Worcester's Mercantile Center in 2018. Courtesy photo / File
Developer Charles “Chip” Norton concealed assets and transferred millions of dollars to family members over a two-year period, a trustee advising the U.S. Bankruptcy Court said in a court filing.
The complaint said Norton failed to disclose a series of transfers and distributions that took place between June 2023 and June 2025.
Best known for Worcester’s Mercantile Exchange project, Norton filed for Chapter 7 bankruptcy in August 2025, listing $1.7 million in debt from lenders, investors and other sources.
In a complaint filed June 4, trustee William Harrington alleged that Norton failed to disclose some of his financial accounts and asked the court to deny the discharge of Norton’s debt.
Norton’s Wellesley-based Franklin Realty Advisors was the highest-profile commercial developer in central Massachusetts over the past decade. His projects include the Mercantile Center office towers in downtown Worcester and the Southbridge Innovation Center, a former American Optical Co. factory that was updated into a 1.2-million-square-foot mixed-use complex. Other projects include the Wellsworth Hotel and Conference Center on the Southbridge campus and the 250,000-square-foot Worcester Business Center office building.
“Charles Norton takes the United States Trustee’s filing seriously and will respond through the appropriate court process. Mr. Norton has cooperated with the Trustee’s inquiry, including document production and sworn testimony, and he remains committed to addressing the issues raised in the complaint in a respectful and transparent manner,” attorney John Christopher of New York-based Christopher & Christopher LLP wrote in an email responding to a request for comment. “Mr. Norton is confident that, when the full evidence is presented, it will show he did not intend to conceal assets, mislead the court or defraud creditors.”
In March, the trustee asked Norton to produce eight types of documents during discovery in the case, and Norton testified under oath on April 6 and 17. Norton testified that he filed for bankruptcy because seven LLCs tied to his projects terminated their contracts.
Tax returns provided to the court show that Norton failed to disclose his ownership in nine business entities, the trustee said in the complaint.
Eight business entities deposited nearly $4.3 million into Norton’s undisclosed checking account at Eastern Bank between June 2023 and June 2025, according to the complaint.
During the same period, Norton transferred over $1.2 million to his undisclosed JP Morgan Chase investment account and nearly $1.2 million to family members from the undisclosed Eastern Bank checking account, the trustee said.
Norton’s creditors include Rockland Trust Co., MassDevelopment, WebsterFive, Cornerstone Bank, Savers Bank, Middlesex Savings Bank, Lauring Construction and the Downtown Worcester Business Improvement District, according to bankruptcy court filings.
