A lawyer representing five former employees of Curt Schilling’s bankrupt video game company asked Massachusetts Attorney General Martha Coakley on Friday to investigate the firm’s relocation company for violating the state’s consumer protection law and sticking workers with a second mortgage.
To encourage workers to relocate when Schilling moved his 38 Studios to Rhode Island from Massachusetts, the company made a deal to help the employees sell their homes and pay the mortgages until they did, according to the relocation firm, MoveTrek Mobility LLC of Rockland. After 38 Studios filed for bankruptcy, the workers learned they may still be responsible for those mortgages.
In a letter to Coakley, the workers’ lawyer said his clients believed they had sold their homes to MoveTrek in April 2011. But MoveTrek said it was unable to sell seven homes because of the sluggish real estate market or because 38 Studios refused to pay closing fees or other costs to sell the homes.
The same day that 38 Studios filed for bankruptcy last week, MoveTrek sent the workers a letter telling them that it was rescinding its agreement to buy their homes. It also told workers it had stopped making mortgage payments, canceled homeowner’s insurance policies, and stopped trying to sell the homes.
MoveTrek chief executive Doug Mohns could not be reached Friday. He previously said he was sympathetic to the workers’ plight, but his company could not afford to pay the mortgages. Coakley’s office declined to comment.
Todd Wallack can be reached at firstname.lastname@example.org