Legal Team Secures $51 Million Prejudgment Remedy in Complex Bankruptcy and Shareholder Dispute
Bridgeport, CT - August 20, 2025: In a major legal victory for the Chapter 7 Trustee of The Gateway Development Group, Inc. (GDG) Howard P. Magaliff and co-plaintiff James Carnicelli, a collaborative legal team including attorneys from Pullman & Comley, LLC and Pastore LLC secured a $51 million prejudgment remedy (PJR) award in a complex, multi-jurisdictional dispute involving allegations of fraud, fiduciary breaches, and corporate misconduct. The ruling, issued by Judge Ozalis of the Stamford Complex Litigation Docket, marks a significant milestone in a case that spans both Connecticut state court and the U.S. Bankruptcy Court for the Southern District of New York.
The matter centers on GDG, a construction management company that provided its services in the construction of high-end real estate projects costing more than $175 million and which were owned or controlled by GDG’s majority owner, John Fareri. In 2019, after failing to pay GDG fair fees for its services on numerous projects, and upon being confronted by its president and minority shareholder, Mr. Carnicelli, Mr. Fareri, together with GDG’s general counsel and its chief financial officer, allegedly orchestrated a scheme to terminate Mr. Carnicelli, shut down GDG’s operations, and divert its projects and other assets to a separate affiliated entity. Mr. Fareri did this at the very time GDG was involved in a multi-billion-dollar project in Westchester County. When confronted with preliminary relief requested in the Stamford state court action, Mr. Fareri then caused GDG to file for Chapter 7 bankruptcy in the Southern District of New York. The Chapter 7 Trustee Howard Magaliff, represented by Pullman & Comley, joined co-plaintiff James Carnicelli, represented by Pastore LLC, in pursuing claims including fraud, breach of fiduciary duty, conversion, and violations of the Connecticut Unfair Trade Practices Act (CUTPA).
After extensive litigation, including 15 days of evidentiary hearings, 250 exhibits and testimony from 10 witnesses, Judge Ozalis of the Stamford Complex Litigation Docket issued a 58-page decision on August 8, 2025, finding probable cause to award $51 million in prejudgment remedies against all three defendants. This outcome enables the plaintiffs to secure assets ahead of a full trial scheduled for May 12, 2026.
“This ruling is not only a major step forward for our client, but also vindicates the legal protections that exist for businesses and minority shareholders that are harmed by a dominant shareholder and director who acts with impunity,” said Irve Goldman, chair of Pullman & Comley’s Bankruptcy and Creditors’ Rights practice.
The Pullman & Comley team was led by Attorney Goldman and Kristin Mayhew, working in collaboration with co-counsel Joseph M. Pastore III, Melissa Rose McClammy, and Paul Fenaroli of Pastore LLC. The case was litigated across the Connecticut Complex Litigation Docket and the U.S. Bankruptcy Court for the Southern District of New York.
About Pullman & Comley LLC
Pullman & Comley is one of Connecticut’s largest law firms and, for more than 100 years, has provided a wide range of legal services to clients in the New England region, as well as throughout the United States and internationally. Pullman & Comley’s major practice areas include business organizations and finance; public finance; health care; labor, employment law and employee benefits; litigation; property tax and valuation; real estate, energy, environmental and land use; and trusts and estates. The firm has offices in Bridgeport, Hartford and Westport, Connecticut; White Plains, New York; Springfield, Massachusetts; and Wakefield, Rhode Island. The firm is an active member of the Law Firm Alliance, an international affiliation of law firms. For more information, please visit www.pullcom.com.
About Pastore LLC
Pastore LLC is a leading Connecticut and New York based law firm. After decades spent working at large, impersonal firms, the founders of Pastore came together to offer clients a better choice: excellence in legal services without the typical built-in burdens of a larger firm. The firm has a myriad of practice groups with a particular focus in litigation and corporate matters for local, national, and international clients. The firm’s lawyers have litigated in federal and state courts throughout the country, both trials and appeals, and also have extensive experience in transactional matters, drafting and negotiating contracts of all sizes and intricacies. For more information, please visit www.pastore.net.