In sickness & in wealth
Suit exposes IRS ploy by gay pair
Sugg had been present at the birth of each of Reed’s six children and was the godfather to her son John.
When John moved to New York City in the 1980s, he lived with Sugg and Mailman. When John contracted HIV, Reed stayed with Sugg and Mailman so she could care for her son until he died.
“In light of these experiences, Dr. Sugg and Mr. Mailman asked Ms. Reed to help them execute Mr. Mailman’s estate plan,” the petition says.
Arthur Leonard, a lawyer who focuses on sexual orientation discrimination, said he had never heard of such an arrangement.
There have been cases of gays and lesbians adopting their companion to avoid some of the death tax burden. A double marriage was something new, Leonard said.
“I have not previously heard of a case like the one you describe, of undertaking such a marriage for purposes of wealth transfer,” he said.
The real estate empire that Mailman built in the East Village was worth protecting. He had turned buildings into the Astor Place Theater and the New York Theater Workshop, and owned a loft building on Lafayette St.
He also had run-ins with the IRS before the marriage.
He made headlines in 1992 when he said the taxation agency had targeted him and others for prosecution because of their sexual orientation. The charges against Mailman were eventually dropped.
Reed, who declined to comment for the story, married Mailman on Feb. 18, 1994. He died four months later. She and Sugg wed on Sept. 6, 1996.
“As a symbol of their unique relationship, as well as their unconventional family, Ms. Reed bought wedding rings for her and Dr. Sugg that each consisted of three interlocking silver bands, representing Ms. Reed, Mr. Mailman and Dr. Sugg,” the petition says.
After they exchanged vows, Reed remained in Tennessee while Sugg returned to New York. He managed Mailman’s assets and paid her medical insurance, and prepared their joint tax returns.
From time to time, Reed would ask Sugg if he wanted to end the marriage.
“Each time, Dr. Sugg would respond, in words or substance, ‘Don’t worry, I will take care of you,’ ”thepetitionsays.
Before his death on Aug. 7, 2016, Sugg named Reed as his sole beneficiary of a $37 million fortune and his artwork, according to the petition.
But she accuses Pevner of getting Sugg to sign an apartment lease with him under “suspicious circumstances.”
According to the petition, Pevner claims the lease gives him the option of buying the Lafayette St. apartment for the bargain price of $750,000 — even though Sugg sold another unit in the building for $5.4 million in 2015.
Pevner, who has produced indie films, including 1997’s “In the Company of Men,” is the CEO of Saint at Large Inc., a nightlife production business that Mailman and Sugg founded.
Pevner did not respond to a request for comment.