Hinckley Allen represents Compass-Charlotte 1031, LLC (“Compass-Charlotte”), in a federal dispute in the Northern District of New York against Prime Capital Ventures LLP (“Prime”), Berone Capital Fund LP (“Berone Capital”) and other related Defendants seeking to recoup nearly $16 million in deposit payments made to Prime to secure a $75.9 million loan that Prime never funded.
Expedited discovery has revealed that Compass-Charlotte’s (and various other creditors’) deposit was not used to prepay interest on the $75.9 million loan as promised, but was instead used to fund a luxury lifestyle for Prime’s principals in what appears to be a multi-state, multi-victim, multi-million dollar fraud scheme.
U.S. District Judge Mae A. D’Agostino recently determined that Compass-Charlotte “sufficiently evidenced fraudulent conduct, imminent danger of the property being lost, a probability of harm to Plaintiff by denial of the appointment [of a receiver], and probable success in the action,” when placing Prime Capital into permanent receivership.
The Federal Bureau of Investigation recently executed search warrants at the homes of Prime’s principals.
Recent Coverage:
Prime Capital Ventures receiver says evidence points to misuse of money: A federal judge has now installed the receiver to permanently oversee the Albany lender’s operations. Read: Albany Business Review – Subscription Required
Read: Times Union – $52M Missing in alleged Albany fraud Case