In a gripping legal battle that exposes the complexities of family and business ties, two brothers have filed a lawsuit against their father's former business partner, accusing him of deceit and betrayal. On January 6, 2026, Spiro and Steven Menegatos lodged a complaint in the United States District Court for the Eastern District of New York against Stefanos Evangelinos. The plaintiffs allege that Evangelinos engaged in a calculated scheme to conceal a crucial Shareholders Agreement after their father’s death, depriving them of their rightful inheritance and control over New Yorker Wholesale Bagels, Inc.
The lawsuit reveals a deeply intertwined relationship between the Menegatos and Evangelinos families, who have been connected through both business and personal bonds for decades. George Menegatos and Stefanos Evangelinos were equal partners in NYWB, with their partnership cemented by mutual trust. However, this trust was allegedly shattered following George's death on March 7, 2021. According to the complaint, despite being aware of a Shareholders Agreement that granted Spiro and Steven rights to retain their father's shares upon his death, Evangelinos denied its existence for over thirty months. He allegedly told George’s widow Mary and other professionals involved in estate administration that NYWB operated on a "handshake" basis.
This concealment is said to have allowed Evangelinos to consolidate control over NYWB while marginalizing the Menegatos family. The complaint accuses him of providing false information during estate valuation processes which led to an undervaluation of George's shares at $1.83 million instead of an estimated $10-15 million fair market value. Furthermore, it is alleged that once the Shareholders Agreement was eventually disclosed under suspicious circumstances in late 2023, Evangelinos attempted to use it to his advantage by blocking share transfers intended for Spiro and Steven.
The plaintiffs are seeking compensatory damages exceeding $25 million for fraud, breach of fiduciary duty, constructive fraud, accounting irregularities, and tortious interference with prospective economic advantage. They also demand punitive damages to deter similar misconduct in the future. Additionally, they request restitution for benefits wrongfully obtained by Evangelinos along with an equitable accounting of NYWB’s finances since March 2021.
Representing Spiro and Steven Menegatos is attorney Jacob Chen from DGW Kramer LLP. The case has been assigned Civil Case No. 1:26-cv-78 at the Eastern District Court of New York.
Source: 126cv00078_Menegatos_v_Evangelinos_Complaint_Eastern_District_New_York.pdf