Here, Provident alleges that the Itria Parties' conduct consisted not simply of omissions but of active concealment of critical information and affirmative misrepresentations of material fact. Importantly, if a customer has insufficient future receivables, then the funds borrowed from Itria do not need to be paid back, the case says. NYSCEF DOC. The funds were deposited into a TD Bank account in the name of Lotus Exim, with an account number ending in -1975 (the 1975 Account) (id., 19). The flood receded when New York courts stopped accepting electronic filings in nonessential matters on March 23. Thus, Provident reasonably relied on the Itria Parties' misrepresentations in making the loan to Lotus Exim and in continuing to extend additional financing, and that it would not have done so but for the Itria Parties' fraudulent conduct and would have frozen all advances and pursued its available remedies if it was not defrauded (id., 152, 153, 158, 159). They are filed without a business' knowledge; merchants often learn about them when they try to pay their employees and find their accounts blocked, the lawyers say. Companies often choose to make the filings in New York state, because its statute is powerful and easy to use. On March 23, Kayla Kight, a server at a Lone Spur in Prescott, Arizona, told NBC News that hers was the only restaurant in the group open for business and that it was just providing takeout. Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. Call the police I don't care.". Download the NBC News app for full coverage and alerts about the coronavirus outbreak. If you do not agree with these terms, then do not use our website and/or services. A debt settlement company being sued by Itria Ventures in Miami-Dade County, FL was asked to prove its claim that it has managed over $1.5 billion in total debt, court records show. "The FTC has to seriously look at rules that ban some of the most extortionate clauses in these loan contracts," he said, adding that the FTC is prepared to "go after some of the loan sharks and their lawyers who run lawsuit mills that are filing some of these sham collection actions.". Fraud and Civil Conspiracy The Itria Parties argue that the fraud claim and civil conspiracy to commit a fraud must be dismissed because (i) the allegations against the Itria Parties amount to omissions (i.e., passing along information from the borrower - Lotus Exim - which may have been false), and omissions cannot give rise to a claim for fraud absent a special relationship and there was no such special relationship between the Itria Parties and Provident, (ii) as a sophisticated party, Provident cannot establish justifiable reliance, and (iii) civil conspiracy is not recognized as a separate cause of action in New York. Mr. Arora and Corey Falkin, an employee of Itria, acting as representatives of Biz2Credit, introduced Lotus Exim to Provident (id., 28). In a return email, he said the firm had decided to stand down for the moment. That translates into $60,812.50 in interest in only 210 days or an annualized interest rate of approximately 43.29% which is well over any reasonable interest rate and fully criminally usurious, the complaint alleges. Date published: Sep 24, 2018. ), ITRIA VENTURES, LLC vs. NEW WORLD WHOLESALE INC., et al, Disposition: Judgment; Judicial Officer: MOYE', ERIC; Judgment Type: NON-SUIT/DISMISSAL BY PLAINTIFF / PETITIONER; Judgment: Total Judgment:; of $0.00: Awarded To:; ITRIA VENTURES, LLC: Awarded Against:; ITRIA VENTURES, LLC, DISMISSAL FOR WANT OF PROSECUTION; Judicial Officer: MOYE', ERIC; Hearing Time: 2:00 PM; Cancel Reason: CASE CLOSED, CITATION; Unserved: Anticipated Server; ESERVE: Anticipated Method; Comment: ADEEL MEMON, CITATION; Unserved: Anticipated Server; ESERVE: Anticipated Method; Comment: MAFHH DISTRIBUTOR #1 LLC, CITATION; Unserved: Anticipated Server; ESERVE: Anticipated Method; Comment: NEW WORLD WHOLESALE INC, Financial info for ITRIA VENTURES, LLC : CREDIT CARD - TEXFILE (DC); Receipt # 83073-2021-DCLK; ITRIA VENTURES, LLC $316.00, Financial info for ITRIA VENTURES, LLC : Transaction Assessment; ; $316.00, Financial: ITRIA VENTURES, LLC ; Total Financial Assessment $316.00 ; Total Payments and Credits $316.00. Itria recorded a UCC-1 Financing Statement to perfect its security interest (id., 18). An email to PowerUp requesting comment received no response. The 23-page lawsuit alleges Itria and affiliate broker Biz2Credit Inc. have fraudulently misrepresented loans as financing agreements, improperly sought payment outside of purportedly purchased future receivables and unlawfully charged criminally usurious interest rates on top of multiple acts of racketeering.. Itria is a financial services company engaged in the business of providing financing to its clients by making loans and purchasing accounts receivable (Third-Party Compl., 1). 595127/2019 Second Third-Party Index No. Under a typical deal, a business might receive $40,000 in exchange for agreeing to hand over $50,000 in future revenue over a few months. ITRIA VENTURES LLC, A DELAWARE LIMITED LIABILITY COMPANY VS GLOBAL NRGY LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, ET AL. Here, Provident alleges that Biz2Credit, at the direction of Itria and Mr. Arora, represented to Provident that Lotus Exim conducted business at three locations and owned all of the inventory at each location, together with the accounts receivable therefrom, with a total value of $6,000,000, and that it provided such materials and information to Provident to induce it to issue the line of credit to Lotus Exim (Third-Party Compl., 184-186). "Working with a broker, I thought he was going to get me a traditional loan that was how the conversation started," Runion said. REQUEST FOR ENTRY OF JUDGMENT IS CONDITINALLY GRANTED. D). Section 9-332 of the New York Uniform Commercial Code (the NY UCC) provides: "[a] transferee of money takes the money free of a security interest unless the transferee acts in collusion with the debtor in violating the rights of the secured party" (NY UCC 9-332 [a]). Legal filings by cash advance companies, including confessions of judgment filed against small businesses, have been ballooning amid the coronavirus crisis. 2023-01-27, Los Angeles County Superior Courts | Contract | For an optimal experience visit our site on another browser. REQUEST FOR ENTRY OF JUDGMENT IS CONDITINALLY GRANTED.On September 23, 2021, Plaintiff Itria Ventures, LLC filed the instant action against Defendants Kompugard, Inc. (Kompugard); Retail Management Solutions, Inc. (Retail Management); Ariel Goldenstein (Goldenstein) (collectively, Defendants); and Does 1 through 50. 47 6 [email protected] 042-532028 , 042-532027 Itria provided more than $5,600,000 in funding to Lotus Exim between May 2014 and December 2016 pursuant to the Pre-Closing FRSAs (id., 20). Itria is a financial services company engaged in the business of providing financing to its clients by making loans and purchasing accounts receivable (Third-Party Compl., 1). The St. Louis 22nd Judicial Circuit Court reported the following activities in the suit brought by Itria Ventures LLC against Derek Schulze and Red Oak Biscuit Llc on July 29: . ITRIA VENTURES - Trademark Details. For example, Provident alleges that it used its in-house field examiners and an outside auditing firm to conduct due diligence. Itria Ventures of New York City, an affiliate of Biz2Credit, is among the merchant cash advance companies that filed numerous lawsuits in March. And, Provident further alleges that the Itria Parties knowingly provided false information to Provident reflecting that Lotus Exim owned $6,000,000 of inventory between its three locations knowing that Provident would rely on this information in making its underwriting determination, with the intention of later claiming that the inventory was actually owned by three separate and distinct entities and did not belong to Lotus Exim. NO. Kalamata sued Biz2Credit and Itria for, among other things . The causes of action include fraud, civil and criminal usury, extortion, theft by false pretenses, and RICO allegations, among other things. In addition, the money that is the subject of a conversion claim "must be specifically identifiable and be subject to an obligation to be returned or to be otherwise treated in a particular manner" (Republic of Haiti v. Duvalier, 211 AD2d 379, 384 [1st Dept 1995]). The merchant cash advance agreements typically allow for these remedies. The complaint alleges that the companies offer future receivables purchases rather than loans, but that they renege on terms of the financing, charge usurious interest rates, and engage in racketeering. Sep 13, 2021 A large portion of the top local PPP lenders in 2021 are fintechs, Itria Ventures which together produced more than 51,000 loans in, Feb 19, 2020 Itria is a financial services company engaged in the business of providing financing to its clients by making loans and purchasing accounts, Sep 10, 2020 One in every four businesses that . "Normally we're usually really busy. Although civil conspiracy to commit fraud is not recognized as a separate cause of action in New York, a plaintiff asserting a fraud cause of action may allege that parties conspired together to commit the fraud (Hoeffner v Orrick, Herrington & Sutcliffe LLP, 85 AD3d 457, 458 [1st Dept 2011], citing MBF Clearing Corp. v Shine, 212 AD2d 478, 479 [1995]). Specifically, Provident alleges that the Itria Parties knew, at the time that they were helping to provide the Due Diligence Materials to Provident that (i) Itria had a 100% security interest in Lotus Exim's accounts receivable, (ii) Itria regularly provided funding to and received payments from Lotus Exim through the undisclosed 1975 Account, and (iii) neither Itria's funding nor Lotus Exim's obligations to Itria were disclosed on Lotus Exim's financial statements, which the Itria Parties provided to Provident (id.). LIVLAB INC, A CORPORATION VS RETAIL MANAGEMENT SOLUTIONS, INC, A CORPORATION, Retail Management Solutions, LLC v. Auto~Star Compusystems, Inc, ITRIA VENTURES LLC, A DELAWARE LIMITED LIABILITY COMPANY vs GLOBAL VISION ENTERPRISE CORP., A CALIFORNIA CORPORATION. SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PART IAS MOTION 53EFM. to transfer this lawsuit filed by the defendant, (Doc. According to the terms of the Pre-Closing FRSAs, Lotus Exim granted Itria a first priority, continuing security interest in 100% of Lotus Exim's future receivables, inventory, and other assets, and Lotus Exim was prohibited from selling, assigning, pledging, or transferring any of its receivables to any other party until Itria was paid in full for all funding provided to Lotus Exim (id., 13, 14). By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, This case was filed in Los Angeles County Superior Courts, Stanley Mosk Courthouse located in Los Angeles, California. (The suit is now on hold.). On March 27, NBC News contacted Bernard Feldman, a lawyer for PowerUp Lending, about the Indelicato case. The complaint alleges that Itria pushed false claims even after InvenTel began an Assignment for the Benefit of Creditors. The Complaint asserts causes of action for: (1) Breach of Written Contract (against Kompugard and Retail Management); and. Finally, one place to get all the court documents we need. Fraudulent Misrepresentation To state cause of action for fraudulent misrepresentation, "a plaintiff must allege 'a misrepresentation or a material omission of fact which was false and known to be false by defendant, made for the purpose of inducing the other party to rely upon it, justifiable reliance of the other party on the misrepresentation or material omission, and injury'" (Mandarin Trading Ltd., 16 NY3d at 178, quoting Lama Holding Co. v Smith Barney, 88 NY2d 413, 421 [1996]). ", When merchants fall behind on their payments, some direct lenders send threatening emails and texts, owners and their lawyers say. The suit further alleges Itrias standard loan contracts are fraudulently and deceptively designed and intended to mislead borrowers and courts into believing they are future receivables agreements when they are not. 14. And the best part of all, documents in their CrowdSourced Library are FREE! And, inasmuch as there is a cause of action for fraud (i.e., the sixth cause of action) the third cause of action is dismissed as duplicative of the sixth cause of action (fraudulent misrepresentation), however, the facts underlying the third cause of action may continue to be the basis for the remaining fraud claim asserted. Merchants like Indelicato have been hammered by the coronavirus outbreak. . Biz2Credit, Itria Ventures LLC and John Does 1-10 are collectively referred to as "Itria". abbvie ceo richard gonzalez wife; how far is haddonfield, illinois from chicago Fill out this form for a FREE and prompt case evaluation. Itria filed its lawsuit against that client on March 19 in a New York court for $282,000. 007) pursuant to CPLR 3211 (a) (1) and (7) to dismiss the third (fraud and civil conspiracy), fourth (negligent misrepresentation), and sixth (fraudulent misrepresentation) causes of action asserted in Provident Bank's (Provident) Amended Answer, Defenses, Counterclaim, and Third Party Complaint (the Third-Party Complaint) is granted solely to the extent that the third cause of action is dismissed as set forth herein, the fourth cause of action is dismissed without prejudice and the sixth cause of action is sustained as a fraud claim, but is otherwise denied. 2023-01-25. Cancellation and Refund Policy, Privacy Policy, and But in this case, Provident alleges that it did make use of the means of verification that were available to it. Paul and his team were very transparent during the entire process. Pursuant the Pre-Closing FRSAs, Itria extended financing to Lotus Exim by factoring Lotus Exim's accounts receivable (id.). 2/19/2020, 2020 N.Y. Slip Op. Public Records Policy. Corrado Rizzi is the Senior Managing Editor of ClassAction.org. Itria Ventures of New York City, an affiliate of Biz2Credit, is among the merchant cash advance companies that filed numerous lawsuits in March. Los Angeles County Superior Courts | Contract | The complaint contends that, since the transactions were loans and the rates of interest were usurious, they are considered to be unlawful debt under US RICO laws.. For this first loan, the plaintiff was required to pay back to Itria $305,000 at a rate of $1,452.38 per day, the suit says. Among other things to perfect its security interest ( id., 18.! Global NRGY LLC, a lawyer for PowerUp Lending, about the coronavirus outbreak and paying taxes to! To as & quot ; because its statute is powerful and easy to use that client on March 23 Rizzi... 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