GRETNA – A woman is suing her two nephews for allegedly selling property in a family owned real estate company without her consent and without providing her proceeds of the sale as well as withholding proceeds from rents provided by other properties.
Madelyn D’Gerolamo and Bellaire Apartments Inc. filed suit against Dave T. D’Gerolamo, Harold P. D’Gerolamo Jr. and AEH Enterprises LLC in the 24th Judicial District Court.
Madelyn D’Gerolamo claims that after the brother of her husband Edward, Jules D’Gerolamo, found out he had a terminal illness Jule’s, along with their other brother Harold P. D’Gerolamo Sr., created a limited liability company, AEH Enterprises LLC, to which Jules would transfer several pieces of real estate property he owned. The plaintiff alleges that athough Jules was initially named as the sole member of the company Harold Sr. was later named first manager and received a 26 percent interest in the company and he subsequently executed an operating agreement for the company from Jules. Madelyn D’Gerolamo asserts that Jules also later provided 26 percent ownership of AEH to Edward as well.
The plaintiff contends that after Jules died in April 2001 the remaining 48 percent of AEH Enterprises formerly belonging to Jules was split amongst Edward and Harold and their sister Angie Fulton who sold her portion of the estate to them for $118,970. Madelyn D’Gerolamo alleges that as of Dec. 12, 2001 Harold and Edward each owned 50 percent of AEH Enterprises. The plaintiff claims that her husband Edward died on May 3, 2004 he left a will bequeathing his interest in AEH Enterprises to her, which was later completed in the 24th Judicial District. Also, when Harold Sr. died on June 10, 2007 he left all of his property to his surviving spouse Gloria Cullen D’Gerolamo and when she died on March 13, 2009 that property was spilt amongst Harold Sr.’s children Harold Jr., Dave T. and Dina D’Gerolamo. After Dina died on Sept. 16, 2011 her remaining interest in AEH Enterprises was spilt between her brothers leaving them each with a 25 percent interest in the company.
Madelyn D’Gerolamo contends that after Harold Sr. died no new officers were elected to serve as the official administrator of AEH Enterprises. However, she claims that shortly after the defendants took control of half of the company they began selling off real estate holdings without consulting her and converting the proceeds for their own use. Madelyn D’Gerolamo also asserts that her nephews also refused to share rent money they received from the real estate holdings.
Madelyn D’Gerolamo also alleges Harold Jr., as a representative of AEH Enterprises, ran a Ponzi scheme in which he defrauded a man of $37,500 before admitting to using the money for personal use rather than investments and proceeded to partially repay the man $20,000 with money belonging to AEH Enterprises.
The defendants are accused of breach of contract, bad faith performance of contract, breach of fiduciary duty, wrongful distributions, unlawful collection and conversion of rents, failing to return wrongful distributions, conversion and violating the Unfair Trade Practices Act.
An unspecified amount in damages is sought by Madelyn D’Gerolamo to recover company proceeds.
The plaintiff is represented by attorney Jeffrey W. Bennett of Harahan.
The case has been assigned to Division A Judge Raymond S. Steib Jr.
Case no. 738-642.