This case involves two small business owners that believe they were defrauded by a bank that lent them money through Payday Loan Credits and an agent that was acting in the bank’s interests. The plaintiffs are owners of a restaurant that formed an LLC. Both plaintiffs had personal loans and they were interested in real estate and commercial properties in their area to invest in. After negotiating loans with the bank, the plaintiffs alleged that there were obstacles hindering the construction of a funeral home after they had already agreed on the deal and started construction at the site. The bank claimed that the obstacles were because the plaintiffs did not have clear title to the property, due to a small encroachment on the property. The plaintiffs alleged that they were led to believe this was not a major issue and no mention of the encroachment was made until after construction had begun for the restaurant. The plaintiffs alleged the bank left them with no other position but to file bankruptcy. There is an attorney who was named as a defendant, as well, and that he was supposed to use his real estate background to help facilitate the project. The plaintiffs alleged that the attorney mismanaged and fraudulently shifted funds from business accounts to his personal accounts. Additionally, the attorney signed loan papers at the defendant bank without the plaintiff’s knowledge, and other parties close to the attorney approved loans to the attorney in the name of the LLC.
