Costantino Claims Providence Gypped Him Out of $37k
Thursday, November 17, 2011
A prominent business owner and a Providence City Councilman are in a financial dispute over a foreclosed South Side property the two attempted to purchase six years ago and now one side claims the city owes him a refund of over $37,000.
In April 2005, realtor Gregory Costantino, the brother of former House Finance Chairman and Providence Mayoral candidate Steven Costantino, and Ward 10 Councilman Luis Aponte allegedly tried to acquire the assignment of a tax title interest held by the city on a property located at 3 Husted Court.
Records show that on April 13 of that year, Costantino’s real estate business, Cost Realty, Inc., cut a check (see below) to the city collector for $37,210.91. But Aponte claims “there were title issues” with the property and the two could not follow through with the foreclosure.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTJust over four months later, the city issued a refund check (see below) to Aponte for the entire amount. Costantino claims he was never reimbursed.
City Refunded Aponte, Not Costantino
It is unclear why the city would issue a check to Aponte. The original check is clearly signed by Costantino and Aponte told GoLocalProv the two had no contract recognizing their partnership. But records show that former city collector Robert Ceprano and deputy city collector Marc Castaldi signed off on the refund for Aponte.
In 2009, then Mayor and now Congressman David Cicilline fired Ceprano after he accepted a bad $75,000 check from Cicilline’s brother to help cover outstanding taxes. Ceprano subsequently sued the city for wrongful termination.
In a petition to the City Council filed last week, Costantino requested an investigation into what happened to the property and the money he paid to acquire it.
“After several months o inquiring as to the status o the title and receiving no definite response as to when it would be transferred to me, I did nothing further and thought that eventually the matter would be resolved,” the petition states. “Six years have now passed and still I have not received the tax title interest or a refund of the money paid by Cost Realty, Inc.”
The petition continues: “I request that the Claims Committee initiate an investigation as to what happened to the tax title interest or the property and the money paid by my company to acquire it. I am available to provide any further information or answer any questions regarding this matter at the request of the Committee.”
On Tuesday, Aponte acknowledged the two sides are in a dispute over the amount of money owed to Costantino, but said he thought they were going to “work it out.” The Councilman said he was unaware of any complaint filed by Costantino, but after GoLocalProv inquired about the issue, he said he plans to hire a lawyer.
Costantino did not return several calls requesting comment.
Asked if it was a mistake to not have contract signed with his business partner, Aponte said, “the only mistake, I realize now, was doing business with a friend.”
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