The latest chapter in the legal battles between Nexa Mortgage cofounders favored Mat Grella and his company, Platinum One Lending, as a Michigan judge dismissed Nexa CEO Mike Kortas' claims.

Judge Michael Warren ruled that $350,000 transferred to Platinum One was an equity investment from Nexa, not a loan, like Kortas claimed. He also awarded Platinum One more than $281,000 in treble damages in a 14-page opinion last week.

"I am pleased with [the] ruling and the judge's recognition of the facts of the case," Grella said. "I look forward to continuing to prove the validity of his position in all other pending litigation."

Nexa did not respond to a request for comment.

Warren also found Kortas' testimony lacked credibility, saying it was given "absolutely zero weight and credibility."

"Kortas's phenomenal success in the mortgage industry is indisputable. However, his success in re-writing history is less so," the judge wrote. "His flippant attitude towards documentation, including tax returns signed under penalty of perjury, that contradicts his version of the past is only matched by his arrogance."

Warren added that Kortas' motivation in this case was driven by ego and vindictiveness against his old partner.

The tension between Kortas and Grella arose from their business divorce in March 2024 following a disagreement over the company's aircraft purchases. Kortas, who owned 50.5% of the company to Grella's 49.5% stake, terminated Grella's employment and disassociated him as a member of Nexa. Kortas became 100% owner, according to the filing.

A few months after the separation, Nexa claimed a $350,000 investment in Platinum One was actually a loan and the company was required to repay it, although tax returns and accounting records identified it as capital contributions. Platinum One disputed that characterization, and maintained the funds were equity investments from Kortas and Grella when they jointly controlled Nexa.

Kortas then tried to pressure a Platinum One manager to sign a backdated $280,000 promissory note under threat of a lawsuit, before the Nexa CEO breached his fiduciary duties by transferring more than $93,000 from Platinum One's bank account to Nexa, the document said.

The disagreement escalated into litigation, as Platinum One sought damages and NEXA claimed the investment was a loan.

"[Kortas] does not care if he commits perjury in his tax filings or before the court," Warren wrote. "His testimony was mostly lies."

This is one of many lawsuits between the two sides, as Kortas first accused Grella of a number of infractions, including compromising the purchase of a $24 million hangar office property.

Nexa also sued a former director in May for allegedly stealing information related to its educational materials and attempting to poach employees.