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February 25, 2008

AG, labor commissioner seek $2.6M in unpaid wages

Attorney General Richard Blumenthal and Department of Labor Commissioner Patricia H. Mayfield today announced action in federal bankruptcy court to recover millions of dollars in alleged unpaid wages and commissions for former employees of Mortgage Lenders Network USA Inc.

Blumenthal's office, in coordination with the DOL, recently filed a proof of claim in U.S. Bankruptcy Court in Delaware to recover more than $2.6 million allegedly owed to more than 100 former MLN employees.

MLN, a subprime lender, filed for bankruptcy more than a year ago after laying off hundreds of employees in Connecticut and many more nationwide. More than 100 employees were allegedly never paid wages and commissions.

"This is money due for hard work and valuable time devoted by former employees of Mortgage Lenders Network - as much as $2.6 million in alleged unpaid wages," Blumenthal said in a statement. "Hundreds of Connecticut employees have lost their jobs, and more than 100 of them claim that they were never paid - in most cases thousands of dollars. We will fight relentlessly to recover wages and commissions - a lot of it deserving formal priority among the corporation's debts."

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