"Also in the motion, CrossCountry's attorneys say the company paid Gallo a $2.1 million sign-on bonus in 2023 with a contractual agreement requiring repayment if he left the company within 36 months. Gallo, who faces federal mortgage fraud charges, previously worked for NJ Lenders Corp., where he was a top producer. He and his assistant, Mehmet A. Elmas, were charged by the Department of Justice (DOJ) in April 2024 for falsifying loan documents from 2018 through late 2023."
"In October 2024, Gallo and Elmas were indicted by a federal grand jury on one count of conspiracy to commit bank fraud, eight counts of bank fraud, eight counts of false statements to a financial institution and one count of aggravated identity theft. Due to Gallo's criminal charges, he was terminated by CrossCountry before the 36-month period. The termination was premised entirely on the presence of the allegations of fraud and Mr. Gallo's indisputable arrest and criminal complaint against him, CrossCountry's filing states."
"As a result, CrossCountry sent Gallo a letter demanding repayment of the sign-on bonus, which he has reportedly not complied with. CrossCountry filed for arbitration with the AAA to recover the funds and argues that the court lacked authority to stay the arbitration. CrossCountry told HousingWire it does not comment on legal matters. In an emailed statement, Gallo's attorney, Michael S. Weinstein of Cole Schotz, called the filing unfortunate."
CrossCountry asserts it paid Gallo a $2.1 million sign-on bonus in 2023 with a contractual repayment obligation if he departed within 36 months. Gallo faces federal mortgage fraud charges and previously worked as a top producer at NJ Lenders Corp. The Department of Justice charged Gallo and his assistant Mehmet A. Elmas in April 2024 for falsifying loan documents from 2018 through late 2023, and a federal grand jury indicted them in October 2024 on multiple counts including bank fraud and aggravated identity theft. CrossCountry terminated Gallo before the repayment period expired, demanded repayment, and filed for arbitration with the AAA to recover the bonus. Gallo's attorney called CrossCountry's intervention unfortunate and said Gallo will file a strong opposition while prioritizing the criminal proceedings.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]