Marlboro feels impact of Kara Homes collapse
BY VICTORIA HURLEY-SCHUBERT
Staff Writer

MARLBORO - To cover its interests in the ongoing bankruptcy of Kara Homes, the Township Council has authorized funds to hire a bankruptcy attorney.

According to action taken at the council's April 12 meeting, Matthew Gia-cobbe, of the firm Scarinci and Hollen-beck, will oversee Marlboro's concerns during the East Brunswick-based homebuilder's ongoing court proceedings, which include the possible sale of certain developments, financing and contractual issues, said Township Attorney Andrew Bayer, of the firm Gluck Walrath.

"Just like with doctors, there's subspecialties in law," Mayor Robert Klein-berg said. "We were the first municipality to try and go after their (Kara Homes) bonds ... to hire someone to make the necessary improvements, and we wanted someone who specializes in bankruptcy" to oversee our interests.

The Crine West, Buckley Estates and Emerald Hills developments are Kara Homes' properties in Marlboro. All three projects have unfinished work that includes sidewalks, grading and street issues among other items, said Bayer. The township has placed the performance bond company, Bond Safeguard, on notice there is work that needs to be completed, he said.

Recalling Kara Homes' bonds, which are in amounts up to and including $3.3 million, will force the performance bond company to hire someone to complete the unfinished work for the township, said Bayer.

Kara Homes filed for bankruptcy last year, leaving many homeowners in the lurch and projects scattered throughout Monmouth and Ocean counties incomplete.

Kara Homes was founded in 1999 by its president, Zudi Karagiozi, who had hoped to build more than 20 luxury housing developments in New Jersey.

Scarinci and Hollenbeck will also represent Marlboro "with regard to one of the indicted developers," said Bayer, who did not release the individual's name due to ongoing court proceedings.

The firm's fees will not exceed more than $30,000, said Bayer.