Westchester County Business Journal 091916

Page 1

8 | COMFORT CREATOR SEPTEMBER 19, 2016 | VOL. 52, No. 38

YOUR ONLY SOURCE FOR REGIONAL BUSINESS NEWS

25 | KINGSTON REVIVAL westfaironline.com

The second million REGENERON TURNS DEVELOPER FOR NEXT EXPANSION

BY ALEESIA FORNI aforni@westfairinc.com

R An architect’s rendering of the research and development campus planned by Regeneron Pharmaceuticals Inc. on vacant land the company owns in the town of Greenburgh.

Contractor hit with $12.3M judgment for home repairs scam BY BILL HELTZEL bheltzel@westfairinc.com

W

hen fires devastated luxury homes in Fairfield and We s t c h e s t e r counties, a Chubb Corp. insurance adjuster was there to assess damages and start the restoration process. But Chubb did not know that its own adjuster was in cahoots with a contractor he hired to esti-

mate repair costs. The contractor inflated the estimates and the adjuster steered the repair work back to the contractor. A federal jury in White Plains recently ruled unanimously, in a 40-day trial, that the adjuster, Dennis Sorge, and the contractor, Paul H. Mertz Jr. and the Mertz Co., are liable for fraud and breach of fiduciary duty. U.S. District Court Judge Nelson S. Roman entered a judgment of nearly $12.3 million against Mertz and his company on

Aug. 23. He suspended judgment against Sorge while a bankruptcy court sorts through his finances and did not specify the amount of damages against Sorge. The Mertz Co., based in Greenwich, has been operating in Fairfield and Westchester counties since 1972. For many years it built homes. In the late 1970s, according to its website, Mertz began specializing as a damage restoration consultant. From 2004 to 2010, Chubb paid Mertz nearly $1.1 million in consulting fees. Sorge, formerly of Croton-onHudson, was a Chubb employee for 30 years and worked out of the White Plains office. From 2004 to 2010, Chubb paid him more than $1 million. He has since moved to

egeneron Pharmaceuticals Inc., the state’s largest biotechnology company, will venture into real estate development with plans to build a roughly 1 million-squarefoot research and development campus on a portion of a vacant 100-acre parcel in the town of Greenburgh. Purchased last year for $73 million by Loop Road Holdings, a wholly owned subsidiary of Regeneron, the undeveloped property adjoins the company’s headquarters at The Landmark at Eastview. The parcel is on the west side of Saw Mill River Road, approximately 300 feet from the intersection of Old Saw Mill River

Wake Forest. Sorge’s job was to investigate the extent of losses when an insured home was damaged. He hired experts to provide repair estimates and he determined how much Chubb would pay to settle homeowners’ losses. Chubb expected consultants such as Mertz to act independently. A contractor could not consult for Chubb and also work at the same time as a contractor on the insured property. Consultants may not seek or even discuss the possibility of a contract until their work for Chubb is done, and even then the contract must be disclosed to Chubb. Mertz assessed hundreds of property claims for Chubb. The lawsuit, filed in 2012, singles out

Road and Grasslands Road. Regeneron officials told the Greenburgh Town Board this month that the fast-growing company plans to construct nine buildings totaling 1,016,190 square feet of research and development space on the site, in addition to five parking structures, some of which will be underground. Building sizes will range from 40,000 square feet to 280,000 square feet. Solar panels will be installed on some buildings on the site and Regeneron plans to put in a central energy plant to service the entire site. Joanne Deyo, vice president of facilities at Regeneron and an officer of Loop Road Holdings, said the goal of the expansion is to create a space that is both state-of» REGENERON, page 28

eight claims on homes damaged by fires — in Darien and Lakeville in Connecticut and in Armonk, Mount Vernon, New Rochelle, North Salem and South Salem in Westchester County. Sorge hired Mertz to provide repair estimates. Typically, according to the lawsuit, Sorge would introduce Mertz to a homeowner shortly after a fire and recommend him as an experienced, high-end builder. Mertz also would solicit the repair job while working for Chubb. Mertz submitted inflated estimates, Chubb contended. Some work was not covered under the insurance policies. Some repairs were never done. Mertz pocketed millions of dollars and shared » CHUBB, page 6


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.