Lead Company Shuts Down

Lender Network 1-2-3 is in the process of a “winding up period” required under North Carolina law for the purposes of dissolution, according to the firm’s attorney William Bray.

Bray told MortgageDaily.com in a phone interview that the firm’s owner, Todd Lake, is providing the state with a full accounting of assets and liabilities. Bray added that there were only three or four customers, none of which would be considered major lenders, who made claims as creditors.

The claims do not exceed two or three thousand dollars, he added.

“The decision to close the company’s doors was made on Friday, September 22 and employees were notified that same day,” Bray told MortgageDaily.com in a follow-up e-mail statement.

By closing their doors, Bray said the company “avoided dragging their employees through any more uncertainty.” Initially, it was reported that the employees were not given their last paycheck. However, Bray said Lake is in the process of resolving that issue.

“To date, employees have received 1/2 of their pay for the final two-week pay period,” Bray stated. “The company hopes that it will be able to honor its remaining obligations to its employees and its creditors through the collection of outstanding accounts receivable or the liquidation of the company’s few physical assets.”

Lake did not return MortgageDaily.com’s request for an interview.

A general voice mailbox answered the company’s published phone number. The Web site has an attached six-page PDF link that gives an overview of the company’s lead generation techniques.

The PDF indicates that LenderNetwork had over 10 years experience in lead generation using outbound telemarketing, direct mail plans, automated voice messaging and offered data consultation. The company claims to have employed over 300 telemarketers at one point — generating more than 12,000 leads per month.