NEXA Lending Sues Ex-Employee Over Abusive Conduct, Trade Secrets

NEXA Lending initiated legal action on August 7 in an Arizona federal court, suing former independent contractor Austin Dell’Abate for alleged violations of his contract, misappropriation of trade secrets, and the publication of false and damaging statements about the company. The lawsuit accuses Dell’Abate of "tortious interference with NEXA’s customer and referral relationships," among other claims. Dell’Abate was hired by NEXA Lending in May 2026 and was terminated at the end of July. According to court documents filed by the lender, his termination stemmed from "a documented pattern of abusive and unprofessional conduct that had generated complaints from two independent loan-processing companies, a federal agency, NEXA’s wholesale lender, a borrower, and NEXA’s own personnel." In an interview with HousingWire, NEXA CEO Mike Kortas stated that Dell’Abate had engaged in abusive behavior, including "cussing out" himself and other NEXA employees to a degree that necessitated blocking communication. Kortas expressed reluctance to sue loan officers but cited recorded complaints of Dell’Abate "screaming at account executives." The termination letter issued to Dell’Abate informed him that his ongoing loan applications would be transferred to Walter Brown, NEXA’s director of growth and retention, and that he would not be eligible for re-employment. The court filing details that Dell’Abate allegedly "refused to return NEXA’s loan files, leads, and customer information, publicly claimed that NEXA’s clients and files belonged to him, solicited and attempted to divert NEXA’s customers, published false statements accusing NEXA and its personnel of criminal and predatory conduct, and subjected NEXA’s employees to a course of harassing and abusive communications, all in violation of his contractual, statutory, and common law obligations." The lawsuit further outlines Dell’Abate’s post-termination attempts to contact NEXA via email, asserting ownership of NEXA’s "self-generated pipeline" and demanding specific actions. NEXA Lending is a mortgage lending company. The specific nature of the trade secrets allegedly misappropriated has not been detailed in the initial filing, but the company asserts that Dell’Abate's actions have caused significant harm to its business relationships and reputation. The legal proceedings are ongoing, with the court expected to rule on the allegations in the coming months.