Cumberland Farms' Haseotes Family in Multi-Million Dollar Feud
Kate Nagle, GoLocalProv News Editor
Cumberland Farms' Haseotes Family in Multi-Million Dollar Feud
George Haseotes is in Providence Superior Court this week suing his sister, Lily (Haseotes) Bentas and V.S. Haseotes & Sons Limited Partnership for what he alleges is Bentas’ refusal as the Managing Partner of the Partnership to release records and documents regarding properties owned in Massachusetts.
SLIDES: See Haseotes v. V.S. Haseotes & Sons Lawsuit BELOW
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe suit alleges the following:
Bentas, acting both individually and in her capacity as Managing General Partner, has deliberately, maliciously and unreasonably deterred and prevented Haseotes from receiving the requested document and important information concerning the Partnership’s financial affairs, operations, and dealings with third-parties and business affiliates.
Upon information, and belief, Bentas has caused or permitted individuals…to enter onto one or more of the properties owned by the Partnership and to spread tons and tons of sludge produced by Earthsource, Inc. a Massachusetts corporation, without proper consideration paid to the partnership. Upon information and belief, such sludge, if not properly applied, may have deleterious effects on the Partnership properties.
Haseotes is suing for breach of fiduciary duty -- and $7.5 million in damages.
Latest Haseotes Family Feud
While it was on the "Richest Families" list in 2015, the Haseotes family did fall off the list in 2016, when Forbes reported:
"The Haseotes family owns and operates 600 Cumberland Farms convenience stores and provides gas to some 2,500 Gulf stations throughout New England, New York, the Mid-Atlantic states and Florida through its Cumberland Gulf Group. It's one of the largest wholesalers of refined petroleum products in the region. Greek immigrants Vasillios and Aphrodite Haseotes founded the company in 1939. Today their grandson Ari Haseotes serves as president and CEO. Ari's aunt, Lily Bentas, is chairman of the board."
The Haseotes’ prior family feuds have been well documented, with Boston Magazine recently mentioning the family’s bankruptcy filing in 1992 as one of “Three Public Family Feuds Among Boston’s Most Powerful;” Courthousenews.com reported “Keeping Feud Quiet is Trick for Billionaire” in 2015 regarding an incident involving alleged trespassing.
“George Haseotes has a 25% part in the partnership -- he and Lily (Haseotes) Bentas are owners of Cumberland Farms,” said Kelly. “We have claims against her personally for breach of fiduciary duties and refusing to give records to my client, and failing to take action in regard to to partnership."
“The Partnership has $40M of property, and she's failed to take action to sell the property. It's her being hostile towards her brother George,” said Kelly. “There's some questionable management of the properties, which in total is about 3,000 to 4,000 acres."
Kelly also spoke to the “sludge” reference in the suit.
“It is material that is from a sewage facility in Massachusetts, and the manager of the partnership allowed all this sludge to be placed on land -- which George has objected to over the years,” said Kelly. “Allegedly its fertilizer. To be fair, its been approved by the Department of Environmental Protection in Massachusetts. But it hasn't been spread properly.”
Seeking Damages
“George is seeking $7.5M in damages as a result of mismanagement of the partnership,” said Kelly. “We want the partnership dissolved and the property sold immediately, which has been for sale for 15 years. [Bentas] has been in charge of the partnership since 2010 and never listed the property."
“This case has been pending since April. This family has been fighting with each other since 1990 -- and in 2000 they had a lawsuit in Delaware against each other,” said Kelly. “In this case, George testified [Monday] that this is all because [Bentas] is hostile to him, and machinations at Cumberland Farms.”
Bentas’ lawyer Michael Marino did not respond to request for comment.
The Power List - Judiciary and Lawyers, 2016
Big Cases
John Tarantino — Big cases. Big reach. And big influence.
Tarantino has headed big cases like the defense of the state’s pension reforms and fought against Rhode Island representing the paint industry in the protracted lead paint litigation.
Top Dog
Michael Kelly — Street fighting litigator that is happy to take on cities, the state, big companies - it does not matter.
Kelly’s cases are often controversial and nuclear. Recently, he beat the Department of Health on the suspension of former State Senator/pharmacist Leo Blais.
Nothing's dull when Kelly is involved.
Smooth
Mike Sweeney — From Alex and Ani to BENRUS to representing one of the top venture funds in the region, Sweeney is half corporate attorney and half business consultant.
The co-founder of Duffy and Sweeney, he has been one of the most strategically smart advisers in the state.
Lincoln-esque
Frank Williams - The former Chief Justice has been assigned to navigate pension lawsuits, 38 Studios and the Providence Firefighters’ battle with the City of Providence.
He may have more influence and make more money in his new role then he did when he served as Chief Justice.
As GoLocal wrote in April 2015, “Yet like so much of Williams' career in the public eye, the appointment was not without some degree of controversy. Williams will be paid $400 per hour for his work on the case, (according to a wpri.com report) and that fact led to criticisms on social media and talk radio.
Williams’ ability to become a lightning rod has been confounding to both Williams and his friends alike.”
Supremes
Maureen McKenna Goldberg — Think Diana Ross. She is the lead of the Supremes. Nothing happens in the hallowed chambers of the Rhode Island State Supreme Court without Goldberg’s stamp on it.
With her husband, lobbyist Bob Goldberg making millions in lobbying fees and representing some of the most powerful business interests in business, their reach is wide and deep.
If you want to know what is really happening in the state, then get on their boat one weekend and keep quiet and listen.
Deal Maker
Zach Darrow — Busy building one of the most dynamic business law firms in the state, complete with nearly a dozen real estate and corporate attorneys. Add to his mix a lobbying arm that functions like Pac-Man when it comes to tax stabilization agreements.
Darrow’s reach may be a little more complex than many see - the firm now has offices in New York and Miami.
Everyone took note when former Providence City Solicitor and Chief of Staff to Treasurer Seth Magaziner, Jeff Padwa, joined the firm earlier this summer. Darrow moves in mysterious ways.
Stealth
Michael Forte - Stealth. Forte doesn’t get much press and he likes it that way. The new Chief Judge of the Family Court has a low-profile public persona, but is a growing power in the judiciary.
A Democratic legislator who was appointed to the bench under Governor Ed DiPrete, Forte has amassed some serious power-wattage in Rhode Island.
Knows Both Sides
Artin Coloian - He has enjoyed of the most complicated and seemingly paradoxical careers, as a staffer to both U.S. Senator John Chafee and Mayor Vincent “Buddy” Cianci. A political advisor (and donor) to many — his campaign finance report ranges from Governor Gina Raimondo to GOP Cranston Mayor Allan Fung to Progressive Representative Aaron Regunberg.
Now, Coloian is one of the top criminal attorneys in Rhode Island. He has represented everyone from mobster Bobby DeLuca to Councilman Kevin Jackson to drug kingpins.
Understated
Chris Graham — Whether it is a start-up looking to close venture funding or a biotech looking at acquisition, Graham is a skilled craftsman that makes deals happen.
Understated, Graham is now a managing partner at Locke Lord (formerly Edwards and Angell). He is been through all of the firms mergers and transformations and had quietly continued to make deals happen.
Insider
Henry Kinch — Once a top advisor to then-Governor Bruce Sundlun and now serves as the Clerk of Providence County Courts.
Kinch is highly respected in and out of the court. When smart political people want advice they call Kinch.
His network extends far beyond Benefit Street. He served as President of the Pawtucket City Council and lost to Don Grebien for Mayor in 2010.
Could a political comeback be in the making?
Behind the Scenes
Claire Richards — She has been crafting the legal strategy for the state of Rhode Island for decades.
She has served in the office of legal counsel for Governors Lincoln Almond (R), Don Carcieri (R), Lincoln Chafee (I/D), and Gina Raimondo (D).
This is not a lifetime appointment - she has served at the pleasure of the Governor for decades. Whether it is a legal strategy on 38 Studios or advising on an appointment, she has been the behind-the-scenes lawyer for the state's top elected officials.
Aggressive
Max Wistow — Don’t look for friendly. His biggest fans say Wistow is one of the most aggressive lawyers in Rhode Island. His detractors use words that are unsuitable for publication.
He was selected by Governor Lincoln Chafee to pursue the recovery of the 38 Studios assets from a collection of litigants -- and in total, he recovered over $60 million.
Some top lawyers are known as a lawyers’ lawyer. Wistow is the lawyer most lawyer would hire to represent them.
Editor's Note: At the time of publication, the recovery was over $40 million, which had been previously noted. The figure has been updated to reflect the total at the conclusion of the legal proceedings, as of 2017.
