Danbury, CT— A lawsuit scheduled to reconvene in the coming weeks poses serious problems for Glen Nelson, President of Matrix Reality Group. The suit against Nelson was filed by the estate of a former partner and alleges mismanagement, misfeasance, and waste by Nelson. It demands that he payout damages exceeding $65 million and calls for the dissolution of Matrix Reality Group.
“We hoped that Glen Nelson would help spur growth and create good jobs in Danbury,” 32BJ SEIU Connecticut Director Kurt Westby said. “Unfortunately, he’s been bad for Danbury’s workers, and if the grossly unethical behavior alleged in the lawsuit proves to be true, it shows that Nelson could be bad for tenants as well.”
With its management embroiled in controversy, the Matrix Corporate Center could have an even more difficult time finding renters. According to the real estate on-line listing service Loopnet.com, the Corporate Center in Danbury has a 60 percent vacancy rate, with roughly 800,000 square feet available. When Nelson acquired the former-Union Carbide building last June, the New England Real Estate Journal reported it was only 35 percent empty.
The lawsuit alleges that Nelson has run Matrix Realty “in pursuit of his own self-interest” including transferring “to himself substantial portions of the Enterprise’s profits, property, and value” at the expense of tenants, business partners and communities where Matrix operates. While Nelson denies any wrongdoing, the court granted in part the estate’s motion for a preliminary injunction.
These proceedings are not the first legal problems for Matrix and Nelson. Matrix Realty Group is appealing a court order to pay $9.2 million to remedy damages from its failed bid to buy 24 Dunkin Donuts stores in New York. In December 2009, Wingates LLC, owned by Nelson and the Nieto estate, incurred a $26,842 federal tax lien. Another tax lien was placed on a yacht registered to Nelson’s home address.
Before Nelson managed the corporate center, it was cleaned by 40 union custodians—some who had worked at the building for 20 years—who replaced with lower-wage, non-union workers. The workers who’ve lost their jobs continue to protest outside of the property.
The National Labor Relations Board recently found merit that Nelson threatened to shoot and kill one of these workers during a food drive. While Nelson denies the allegation, he was forced by the National Labor Relations Board to settle the charges or face trial.
Matrix Realty Group and President Glen Nelson have ownership interests in ten real estate properties in seven different states. The company’s holdings include residential units, commercial properties and undeveloped land.
With 120,000 members on the East Coast—including 4,500 in Connecticut—SEIU 32BJ is the largest property service union in the country. The union represents commercial cleaners, security officers, property service workers and food service employees throughout the state.
updated 7/14/2010
