Mayoral Candidate in legal
dispute
Israel Reyes at
the center of lawsuit over allegations on
May Street
Paula Porten
Former Lawrence City
Councilor and candidate for Mayor, Israel
Reyes, is wrangled in a lawsuit involving
May Street Partners, LLC, Reyes
Group, Inc. and several properties on May
Street in Lawrence.
May Street Partners owns the property
located at 36 May Street and entered into
a Memorandum of Agreement with Israel
Reyes as President of Reyes Group to
accomplish the development and sale
of developed property.
Under the agreement, Reyes would be
responsible for day to day oversight of
the construction of one duplex, consult
relative to the permitting process and
interface with City of Lawrence
personnel.
Reyes Group would act as the construction
management/marketing firm for the
project. According to the
agreement, Reyes Group would also be paid
a consulting fee of $25,000.00 for each
duplex built.
Documents obtained from Essex Superior
Court reveal that in the lawsuit filed
against May Street Partners, Reyes claims
that the parties entered into an
Agreement on or about May 15, 2006. The
agreement states that May Street Partners
contracted with Israel Reyes for the
development, permitting and construction
of four units known as 36A, 36B, 38A and
38B, May Street.
Reyes claims that he performed all of his
obligations under the contract and that
May Street Partners failed to pay him
$31,500 for construction costs and
$18,750 for services performed under the
contract.
Reyes claims in his complaint that he
provided May Street Partners with an
accounting of the monies owed and that
they have failed to make payments.
However, according to May Street Partners
answer to the complaint, as well as its
counterclaims, not only did Reyes fail to
provide any accounting, he also failed to
submit invoices and corresponding
cancelled checks, he refused to account
for $15,000 paid by May Street Partners
in connection with the Agreement, and he
refused to submit bank statements where
funds paid by May Street Partners and the
Southern Bank of New Hampshire were
deposited.
According to May Street Partners, they
are unable to verify the actual cost of
labor because Reyes Group refuses to
disclose any written verifications of the
workers and their costs. Also, according
to the answer, May Street Partners has
been notified that certain workers hired
by Reyes Group to work on the premises
have not been paid.
To date, May Street Partners have paid
Reyes Group $512,250.
In their counterclaim, May Street
Partners is claiming breach of contract,
breach of fiduciary duty,
misappropriation of funds, violation of
MGL ch93A and slander of title.
A Mechanics lien is a lien which is
placed on property for the amount of
money in dispute and registered with the
Registry of Deeds so that when a title
search is done on the property the lien
will appear and must be cleared before
the property is sold.
The mechanics lien is in the amount of
$44,000.
May Street Partners claims that the
information contained in the recording of
the mechanics lien is an intentional and
false misrepresentation of the facts and
the amount claimed.
The breach of fiduciary duty claim arises
from the allegation that The Reyes Group
falsely communicated with the Southern
Bank of New Hampshire regarding payments
made by May Street Partners, that Reyes
Group walked off the
construction site of the premises and
that Reyes Group refuses to disclose
financial information, its record
keeping, disbursement, and bookkeeping to
May Street
Partners.
May Street Partners is demanding $60,000
from Reyes Group for each counterclaim,
with triple damages, attorney fees, costs
and other damages the Court deems
appropriate.
A Status Conference on this case is
scheduled this month in Essex Superior
Court in Newburyport.
Reyes refused to be interviewed for this
story.
A former member of the Planning Board,
and a former candidate for State
Representative, Reyes is considered a
serious contender for mayor in 2009.
Running against Reyes are: City Council
President Pat Blanchette, Pedro Payano,
State Rep. Willie Lantigua, Former Mayor
Marcos Devers, Julia Silverio, and Nunzio
DiMarca. Considering a run for the corner
office are Police Chief John Romero,
District E Councilor Dave
Abdoo, former Councilor Carlos Matos.
The Valley Patriot will be following the
Reyes case and follow up stories will be
filed.
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