid, as follows:
Robert G. Frey
FREY & TILEY
5 South Hanover Street
Carlisle, PA 17013
(Attorneys for Accountants)
Respectfully submitted,
ME E, E7 & WOODSIDE
By:
Kevin J. Hayes, Esqu'
Sup. Ct. Id. No. 314338
3401 North Front Street
P. O. Box 5950
Harrisburg, PA 17110-0950
(717) 232-5000 - Phone
Attorneys for Objector,
Metro Bank,f/k/a Commerce Bank/Harrisburg N.A.
Date: January 13, 2014
691521vl
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