By James Mitchell
In a recent development in the ongoing defamation lawsuit filed by Mayor Carlo DeMaria in 2021 against the Everett Leader Herald, strong evidence has emerged that Matthew Philbin and his brother, Andrew Philbin, Jr., attempted to place various properties into Limited Liability Corporations in order to evade satisfying any judgments against them and in favor of DeMaria.
A June 16, 2023, affidavit filed by Matthew Philbin states that if he wanted to fraudulently transfer properties, he would simply have transferred them to LLCs and encumbered them through mortgages. However, in a reply by the mayor’s attorney, Jeffrey Robbins, the attorney pointed out that this was precisely what Philbin did – admitting to fraudulently transferring properties. Philbin’s affidavit stated that he says that he simply transferred and mortgaged millions of dollars of property in October 2022 in what Philbin describes as “the ordinary course of business.”
But in contradiction to his affidavit, Philbin testified under oath in his April deposition that he didn’t know why he was moving property over to LLC. “What I’m showing you, second page, looks to be a Quitclaim Deed signed by you and your brother Andrew on October 4, 2022 deeding over 59 Chelsea Street to something called The 59 Chelsea Street LLC, correct?” asked Atty. Robbins.
“This on the first page?” replied Philbin. “Yes. On the page entitled “Quitclaim Deed,” asked the attorney. “Okay,” said Philbin.
“Is that right?” again, asked the attorney. “Okay,” replied Philbin.
“And your signature and that of your brother appears there?” asked Robbins. “Yes,” was Philbin’s answer.
“And why did you transfer the property to The 59 Chelsea Street LLC in October of 2022?” asked Atty. Robbins. “Yeah, I don’t know,” stated Philbin.
“Can you think of any reason as we sit here, why in October of 2022 you and your brother deeded over a property to an LLC?” asked Robbins. “No,” answered Philbin.
“…and that was in consideration for one dollar, I take it?” asked the attorney.
“Yup. That’s what it says,” replied Philbin.
When asked if he could identify any reason why he and his brother transferred three Everett properties on Oct. 4, 2022, into a newly formed LLC just after adverse development in the litigation against him, again, in consideration for one dollar, Philbin, stated, “No.”
Philbin would admit to taking out a million-dollar mortgage on Oct. 13, 2022, 12 days later, that he and his brother owned on Ossipee Road in Somerville, claiming it was for completing construction work at their 322-324 Ferry St., Everett property, which they also attempted to place in an LLC.
Attorney Robbins questioned Matthew about his and his brother Andrew’s reasoning that after nine years of ownership of multiple property holdings they wanted suddenly to transfer them to newly formed LLCs in October 2022. The mayor’s attorney pointed out that one would expect that an affidavit would have been submitted by Andrew explaining why he and his brother would have done this. But there was no affidavit filed by Andrew, who is also represented by the same attorney as his brother and the other defendants.
Andrew did not show up in response to the subpoena or the Discovery Master’s Order requiring him to appear to testify at a deposition and maintained that he was not available until after the hearing before the Discovery Master.
Middlesex Superior Court Judge William Bloomer has issued a preliminary injunction freezing Matthew Philbin’s and Joshua Resnek’s assets, ordering them not to further transfer, mortgage or in any way encumber any of their assets until further notice.
At a recent hearing Judge Bloomer instructed Philbin’s and Resnek’s lawyer that his clients remained bound by that Order while he takes Mayor DeMaria’s request for a permanent injunction under advisement.