Court Allows Arrest Of Ex-Mortgage Lenders Exec

Law360, New York (April 11, 2007, 12:00 AM EDT) -- A bankruptcy court cannot halt a state criminal prosecution of the former president of subprime lender Mortgage Lenders Network USA Inc. for failing to pay $2.5 million owed to its employees, a bankruptcy judge has ruled.

U.S. Bankruptcy Judge Peter J. Walsh’s decision at a Tuesday hearing opens the door for the state attorneys office to charge Mitchell Heffernan on 61 counts of failure to pay wages. A spokesman for the office said it does not comment on pending arrest warrants.

Heffernan’s attorney did not immediately...
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