Rockland contractor faces foreclosure, $1M in liens
A Superior Court judge has approved liens on the bank accounts of four family members operating a Rockland contracting business in attempts to recover a loan from the Bank of Maine. The bank has separately filed to foreclose on multiple midcoast properties the company owns.
The Bangor Daily News reported the liens to recover $1 million for the bank are against Frank, John, Vincent and Filomena Ferraiolo, who are identified in the bank's court complaint as shareholders in Ferraiolo Construction, Ferraiolo Corp. and Ferraiolo Pre-Cast. The bank complaint alleges the family improperly diverted portions of the loan for private use, including the transfer of $1.3 million out of the country for construction of a villa in Cervinara, Italy, outside of Naples, the paper reported.
The bank says the company was first notified in February that it was in default of a $10 million loan issued in 2011. Earlier this month, the three family companies merged and filed for bankruptcy, according to the bank complaint.
Last week, the bank filed to foreclose on multiple company properties in Rockland, Rockport, Camden, Union, Warren, Appleton and Washington, the sale of which the bank says would still leave it short $1 million on the loan. The bank estimates the aggregate value of all of the company's properties to be $4 million.
The bank complaint did not detail the initial purpose of the loan other than to say the money was not to be paid to family members outside the regular course of business.
The paper reported that George Marcus, an attorney representing the companies, said the companies hope to resolve the bank's complaint. Marcus told the paper he does not represent the individual family members.
According to the company's bankruptcy filing, the paper reported, it lists between 100 and 199 creditors.
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