New City contractor claims West Harrison partner has made questionable deals
Rockland entrepreneur Matthew Lanzo is asking a court for the judicial dissolution of his 7-year-old business, saying his partner had entered into questionable deals.
Lanzo, of New City, accused Matthew J. Stern, a CPA and real estate broker, of making the business “more reasonably possible” in a September 1 motion filed in the Westchester Supreme Court.
“I consider this claim to be frivolous in its entirety and intend to fight it in court,” Stern said in an email.
The two Matthews formed M2 Property Solutions LLC in 2014, to acquire and develop properties. The company is based at Stern’s home in West Harrison.
Lanzo has a 49% stake, according to the petition, and managed the construction work.
Stern owns a 51% stake and is the managing member, under the operating agreement, with “full, exclusive and complete discretion”. He is also referred to as a “tax partner”.
Last year, Lanzo’s wife Natalia repeatedly asked Stern for tax records to prepare their personal tax returns. Previously, Stern’s firm had done its taxes.
When Stern did not produce the files for several months, according to the petition, Lanzo asked a lawyer for more complete files dating back to 2014.
Stern reportedly responded by cutting off Lanzo’s company email account, canceling his company credit card and obtaining a permit for a construction project in Airmont, Rockland County.
Stern had not paid three subcontractors, according to the petition, and told the subcontractors he was no longer involved in the project and to call Lanzo directly.
Lanzo claims M2 was paid $ 75,000 for the Airmont project, but Stern used the money “for personal or business activities unrelated to the company.”
Stern produced business briefs last November.
Lanzo claims to have discovered several inappropriate practices:
- Stern temporarily increased his interest in the business by 18 percentage points over a two-year period and decreased Lanzo’s interest by the same amount, to apply the business losses “for his own benefit”.
- Last year, M2 Property Solutions received a paycheck protection program loan of $ 41,600 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 asks the court to dissolve the company and appoint a receiver to wind up its affairs.
He is represented by White Plains lawyers Brian T. Belowich and Kerry F. Cunningham.