MERIDEN – A Superior Court judge has dismissed an $18.7 million judgment against the Meriden Housing Authority and Maynard Road Inc. after the two nonprofits claimed a former director fraudulently obtained a loan at the center of the case.
New Haven Judge James Spallone said a new affidavit by Interior Department interim executive director Haley Fetro introduced evidence in the case that was not presented when the court ruled last year, specifically “the board’s actions.”
“These facts could have changed the outcome,” Spallone wrote in this month’s ruling.
Titan Capital ID LLC v. Maynard Road Corp. et al. is one of several lawsuits involving former director Robert Cappelletti and entities he created while working at the Meriden and Groton Housing Authority.
In the Titan case, the court granted summary judgment on May 12 because the two nonprofits defaulted on a $16.2 million loan Cappelletti took out on their behalf, according to court records. The judge’s recent ruling keeps the case open.
“The Court cannot tolerate this undermining of its decisions and judgments,” Spallone wrote. “Just as the public should be able to have confidence in the actions of its elected and appointed institutions, they also have the right to expect that the Court’s rulings will be impartial.”
Cappelletti was on administrative leave when the nonprofit’s attorney discovered that the resolution used to apply for the Titan loan was allegedly forged. He was fired on May 9 and the Meriden Housing Authority sued him.
Massimo D’Angelo, Cappelletti’s New York Brancroma attorney, would not elaborate on the pending litigation but said his client “did everything properly and with full authority.”
The $16.2 million loan was obtained in July 2022 to cover pre-construction costs for the mixed-use development at 143 West Main Street. However, when the dollars showed up on the agency’s books, Cappelletti told the board that the funds were tax credits from a Bristol housing project and passed on $13 million to a third-party attorney, according to Interior Department meeting minutes.
The same month Cappelletti applied for the loan, he received board authorization to sell $190 million in bonds, which was later increased to $220 million, according to Interior Department meeting minutes.
In asking for the verdict to be vacated, Interior Department interim executive director Hayley Fetrow said Cappelletti fraudulently inserted the names of the commission and the notary public in the false resolution authorizing the loan, according to court records.
Cappelletti was never authorized to issue promissory notes or guarantees of debt on behalf of MHA or MRC, Fetro’s affidavit said. According to court documents, only the boards of directors of MHA and MRC can authorize such action.
In addition, Cappelletti’s day-to-day responsibilities include directing and managing litigation involving the MRC and MHA, including the agencies’ defense in the Titan Capital case, Fetro said.
“Mr. Cappelletti fabricated the MHA resolution… intended to authorize Titan Capital to provide security in (Microsoft) Word by cutting and pasting a PDF signature page from another document into a resolution document he created,” court documents said. “The Department of the Interior never approved this resolution or authorized this transaction or any modifications.”
Titan Capital opposed a reopening of the judgment, claiming that the MRC and MHA commissioners were well aware of the litigation surrounding the loans because Titan had called all members to give testimony before the judgment. They further argue that Interior Committee Chairman Neil Evers discussed the debt repayment schedule with Titan attorneys well before the verdict.
Titan also noted that it won prejudgment relief in March 2025 secured by 17 properties and the defendant’s Ion Bank account. The lawsuit was also documented in detail by local news outlets, the argument goes.
Evers retired from the board in December, and new members are hiring a new executive director to succeed Cappelletti. Fetro, an attorney, is assisting them with the agency’s day-to-day operations and director search.
Carlos Ruiz, the housing authority’s new board president, was pleased with the judge’s decision and praised Fetro for presenting the case to the judge.
“Acting Executive Director Haley Fetro worked closely with legal counsel to raise the issues that led the court to reconsider its previous ruling,” Ruiz said in an email. “We are grateful for her diligence and leadership during this process.”
Ruiz said that shortly after assuming the leadership role, Fetro conducted a comprehensive internal review of the underlying records that were submitted to attorneys who supported the motion to vacate the verdict.
“Let’s not forget that this is an arduous process that requires ensuring authorities are properly managing HUD federal funds, and that cannot be ignored here,” Ruiz said. “Hailey’s affidavit provides clear facts and facts about the legal case against the former executive director for taking on massive debt without board approval.”
Ruiz would not comment on the board’s next steps, saying only that the case is moving forward and Fetro will stay on after hiring an executive director to assist with the ongoing litigation.
Sheldon James Lenes of Willinger, Willinger & Bucci represented Titan Capital. He said they were disappointed that Spallone did not respond to their arguments, but that they were not surprised by the ruling after learning about the circumstances of the alleged forgery.
“We will continue to pursue the borrowed funds from the Interior Department and other agencies that may be held responsible,” Lines said in an email.
The Groton Housing Authority also sued Cappelletti, claiming he fraudulently obtained $3 million from the agency in what its attorneys called a “massive Ponzi scheme,” according to court documents.
The FBI is investigating.
This article was originally published on Judge cites new evidence to overturn Meriden Housing Authority’s $18.7 million verdict.