Thursday, November 5, 2015
NECC Owners Retain Pricey Real Estate
By Walter F. Roche Jr.
Even after paying out some $47.5 million to settle a bankruptcy case, land records show the owners of the defunct New England Compounding Center continue to hold onto millions of dollars worth of real estate.
They have done so in the wake of one of the worst outbreaks in U.S. history, an outbreak triggered by the shipment of fungus infested drugs from NECC that were injected into the bodies of hundreds of unsuspecting patients, killing 76 of the 778 who were sickened.
Douglas Conigliaro and his wife Carla, for instance, own homes in Dedham, Mass, Florida and Boston's Beacon Hill. Carla was the majority owner of NECC. Douglas headed a sister marketing firm. They paid $4.1 million for the condo in Boston. The Winter Park, Fla. home was purchased for $1.2 million.
Last year Gregory Conigliaro sold his interest in a Cape Cod property and a Southborough home to his wife, who still owns them. The properties are valued at $2.6 million. Gregory Conigliaro was also an NECC owner.
Barry Cadden, an NECC owner and founder, still owns his $1.7 million home in Wrentham, Mass.
Douglas, Carla and Gregory Conigliaro and Barry Cadden are under indictment with charges ranging from second degree murder to racketeering and mail fraud.
Cadden, the chief pharmacist, has been charged with 26 counts of second degree murder. Carla and Douglas Conigliaro are charged with evading federal law by making a series of bank withdrawals just under a federal reporting limit.
The two are also charged with withdrawing money from bank accounts that were under a court ordered freeze.
Gregory Conigliaro has been charged with conspiracy to defraud the U.S. Food and Drug Administration.
Though some of the real estate holdings were under a freeze imposed in the NECC bankruptcy, that was lifted late last year by U.S. Bankruptcy Judge Henry Boroff.
Federal prosecutors did seize assets from the Cadden and the Conigliaros valued at a little over $18 million in May. Those assets included several bank accounts, a boat and a car.
Cadden, court and land records show, used his Wrentham home as collateral for $500,000 bail after his arrest in December of last year.
As part of the settlement in the bankruptcy case, the Caddens and Conigliaros agreed to pay $47.5 million into a trust fund which will be used to pay victims of the 2012 outbreak.
Douglas and Carla Conigliaro were hit with a tax lien on their Boston condo last month, but the couple came up with the $13,743.03 tax payment by the end of the month. Boston assessment records put the current value of the condo at $4,549,400.