Jan 15, 2008 10:15 pm US/Central
Mortgage Company Announces It Can't Pay Employees
Reporting
Jack Fink
PLANO (CBS 11 / TXA 21) ―
A fast growing North Texas company with hundreds of employees in 36 states couldn't pay its employees Tuesday.
Now it has launched an internal investigation.
The company is Maverick Residential Mortgage.
Maverick CEO Bob Johnson acknowledged the company couldn't meet its payroll because of major cash flow problems. He said they discovered the cash crunch last week.
"We had no clue it was coming," said employee Greg Baker. He said he's beginning to wonder how he'll put food on the table for his wife and three young sons.
Tuesday, he and 650 other employees at the Plano-based company didn't get paid.
"Everyone was stunned. There were tears. There was shock," he said.
Reports indicated the company is missing nearly $4 million. "We're investigating that right now," said Johnson. "We have had many different people in here from our CPAs to auditors to help us understand where we are currently. We're not sure."
He said he told employees he doesn't know when they'll get paid.
"We're definitely trying everything we can to be able to handle that and that's part of where we are right now -- is getting our arms around how much cash we do have available for those individuals," said Johnson.
"I have a wife, three kids, a mortgage payment and a car payment that I'm two months behind on," Baker said.
The CEO said the company has not called law enforcement, and will try to make sure customers aren't affected.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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