Small businesses have borrowed billions from unregulated merchant cash advance companies. He said the companies have almost killed his business. 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. Biz2Credit did not, however, disclose that Itria owned 100% of Lotus Exim's accounts receivable pursuant to the Pre-Closing FRSAs (id., 30). Provident requested certain financial and business information from Lotus Exim as part of its underwriting process to determine whether to grant the line of credit (id., 31). 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). No. "I tried to make it work," he said, "but I really was unable to.". Rohit Arora, Biz2Credit's co-founder and chief executive, said in a telephone interview: "In some cases, we have to file these cases, but we also try to work with our customers. In mid-2018, Runion, an oral surgeon, wanted to add a second location to his practice and had initial approval from a bank for financing. Itria filed its lawsuit against that client on March 19 in a New York court for $282,000. 595127/2019 Second Third-Party Index No. As with many small business owners, he has closed his stores because of the coronavirus pandemic, and his revenues have disappeared. itria ventures itria ventures llc itria ventures llc itria itria llc itriaventures Itria Ventures Global Presence Search All Employees Key Employees of Itria Ventures Jonathan Gitlin General Counsel Phone Email "Their strategy was always to get more," he said. As alleged in the Third-Party Complaint, the Itria Parties knowingly and intentionally provided Due Diligence Materials to Provident that were materially false and misleading. 2023-01-27, Los Angeles County Superior Courts | Contract | 2023-01-06. But since the 2008 recession, they have struggled to get loans from commercial banks, which prefer to deal with bigger borrowers. Download the NBC News app for full coverage and alerts about the coronavirus outbreak. Contact/Customer Service phone number: (302) 295-3828 Headquarters: 1000 N West St Ste 1200, Wilmington, Delaware, 19801, United States ; Phone Number: (302) 295-3828 ; Website: www.itriaventures.com ; Revenue: $6 ABOUT PPP LOAN FUNDING All Biz2Credit originated PPP loans are funded by Biz2Credit's funding affiliate, Itria Ventures, LLC. Therefore, the Investors' motion to dismiss the conversion claim is granted. The document does not provide a reason for the dismissal. Co. of New York, 98 NY2d 314, 326 [2002]). PROVIDENT BANK Plaintiff, v. BIZ2CREDIT INC., RAMIT AURORA, HIGHCREST CAPITAL, LLC, JIFFER SMALL BUSINESS LENDING FUND, LP, MARKETPLACE SPV, LLC, PRIME MERIDIAN CAPITAL MANAGEMENT, LLC, RANGER DIRECT LENDING FUND TRUST Defendant. to transfer this lawsuit filed by the defendant, (Doc. 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, NOTICE OF DISMISSAL FOR WANT OF PROSECUTION; Comment: MAILED, DispositionDisposition: 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, DocketDISMISSAL FOR WANT OF PROSECUTION; Judicial Officer: MOYE', ERIC; Hearing Time: 2:00 PM; Cancel Reason: CASE CLOSED, DocketNOTICE OF DISMISSAL FOR WANT OF PROSECUTION; Comment: MAILED, DocketCITATION; Unserved: Anticipated Server; ESERVE: Anticipated Method; Comment: ADEEL MEMON, DocketCITATION; Unserved: Anticipated Server; ESERVE: Anticipated Method; Comment: MAFHH DISTRIBUTOR #1 LLC, DocketCITATION; Unserved: Anticipated Server; ESERVE: Anticipated Method; Comment: NEW WORLD WHOLESALE INC, FinancialFinancial info for ITRIA VENTURES, LLC : CREDIT CARD - TEXFILE (DC); Receipt # 83073-2021-DCLK; ITRIA VENTURES, LLC $316.00, FinancialFinancial info for ITRIA VENTURES, LLC : Transaction Assessment; ; $316.00, FinancialFinancial: ITRIA VENTURES, LLC ; Total Financial Assessment $316.00 ; Total Payments and Credits $316.00, Riverside County Superior Courts | Contract | The Itria Parties argue that Provident merely alleges that the Itria Parties failed to disclose certain documents and information, which amounts, at most, to acts of omission rather than affirmative misrepresentations, and that the fraud claim must therefore be dismissed because there is no special relationship between Itria Parties and Provident. Yolanda Orozco in Department 31 Stanley Mosk Courthouse, DocketComplaint; Filed by: Itria Ventures LLC, a Delaware limited liability company (Plaintiff); As to: Kompugard, Inc., a California Corporation (Defendant); Retail Management Solutions, Inc., a Delaware Corporation (Defendant); Ariel Goldenstein (Defendant), DocketSummons on Complaint; Issued and Filed by: Itria Ventures LLC, a Delaware limited liability company (Plaintiff); As to: Kompugard, Inc., a California Corporation (Defendant); Retail Management Solutions, Inc., a Delaware Corporation (Defendant); Ariel Goldenstein (Defendant), DocketCivil Case Cover Sheet; Filed by: Itria Ventures LLC, a Delaware limited liability company (Plaintiff); As to: Kompugard, Inc., a California Corporation (Defendant); Retail Management Solutions, Inc., a Delaware Corporation (Defendant); Ariel Goldenstein (Defendant), DocketNotice of Case Assignment - Unlimited Civil Case; Filed by: Clerk, Case Number: *******7216 Hearing Date: November 29, 2021 Dept: 31. Itria Ventures of New York City, an affiliate of Biz2Credit, is among the merchant cash advance companies that filed numerous lawsuits in March. Itrias dissemination of the alleged contracts electronically and by mail constitutes mail and wire fraud, the lawsuit alleges. To properly assert a cause of action for conversion, a plaintiff must allege (i) that the plaintiff has a possessory right or interest in the subject property, and (ii) the defendant has exercised dominion and control over the property or otherwise interfered with it, in violation of the plaintiff's right of possession (id., at 50). 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. by Corrado Rizzi -Defendants Parker and Gitlin are attorneys who represented Itria Ventures in enforcing the allegedly forged documents. To establish a special or privity-like relationship, a plaintiff "must show either privity of contract between the plaintiff and the defendant or a relationship 'so close as to approach that of privity'" (Sykes v RFD Third Ave. 1 Assocs., LLC, 15 NY3d 370, 372 [2010], quoting Ultramares Corp. v Touche, 255 NY 170, 182-183 [1931] [Cardozo, J.]). ITRIA VENTURES LLC, A DELAWARE LIMITED LIABILITY COMPANY VS KOMPUGARD, INC., A CALIFORNIA CORPORATION, ET AL. itria ventures ppp forgiveness. During the three-week period, Itria filed suit against 20 small businesses for nonpayment, court records show, most of them outside the state. The class for this action is all persons or entities who borrowed money from Itria Ventures or Biz2Credit using a nominal future receivables sale agreement or similar arrangement, between February 8, 2018 and February 8, 2022, whose funding was treated as a loan by Itria and Bz2Credit who sought repayment under all circumstances, even when the percentage of receivables set forth in the contract is less than the nominal daily amount of repayment. Provident also alleges that Mr. Arora represented that he would personally go to TD Bank to close the non-Provident accounts, but he never did, and continued funneling payments through these accounts (id., 94-95). 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. UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. And, significantly, there are no allegations that the funds were segregated or otherwise specifically identifiable (id.). If you do not agree with these terms, then do not use our website and/or services. Runion said he told the cash advance companies that he didn't have the money to pay them. On March 15, the governor of Ohio ordered an end to all oral surgery procedures; Runion's practice is now open six to eight hours a week. Inasmuch as the Itria Parties argue that the third cause of action impermissibly seeks to assert a claim for civil conspiracy as a separate cause of action, the argument misconstrues the pleadings. However, the complaint alleges, Itria insisted on repayments no matter what. amarillo by morning glen campbell; somers, ct real estate transactions; j'ai vu l'enfer et le paradis; coventry gangster jailed; kowalczyk funeral home obituaries; morryde door latch extender; sea run cutthroat nehalem river; Guar. Hurt bad," one text said. Indelicato said he began dealing with merchant cash advance companies around 2016, when he wanted to expand his business and needed more money than his conventional bank loan could provide. It also alleges Itria took wrongful, harmful and extortive acts to try to collect. NBC News reviewed some of the communications, including videos of a visit by a collection agent to a borrower's home and another to a borrower's office by an expletive-spewing man trying to collect on a loan. He didn't talk too much about how it was secured or the workings of it.". NOTICE OF DISMISSAL FOR WANT OF PROSECUTION, Cases involving agreements to pay a specific amount of money (promissory notes, loan and credit card agreements, checks, etc. Mr. Arora estimated that at least 20 percent of the nearly 140,000 loans the. Accordingly, it is ORDERED that Itria Ventures LLC, Biz2Credit Inc., and Ramit Arora's motion to dismiss the third (fraud and civil conspiracy), fourth (negligent misrepresentation), and sixth (fraudulent misrepresentation) causes of action asserted in Provident Bank's Amended Answer, Defenses, Counterclaim, and Third Party Complaint is granted solely to the extent the fourth cause of action is dismissed without prejudice and is otherwise denied; and it is further ORDERED that the third-party defendants are directed to serve an answer to the complaint within 20 days after service of a copy of this order with notice of entry; and it is further ORDERED that Jiffer Small Business Lending Fund, LP, Marketplace SPV, LLC, Prime Meridian Capital Management, LLC and Ranger Direct Lending Fund Trust's motion to dismiss the fifth cause of action (conversion) asserted in Provident Bank's Amended Answer, Defenses, Counterclaim, and Third-Party Complaint is granted and the fifth cause of action is dismissed without prejudice, and the Clerk is directed to enter judgment accordingly in favor of said third-party defendants; and it is further ORDERED that the action is severed and continued against the remaining third-party defendants; and it is further ORDERED that the caption be amended to reflect the dismissal and that all future papers filed with the court bear the amended caption; and it is further ORDERED that counsel for the moving party shall serve a copy of this order with notice of entry upon the Clerk of the Court (60 Centre Street, Room 141B) and the Clerk of the General Clerk's Office (60 Centre Street, Room 119), who are directed to mark the court's records to reflect the change in the caption herein; and it is further ORDERED that such service upon the Clerk of the Court and the Clerk of the General Clerk's Office shall be made in accordance with the procedures set forth in the Protocol on Courthouse and County Clerk Procedures for Electronically Filed Cases (accessible at the "E-Filing" page on the court's website at the address www.nycourts.gov/supctmanh). Although Itrias standard contract explicitly states that the company assumes the risk that future receivables may not be available from a customer, it is clear, the lawsuit alleges, that the company actually assumes no risk, and deems all loaned funds to be due and payable under all conditions. It contains no artificial flavors, preservatives or added colors from artificial sources. Here, critically, the Third-Party Complaint fails to allege that the Investors colluded with Lotus Exim or the Itria Parties. In a return email, he said the firm had decided to stand down for the moment. Although a plaintiff asserting a cause of action for fraud based on the defendant's alleged omissions must establish a fiduciary relationship between the parties (EBC I, Inc. v Goldman Sachs & Co., 91 AD3d 211, 219 [1st Dept 2011]). Biz2Credit and each Funder and Funder Party shall be entitled to rely upon the accuracy and completeness of such Information and Documents provided by or on behalf of Customer, and Biz2Credit is not . Read our Newswire Disclaimer. In one case, Itria filed a suit within days of a Florida business missing a payment. Itria is engaged in the business of providing financial accommodations to its customers. April 2019: How Mulvaney undid consumer protections from predatory lenders. Taken as true, the allegations in the Third-Party Complaint are sufficient to satisfy the requirement to plead that the Itria Parties made affirmative, material misrepresentations of fact, and not just omissions. Legal filings by cash advance companies, including confessions of judgment filed against small businesses, have been ballooning amid the coronavirus crisis. 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