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NY License Suspended Over Unpaid Disbursements

NY License Suspended Over Unpaid Disbursements

Officials won’t discuss details of Matrix Investment investigation

August 16, 2005


A Connecticut mortgage company has, at least temporarily, lost its license to do business in New York amid complaints that it did not payoff mortgages.The New York State Banking Department has suspended the license of Matrix Investment Corp. of Groton, Conn., a state spokeswoman told

In addition, criminal prosecutors in Nassau County, N.Y., are also investigating Matrix.

“I can confirm there is an open investigation but can not elaborate on the investigation,” Katie Grilli-Robles wrote in an e-mail response to questions asked by

Matrix did not return an e-mail response seeking comment on the investigations.

Kori-Ann Taylor, press secretary in New York’s banking department, also said she could not comment on the complaints.

Taylor said she could not reveal the nature or number of the complaints.

“We are conducting an investigation (of Matrix),” she said. The company’s “license has been temporarily suspended.”

Under New York law that means Matrix is prohibited from conducting business until the suspension is lifted.

Prosecutors determined that based on the complaints an investigation was warranted, she said. But no wrongdoing has been alleged by state regulators or prosecutors.

However, Melville, N.Y., lawyer Kenneth Mollins said he may file suit against Matrix on behalf of a client.

Richard Bland claims the company failed to pay off mortgages on two properties he owns, leaving him payments of $8,000 a month.

It was Mollins who went on Bland’s behalf to regulators and who filed a complaint with the district attorney’s office, he told

Bland wanted to take some cash out of two properties he owns, one that already had an outstanding home equity loan. So working with Matrix he refinanced the loans and was due a payout of $30,000 cash.

But, according to Mollins, it took awhile for Bland to get his money.

“He waited a month-and-a-half and kept calling, three, four, five times a day,” Mollins said. Eventually, Bland did get his money.

Then he received a strange phone call from a mortgage company that wanted a payment. Bland was baffled; the loan was supposed to have been paid off.

“He called (Matrix) and asked ‘where is the mortgage, why aren’t you paying?’ Turns out, they never turned it in. They never funded the loan,” Mollins charged.

Mollins said three days after he met with state regulators Matrix’ license was suspended.

Should Mollins sue he’ll seek punitive damages and ask the court to nullify the loans.

Mollins also claims there are other complaints, but those could not be confirmed.

Patrick Crowley is a feature journalist and blogger, and a reporter and columnist for The Cincinnati Enquirer. e-mail Patrick at:

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