Attorney General James Sues Predatory Lender That Threatened Violence and Kidnapping, and Illegally Collected Millions from Small Businesses

Posted to Applied Web NY on Wed, 06/10/2020 - 17:02

NEW YORK – New York Attorney General Letitia James today filed a lawsuit seeking to stop three New York City-based companies and the owners and managers of those companies from continuing to cheat small businesses in New York and across the country out of millions of dollars each year by selling these small business owners “merchant cash advances,” or fraudulent, sky-high interest loans. In papers filed in New York County State Supreme Court, Attorney General James charges the three companies — Richmond Capital Group, Ram Capital Funding, and Viceroy Capital Funding (the Richmond companies) — with illegally loaning money to small business owners at astronomically-high interest rates, fraudulently charging undisclosed fees, debiting excess amounts from merchants’ bank accounts, and obtaining judgments against merchants by filing false affidavits in New York State courts. Additionally, Richmond Capital and Ram Capital are being charged with harassing and threatening merchants with violence and legal action, in an attempt to force them to pay off the loans. The lawsuit — filed after an 18-month-long investigation — alleges that the companies have, since 2015, collected over $75 million on more than 1,900 fraudulent, illegal loans.

Bulletin assigned to: