Update February 6, 2018 – The case below was dismissed on February 1, 2018. You can see the Judge’s order here.
Someone sent me a copy of a complaint filed against a number of entities in Florida. I get a lot of these things sent to me. But this one caught my eye because it said it was about the Swiss Debt Pushdown Acquisition Structure. Huh?
The interesting aspect of the debt relief world is you are always learning something new. Just when you’ve seen it all, up pop some new scheme.
So let’s wade through this mess together and see what we can figure out.
On March 15, 2017 Complete Business Solutions Group, Fast Advance Funding, filed suit in Pennsylvania against New Horizons Management Company, New Horizons Custodial Funding, NH Acquisition Corporation, NH Acquisition Business Trust, Legal Counsel Plans, Legalcare Trust Company, Solace Equity Finance, Ford Resource Group, Alfonso Oviedo-Reyes, Barbara Roussin, Edward Gregory Steadman, Sanjiv Matta, and Lori Ford.
Complete Business Solutions Group is a company who I’ve written about previously in Forward Financing Makes Life Spicy in Business Debt Restructuring.
It seems the companies who advance money to business clients are not taking it lightly when debt relief companies get involved. Dealing with business debts is different than dealing with consumer debts. It’s a whole different beast. And this beast bites.
The complaint states:
Defendant, New Horizons Management Company, was formed in Florida on January 10, 2017 with Defendant Edward “Greg” Steadman “Trustee” listed as thc registered agent. Could this be the same Edward Cherry who changed his name to Edward Gregory Steadman? If so, damn, Ed Cherry gets around. Seriously, that’s one dude with persistence.
Complete Business Solutions Group is in the business of merchant cash advance, sometimes referred to as factoring.
The complaint paints a picture of clients of Complete Business Solutions Group who went on to say they had moved their legal company structures to Florida who were represented by Florida attorney Alfonso Oviedo-Reyes.
Allegedly the “Swiss Debt Pushdown Acquisition Structure” was a debt relief solution presented to companies by Edward Gregory Steadman. He allegedly described this technique as “Setting up a new company which will assume all of the liabilities of the target company; provide financing in onier to resolve the creditor claims against the first company, and provide working capital to company.”
Complete Business Solutions Group says “Defendant Steadman knowingly or negligently misled Merchant through giving advice which failed to mention successor business liability for obligations or potential fraudulent transactions.”
It seems these companies were targeted when Complete Business Solutions Group filed publicly available UCC-9s filed related to Merchant funding contracts.
We finally get a bit more information on our Swiss approach. The complaint says, “Plaintiff states that the ‘Swiss Debt Pushdown Acquisition Structure” is a very specific tool used within the Swiss Federation to lessen the Swiss tax burden for some business transactions and is being used by the Defendants as a meaningless marketing tool.”
The Plaintiff goes on to say, “Plaintiff avers that all of the Florida Defendants are involved in a common enterprise wherein they shared telephone numbers, offices, and officer. Directors – the corporate formalities have never been observed and thus the corporate veil should be pierced with regard to all Florida Defendants.”
You can read the full complaint and all the attachments, here.
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