Carpionato Empire at War With Itself — Hundreds of Millions at Stake, Allegations of Fraud

Carpionato Empire at War With Itself — Hundreds of Millions at Stake, Allegations of Fraud

 

Over six decades, Alfred “Freddie” Carpionato built one of the largest property development companies in New England. 

Carpionato led the third-generation property development company, and at the time of his death in August of 2018, the business had combined billions in assets and projects in development. He bought his first building at age 15.

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

Now, the company is at war with itself. Claims and counterclaims are littering the Providence Superior Court docket.

In Rhode Island, Carpionato is known for developing Chapel View. The company owns the University Heights shopping area on North Main Street in Providence — the property is now branded University Marketplace. And, it owns dozens and dozens of other developments. 

In 2018, it bought the cadre of Benny’s retail locations — more than 30 stores for $72 million in 2017.

And, there are forgotten lands and forgotten promises like the old Fruit and Produce Market site in Providence and the Newport Casino structure in Newport. 

 

 

These are two of the spaces that the company rolled out glossy renderings and has left dormant for years. Those projects are just a fraction of his empire.  The dozens of projects stretch from Connecticut to Cape Cod.

At the time of Carpionato’s death, his number two had glowing things to say about him.

“Mr. Carpionato was a self-made man who truly lived the American Dream. He took great pride in his family, his work and he always believed in the potential of the people who lived and worked in Rhode Island,” said Kelly MacArthur Coates, president and COO of the Carpionato Group. “While never seeking the spotlight, he never wavered in his commitment to investing in New England. He developed destinations that truly enhanced communities and was a catalyst for meaningful economic development and job creation. He was also a quiet philanthropist whose generosity knew no bounds.”

But while Coates had kind words about Freddie Carpionato, today, Carpionato’s widow is making serious accusations against Coates.

 

Battle Now in Court

Carpionato’s widow —  Sheryl Carpionato — has filed suit in Superior Court in Providence against Coates and the long-time company attorney, Angelo Marocco.

It involves a series of trusts tied to the late Freddie Carpionato’s real estate empire.

She claims the two acted fraudulently and not only have they caused damages, but also that the result of their actions should be stripped of their membership in the trusts.

In dispute are trusts worth hundreds of millions of dollars.

She asserts in the lawsuit:

Plaintiff brings this action to obtain judicial relief against Defendants Angelo R. Marocco, Esq. and Kelly M. Coates for the knowingly false, fraudulent, and unlawful conduct of Defendant Marocco as an attorney (with Defendant Coates’ knowledge, agreement, approval, and assistance) in: (i) purporting to represent clients that Defendant Marocco knows have not engaged him as an attorney; (ii) wrongfully, falsely, fraudulently, and unlawfully charging and obtaining payment from the Trust for those unauthorized engagements; and, (iii) in at least one matter, wrongfully, falsely, fraudulently, unlawfully, and repeatedly charging and obtaining payment of attorney’s fees from the Trust for Mr. Marocco’s interactions with his own attorneys in a case in which Mr. Marocco is a defendant client, not an attorney.

In addition, Sheryl Carpionato claims that Marocco, as a co-trustee to one of the many trusts, is being paid $550,000 a year, but that he cannot be hired for legal work without her approval.

 "…Attorney Marocco, taking advantage of his positions as agent for service of process and as a co-Trustee of the Trust, with the knowledge, understanding, agreement, and approval of Mr. Coates in his positions as a co-Trustee of the Trust and as CEO/president of the Carpionato Group, improperly and wrongfully assigned and/or had assigned to himself as an attorney legal work for Trust entities without the approval of Mrs. Carpionato in her capacity as Trustee of the Trust,” according to her lawsuit.

Further, she claims in the lawsuit, “Attorney Marocco, with the knowledge, understanding, agreement, and approval of Mr. Coates, submitted by mail and/or electronic mail to the Trust monthly computer-generated invoices totaling hundreds of thousands of dollars for attorney fees for legal services for unauthorized legal work for Trust entities without the approval of Mrs. Carpionato in her capacity as Trustee of the Trust.”

 

"Fraudulently and Unlawfully" Received Hundreds of Thousands of Dollars

“Attorney Marocco, with the knowledge, understanding, agreement, and approval of Mr. Coates, falsely, fraudulently, and unlawfully, obtained, received, and accepted payment from the Trust of hundreds of thousands of dollars for attorney fees for unauthorized legal services for unauthorized legal work for Trust entities without the approval of Mrs. Carpionato in her capacity as Trustee of the Trust,” claims the lawsuit.

 

Claims Include Fraudulently Obtaining Money and Civil Conspiracy

In the claims she asserts, “The conduct of Attorney Marocco and Mr. Coates, as aforesaid, constitutes an agreement or understanding between them to commit wrongful, fraudulent, and illegal acts, in furtherance of which Attorney Marocco (with the knowledge, understanding, agreement, and approval of Mr. Coates) submitted by mail and/or electronic mail to the Trust monthly computer- generated invoices totaling hundreds of thousands of dollars for attorney fees for legal services for unauthorized or fraudulent legal work. The conduct of Attorney Marocco and Mr. Coates constitute a civil conspiracy to commit crimes and offense…"

She further calls for Coates to be removed as a beneficiary of two of the trusts created by the late Fred Carpionato.

 

Coates Fires Back - Claims Sheryl Carpionato Has Done Damage to the Trusts

Coates' response claims her charges are false; he asserts in a counterclaim that her actions have “breached her fiduciary duties.”

“As a co-Trustee of the Mashuena Trust and the Benny’s Trust, Sheryl Carpionato owes a fiduciary duty to Mr. Coates, as well as to all other beneficiaries, including but not limited to, the duty to administer the trust in accordance with its terms, to carry out the settlor’s intentions, the duty of loyalty, the duty of diligence and care, and the duty to act prudently,” claims Coates’s lawsuit.

Further, “In seeking a judicial declaration that Mr. Coates has forfeited any and all right or interest as a beneficiary of the Mashuena Trust and the Benny’s Trust, Sheryl Carpionato has, inter alia, failed to administer the trust according to its terms to carry out the settlor’s intentions.”

And, Coates claims, “In seeking a judicial declaration that Mr. Coates has forfeited any and all right or interest as a beneficiary of the Mashuena Trust and the Benny’s Trust, Sheryl Constantino has breached her fiduciary duties and the breach of her fiduciary duties has wrongfully and tortiously interfered with Mr. Coates’ beneficial interest in those trusts.”

“Sheryl Carpionato’s wrongful actions are not consistent with her fiduciary duties, but rather are designed to harass Mr. Coates, retaliate against him for not agreeing with her on various trustee decisions and actions and for challenging her wrongful conduct in various matters, including in other litigation pending in this court, Carpionato v. Coates, et al., No. PC-2025-00245. Sheryl Carpionato’s breach has caused and continues to cause damage to Mr. Coates,” his counter-claim states.

 

Coates Seeks:

According to Coates' counterclaim,  "[Coates] respectfully requests that the Court enter an Order: (a) Finding that Sheryl Carpionato has breached her fiduciary duties to Mr. Coates under the Mashuena Trust and the Benny’s Trust; (b) Awarding compensatory damages against Sheryl Carpionato; (c) (d) Awarding recovery of attorneys’ fees, costs and interest; and Granting such other relief as the Court deems just and equitable."

Stay tune. Superior Court Judge Brian Stern will be taking up the case on Monday.