Rockland contractor Matthew Lanzo is asking a court for a judicial dissolution of his 7-year-old business, claiming that his partner engaged in dubious deals.
Lanzo, of New City, accused Matthew J. Stern, a CPA and a real estate broker, of making it “no longer reasonably practicable” to carry on the business, in a petition filed Sept. 1 in Westchester Supreme Court.
“I view this claim as frivolous in its entirety and intend to fight the claim in court,” Stern stated in an email.
The two Matthews formed M2 Property Solutions LLC in 2014, to acquire and develop property. The business is based at Stern’s home in West Harrison.
Lanzo holds a 49% interest, according to the petition, and handled the construction work.
Stern has a 51% interest and is the managing member, according to the operating agreement, with “full, exclusive and complete discretion.” He is also designated as the “tax matters partner.”
Last year, Lanzo’s wife, Natalia, repeatedly asked Stern for tax records for preparing their personal tax returns. Previously, Stern’s firm had done their taxes.
When Stern failed to produce the records for several months, according to the petition, Lanzo had an attorney request more comprehensive records going back to 2014.
Stern allegedly responded by cutting off Lanzo’s company email account, canceling his corporate credit card and pulling a permit for a construction project in Airmont, Rockland County.
Stern had failed to pay three subcontractors, according to the petition, and told subcontractors he was no longer involved in the project and to call Lanzo directly.
Lanzo claims that M2 was paid $75,000 for the Airmont project but Stern used the money “for personal or other business endeavors unrelated to the company.”
Stern produced business records last November.
Lanzo claims he has discovered several improper practices:
- Stern temporarily increased his interest in the company by 18 percentage points over a two-year period and decreased Lanzo’s interest by the same amount, to apply businesses losses “for his personal benefit.”
- Last year, M2 Property Solutions received a $41,600 Paycheck Protection Program loan for which it was not eligible.
- Stern transferred $24,000 from M2 Property Solutions’ bank account to M2 Premier Property LLC, a company founded by Stern in 2016, in which Lanzo had no interest.
Lanzo is asking the court to dissolve the company and appoint a receiver to wind up its affairs.
He is represented by White Plains attorneys Brian T. Belowich and Kerry F. Cunningham.
