Reuters is reporting that Connecticut is seeking the arrest of Mitchell Heffernan of Mortgage Lenders Network for failing to pay employees as the mortgage lender imploded.
Any charges would be the first against a former top executive of a large U.S. subprime lender since delinquencies and defaults began rising in recent months.
The Connecticut Department of Labor applied for an arrest warrant charging Heffernan with failing to pay about $3 million to 61 employees of Middletown-based Mortgage Lenders, department spokeswoman Nancy Steffens said.
The company which filed for bankruptcy failed to pay many of its employees as it closed its doors. This is becoming a common theme, recurring across the country. Like I’ve said before, one of the big stories that is not being told is that people, who were very good at their jobs, are getting screwed left and right and paying for their employer’s bad business decisions with their livelihoods.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
Related posts:
Loading ...