Allentown Waterfront Owner Claims Developers John Palumbo and Anthony Maneri Diverted $21 Million

In 2023, developer John Palumbo was in front of Allentown's City Council, smugly playing hardball over zoning changes he was seeking for two parking lots alomg the massive Allentown Waterfront project on Front Street. But Palumbo, along with fellow developer Anthony Maneri, are now themselves on the wrong end of a massive lawsuit, filed in Lehigh County's Orphans Court, alleging that they both diverted millions for their own benefit.

A good chunk of the Allentown Waterfront, including the former Neuweiler Brewery and American Atelier Building, is owned by Urban Residential Properties. The American Atelier, by the way, recently went up in flames. 

Urban Residential Properties is itself mostly owned (89%) by the Irrevocable Ruth Rachel Green Trust established for the benefit of Alex Wright. Green also owns 10% in an individual capacity, with the remaining 1% owned by Wright. 

Palumbo was a Trustee but was removed in March. Maneri was brought in Palumbo, ostensibly to help fund the project. 

According to a very lengthy Accounting Action filed by the Trust, both Palumbo and Maneri are accused of diverting at least $21 million from an open-ended mortgage for other projects. This includes over $12.5 million from the Neuweiler Lofts, $4.5 million in transfers to some outfit called Wonder Q and $5.4 million in unauthorized loans to Maneri. 

In the meantime, the Neuweiler Lofts project was behind schedule, over budget, with shoddy work and stalled construction. 

This action has been brought by Kevin T Fogerty, Esq. It certainly has all the earmarks of fraud.