[SendDocsPlox]

https://ag.ny.gov/press-release/2024...tion-targeting

Thoughts?

[abfunders]

As far as "impartiality of the law" is concerned, this press release was a constant presumption of guilt. I had problems with the article, and I had ChatGPT and Gemini read it to make sure I wasn't crazy and this was the analysis of problems, here's what we came out with:

- Strong and prejudicial Language used: "illegal" "fraudulent" "scheme"
- Focused negativity on alleged wrong-doing, ignoring balanced information
- Presenting the Attorney General's perspective as fact
- Seeking immediate remedies rather than waiting for trial

Press-releases are one-sided by nature, this one takes the cake.

[ridextreme]

03/05/2024

PEOPLE OF THE STATE OF NEW YORK, by
LETITIA JAMES, Attorney General of the
State of New York,
Petitioner,


-against YELLOWSTONE CAPITAL LLC, FUNDRY
LLC, DELTA BRIDGE FUNDING LLC,
CLOUDFUND LLC, ABC MERCHANT
SOLUTIONS, LLC, ADVANCE MERCHANT
SERVICES LLC, BUSINESS ADVANCE
TEAM LLC, CAPITAL ADVANCE SERVICES
LLC, CAPITAL MERCHANT SERVICES, LLC,
CASH VILLAGE FUNDING LLC, FAST CASH
ADVANCE LLC, FUNDZIO LLC, GREEN
CAPITAL FUNDING LLC, HFH MERCHANT
SERVICES LLC, HIGH SPEED CAPITAL
LLC, MERCHANT CAPITAL PAY LLC,
MERCHANT FUNDING SERVICES LLC,
MIDNIGHT ADVANCE CAPITAL LLC, MR.
ADVANCE CAPITAL LLC, OCEAN 1213 LLC,
SIMPLY EQUITIES LLC, TVT CAP FUND
LLC, TVT CAPITAL HR, LLC, THRYVE
CAPITAL FUNDING LLC, WCM FUNDING
LLC, WEST COAST BUSINESS CAPITAL,
LLC (f.k.a. YELLOWSTONE CAPITAL WEST
LLC), WORLD GLOBAL CAPITAL LLC
(including each entity captioned herein doing
business under any other name), DAVID
GLASS, YITZHAK (“Isaac”) STERN, JEFFREY
REECE, BARTOSZ (“Bart”) MACZUGA,
VADIM SEREBRO, TSVI (“Steve”) DAVIS,
AARON DAVIS, MATTHEW MELNIKOFF,
MARK SANDERS, and DAVID SINGFER,
Respondents


c. Ordering Respondents to cease all collection of payments on MCAs
pending the hearing of this Petition;
d. Declaring void and ordering rescission of each of Respondents’
usurious, fraudulent, and illegal agreements;
e. Ordering Respondents to file papers sufficient to obtain vacatur of all
judgments obtained by them pursuant to such agreements;
f. Staying all marshals, sheriffs, and collection agents from executing or
collecting upon such judgments;
g. Ordering Respondents to apply for dismissal of all pending court
proceedings concerning such agreements

[mca2150]

03/05/2024

PEOPLE OF THE STATE OF NEW YORK, by
LETITIA JAMES, Attorney General of the
State of New York,
Petitioner,


-against YELLOWSTONE CAPITAL LLC, FUNDRY
LLC, DELTA BRIDGE FUNDING LLC,
CLOUDFUND LLC, ABC MERCHANT
SOLUTIONS, LLC, ADVANCE MERCHANT
SERVICES LLC, BUSINESS ADVANCE
TEAM LLC, CAPITAL ADVANCE SERVICES
LLC, CAPITAL MERCHANT SERVICES, LLC,
CASH VILLAGE FUNDING LLC, FAST CASH
ADVANCE LLC, FUNDZIO LLC, GREEN
CAPITAL FUNDING LLC, HFH MERCHANT
SERVICES LLC, HIGH SPEED CAPITAL
LLC, MERCHANT CAPITAL PAY LLC,
MERCHANT FUNDING SERVICES LLC,
MIDNIGHT ADVANCE CAPITAL LLC, MR.
ADVANCE CAPITAL LLC, OCEAN 1213 LLC,
SIMPLY EQUITIES LLC, TVT CAP FUND
LLC, TVT CAPITAL HR, LLC, THRYVE
CAPITAL FUNDING LLC, WCM FUNDING
LLC, WEST COAST BUSINESS CAPITAL,
LLC (f.k.a. YELLOWSTONE CAPITAL WEST
LLC), WORLD GLOBAL CAPITAL LLC
(including each entity captioned herein doing
business under any other name), DAVID
GLASS, YITZHAK (“Isaac”) STERN, JEFFREY
REECE, BARTOSZ (“Bart”) MACZUGA,
VADIM SEREBRO, TSVI (“Steve”) DAVIS,
AARON DAVIS, MATTHEW MELNIKOFF,
MARK SANDERS, and DAVID SINGFER,
Respondents


c. Ordering Respondents to cease all collection of payments on MCAs
pending the hearing of this Petition;
d. Declaring void and ordering rescission of each of Respondents’
usurious, fraudulent, and illegal agreements;
e. Ordering Respondents to file papers sufficient to obtain vacatur of all
judgments obtained by them pursuant to such agreements;
f. Staying all marshals, sheriffs, and collection agents from executing or
collecting upon such judgments;
g. Ordering Respondents to apply for dismissal of all pending court
proceedings concerning such agreements

) 1 West Financial
2) 24 Capital
3) ABC Merchant Solutions
4) Accel Capital Services
5) Blue Rock Capital
6) Cardinal Advance
7) Cardinal Funding
8) Citi Cap
9) Clara Capital
10)Crestmont Capital
11)Direct Capital Source
12)EIN Cap
13)Everlasting Capital
14)Fast Cash Advance
15)Fast Cash Funding
16)Fastline Capital
17)Flash Advance
18)Fortress Advance
19)Funderslink
20)Fundit Lending Solutions
21)Fundkite Funding
22)Fundworks
23)Grand Capital Funding
24)Ibex Funding Group
25)Ifundco
26)Karish Funding
27)Main Street Merchant Services
28)Mainstreet Capital Group
29)Mass Capital Funding
30)New Era Advance
31)One Funder
32)One World Funding
33)PBS Capital
34)Prosperum Funding
35)RBS Funding
36)RTR Funding
37)Richmond Funding
38)SBG Funding
39)Samson Advance
40)Simple Funding Solutions
41)Smart Business High Risk
42)Sprout Funding
43)Standard Financing
44)Three Tree Funding
45)Velocity Capital Group
46)Velocity Funding Group
47)Westwood Funding
48)Yes*Funding

[JustInCase]

[abfunders]

Guys wondered how they got got stacking? lol This case will prevail as it is civil which has an evidence barrier much lower than reasonable doubt in criminal proceeding. This also brings liability to the white label as conspirators in a RICO case which would most likely occur. They will start cracking all the lower fruit to gain access to leadership roles. Same story as most cases but different industry. All of the - Strong and prejudicial Language used: "illegal" "fraudulent" "scheme" is ground work for future indictments.

Um..... did anyone notice that the list on Page 23 is World Global Capital LLC?
"Richmond Funding" "Karish Funding" "Yes Funding" "Everlasting Capital" "24 Capital" "1 West"
Whoever owns these took names of other companies, copied them to be similar to do .... something.
Richmond Capital, Karish Kapital, Yes Funder, Everlasting Capital is in NH, 24 Capital Advance, and 1 West is a DBA of Jaydee Ventures.
(I see Velocity on there too, I'm not sure what their company is truly called.)

The real TVT is TVT Capital LLC, and this lawsuit is against TVT Capital HR and TVT Cap Fund.

[JustInCase]

[Michael I]

crazy that there seems to be non owners on the list . Am i missing something ?
https://iapps.courts.state.ny.us/nys...sultsPageNum=1

[Shorebird]

They are probably done and it would be interesting if any of them post here ever again. But, if true, the level of fraud and deceit surpasses Par Funding. I guess all that money needs to go back.

[Loading]

Look at page 23 for the full lender list

1) 1 West Financial
2) 24 Capital
3) ABC Merchant Solutions
4) Accel Capital Services
5) Blue Rock Capital
6) Cardinal Advance
7) Cardinal Funding
8) Citi Cap
9) Clara Capital
10)Crestmont Capital
11)Direct Capital Source
12)EIN Cap
13)Everlasting Capital
14)Fast Cash Advance
15)Fast Cash Funding
16)Fastline Capital
17)Flash Advance
18)Fortress Advance
19)Funderslink
20)Fundit Lending Solutions
21)Fundkite Funding
22)Fundworks
23)Grand Capital Funding
24)Ibex Funding Group
25)Ifundco
26)Karish Funding
27)Main Street Merchant Services
28)Mainstreet Capital Group
29)Mass Capital Funding
30)New Era Advance
31)One Funder
32)One World Funding
33)PBS Capital
34)Prosperum Funding
35)RBS Funding
36)RTR Funding
37)Richmond Funding
38)SBG Funding
39)Samson Advance
40)Simple Funding Solutions
41)Smart Business High Risk
42)Sprout Funding
43)Standard Financing
44)Three Tree Funding
45)Velocity Capital Group
46)Velocity Funding Group
47)Westwood Funding
48)Yes Funding

[Chambo]

This isnt good news on this rainy day, that's for sure

[Ocean Funding]

Brokers gotta be having a field day on the amount of leaked deals in that lawsuit lol should be redacted
also lol @ all the white labeled "funders" under delta

[SendDocsPlox]

A lot of familiar names here fellas

Really activates your almonds

[abfunders]

You don't need "daily logins." The correct solution to avoid this lawsuit in the first place is to develop a monitoring like what Fundkite did and have weekly automatic reconciliation, for the good or bad (or you can cap it). Or go back to CC splits.

[Shorebird]

Redact what? It's all public record.

[SendDocsPlox]

"The perpetrators of this scheme provided contracts that fraudulently described each transaction as a purchase of a portion of a merchant’s future revenues, with flexible payment amounts and open-ended terms. In reality, the predatory lenders collected payments at fixed daily amounts, which they debited directly from merchants’ bank accounts over short repayment terms, such as 60 or 90 days."

This is the real alarm bell ringing here

Get ready for daily logins for those ACH debits lol

[Chambo]

"The perpetrators of this scheme provided contracts that fraudulently described each transaction as a purchase of a portion of a merchant’s future revenues, with flexible payment amounts and open-ended terms. In reality, the predatory lenders collected payments at fixed daily amounts, which they debited directly from merchants’ bank accounts over short repayment terms, such as 60 or 90 days."

This is the real alarm bell ringing here

Get ready for daily logins for those ACH debits lol

You can still do dailies, but you will need to reconcile with the merchant constantly, and the dailies cannot go over a certain % of receipts.

But really, lockbox and the split funding will make a HUGE comeback

[Franklin]

You can still do dailies, but you will need to reconcile with the merchant constantly, and the dailies cannot go over a certain % of receipts.

But really, lockbox and the split funding will make a HUGE comeback

Lockboxes and split funding were such a pain in the neck. It adds more time to completing the deal, more coordination with more people now (sales and tech) and more selling and coercing to get the merchant to switch processors when necessary, (which was never a 100% sure thing even when justified), all of this leading to lost deals.


I think it'll be more efficient to setup some weekly reconciliation, with an automatic refund at the end of each week as needed.


There are additional ramifications the suit doesn't mention that could possibly come out during discovery and open an even bigger "can" for these companies, but I won't be adding any fuel to this fire.






www.UccRadar.com - Large sales volume merchants, filling out your application.

[closer129]

Lockboxes and split funding were such a pain in the neck. It adds more time to completing the deal, more coordination with more people now (sales and tech) and more selling and coercing to get the merchant to switch processors when necessary, (which was never a 100% sure thing even when justified), all of this leading to lost deals.


I think it'll be more efficient to setup some weekly reconciliation, with an automatic refund at the end of each week as needed.


There are additional ramifications the suit doesn't mention that could possibly come out during discovery and open an even bigger "can" for these companies, but I won't be adding any fuel to this fire.






www.UccRadar.com - Large sales volume merchants, filling out your application.

probably 20% of my companies book are cc splits via direct or a lockbox. It is not hard at all to set these up and sell the merchant. The issue is most brokers do not know how to sell and do not care about the merchant they just want to push either the easiest deal or most money or both and not have to wait a few extra days to get paid. If more brokers did the right thing they would sell more deals and have a bigger book of renewals because the merchant wont bounce a ton of payments on the set high ac payment.

[abfunders]

Lockboxes and split funding were such a pain in the neck. It adds more time to completing the deal, more coordination with more people now (sales and tech) and more selling and coercing to get the merchant to switch processors when necessary, (which was never a 100% sure thing even when justified), all of this leading to lost deals.


I think it'll be more efficient to setup some weekly reconciliation, with an automatic refund at the end of each week as needed.

Lockboxes are definitely harder to set up, which is why ACH same-day funding became popular. Then people started taking advantage of this and now we're in this mess. Franklin, come up with a system to do the remitting and sell it. Fundkite came up with a system, I don't think they're interested in selling it, but it's certainly the best of both worlds. Also, add an option for "ceiling", I don't think that Fundkite does that. It mirrors CC splits and Fundbox, but the only thing is that you need to convince the merchant to allow the Plaid link to their bank account to stay for the course of the advance. If a funder would be smart, they'd also allow for add-ons (like TMR and Quikstone) to separate themselves from the pack to give that extra reason to stay with them. (Also, because there's monitoring, keeps them on their honor not to stack....)

[closer129]

Lockboxes are definitely harder to set up, which is why ACH same-day funding became popular. Then people started taking advantage of this and now we're in this mess. Franklin, come up with a system to do the remitting and sell it. Fundkite came up with a system, I don't think they're interested in selling it, but it's certainly the best of both worlds. Also, add an option for "ceiling", I don't think that Fundkite does that. It mirrors CC splits and Fundbox, but the only thing is that you need to convince the merchant to allow the Plaid link to their bank account to stay for the course of the advance. If a funder would be smart, they'd also allow for add-ons (like TMR and Quikstone) to separate themselves from the pack to give that extra reason to stay with them. (Also, because there's monitoring, keeps them on their honor not to stack....)

Thank you for that little shout out.

Going into some ones bank every week and seeing what they deposited to see what the sales is not very cost efficient. You will need to hire more people to just handle that job and then the cost of the money will need to go up. If you go into the bank and the prior week was higher and you raise the payment for the next week but if the sales during the next week or lower it can cause the payment for the next week to bounce. When you take into consideration the merchants daily balances and their profit margins and do not go over a certain percentage of the gross there should never be an issue of the remit having to be changed week to week. When you are going out over 25% of the merchants gross and see that they keep more in the bank on a daily basis than than the payment then that is not a good thing and there will always be issues with the payments.

[mistamca]

Lockboxes are definitely harder to set up, which is why ACH same-day funding became popular. Then people started taking advantage of this and now we're in this mess. Franklin, come up with a system to do the remitting and sell it. Fundkite came up with a system, I don't think they're interested in selling it, but it's certainly the best of both worlds. Also, add an option for "ceiling", I don't think that Fundkite does that. It mirrors CC splits and Fundbox, but the only thing is that you need to convince the merchant to allow the Plaid link to their bank account to stay for the course of the advance. If a funder would be smart, they'd also allow for add-ons (like TMR and Quikstone) to separate themselves from the pack to give that extra reason to stay with them. (Also, because there's monitoring, keeps them on their honor not to stack....)

I've been playing around with this idea for a while. It's not that difficult to have a system to do the heavy lifting but the devil is in the details and categorizing revenue has always been a bit problematic and credit unions are just not fun

[Chambo]

One thing that'll come out of this. All the extra fees and "surprise PSFs" will go away

As well as the 30 day 1.499's

[dailyfunderppt]

Is this the result of the wording in their contracts itself that caused this shake up?

[abfunders]

Is this the result of the wording in their contracts itself that caused this shake up?

This is honestly old news from 2020. The question is only if the reconciliation clause was truly honored. Top of page 46, and onwards from point 126. It appears that their main push is that they were using "what fixed daily can they afford?" to underwrite the files (point 142) and the "Specified Percentage" was an estimate and nobody bothered to actually hone in on that. The question remains, if the merchant can send in statements and can reconcile later, what's the problem? The AG has to prove that the defendants acted in bad faith.

I don't follow number 158. No funder is obligated to underwrite in a way that the AG says that they must. The AG claims that higher amounts automatically means lower specified percentage. No, it's my investment/purchase, I don't want to buy $150k for $100k if it's going to take me a few years to collect it. Specified Percentage is a reverse calculation, and the AG wants underwriters to think like her, otherwise it's a loan? Very shaky here.

I'm skimming through most of it, but it does appear that most of the rest from 169 and onwards is that Yellowstone/Delta Bridge did very little

The AG is also worried that reconciliation demands refunds. If they took a ceiling of 15% of the daily, and really it was 25%, then they should send back the other 10%.


---

From page 178 is gets interesting:
FRAUD with merchants.

On page 189, #519, if true, is again, a big problem. These are VERY OLD stories, though, if they cleaned up their act or not? You have to check with them.

Then Page 183 is SUPER INTERESTING: Bait and switch! The AG is suing Yellowstone for the promises of lines of credit by brokers, and not enough safeguards or oversight.

---

BTW, a ton of this stuff complaints about Jon Braun and Steve Davis who have long left the company, and after the rebranding and changing habits and reforms, the AG won't let them off the hook. "You're the same Yellowstone, just an extension." Suing them under a statute of limitations clause. That opens up a HUGE can of worms, not sure how to think about that one. Close shop and never do business again because one of your employees that you fired was a fraud?