It could very well be that you may have heard of Kennedy Funding, Inc. It is a New Jersey company that lends money to businesses and individuals who are unable to get financing from banks, you know? All in all, yes, the company is best known as a “hard money” and bridge loan provider. Such loans usually are the best solutions for borrowers who urgently require money for property projects that banks normally reject because they view them as too risky. Thus, you can see how they cater to those who need quick financing the most, right?
But as far as lending goes, over the past years, a large number of lawsuits have been filed against Kennedy Funding by borrowers who claimed the lender employed tricky methods, lacked transparency, and unfairly lent them money. So, let’s just see the details of the Kennedy Funding Lawsuit, here we go then.
Major Legal Battles Involving Kennedy Funding
- Three Keys Ltd. v. Kennedy Funding (2006)
First of all, in June 2006, one of the largest private equity funds in the world, Kennedy Funding, ran into legal troubles because of a joint loan of $16 million given to them by Three Keys Ltd. for a real estate project in Ft. Myers, Florida. The family partnership that was supposed to manage the project went bankrupt. And just so you know, Kennedy Funding took control of the project and spent money on cleaning up the environment and unpaid taxes just to get rid of the environmental liability being resisted by the company. However, they look at Three Keys’s complaints as an affront to the goodwill of their venture. They think they were treated unfairly with the decisions of the funds they controlled and thus sued over breach of contract. And just so you know, on the first trial, Three Keys won around $5.3 million.
- Construcciones Haus v. Kennedy Funding (2008)
Then, back in 2008, a Mexican company named Construcciones Haus wanted to borrow a large sum of money, ranging from $3 to $8 million, from Kennedy Funding because they wanted to build a housing project, you know? Sure, the Mexican company paid a fee of $120,000 for the first installment of the project, then problems arose about the evaluation of the project with the company claiming that the unfairness was being caused solely by the one whose methods were not at the required level of professionalism. When the agreement ceased to exist, and Kennedy turned down the request for the return of the fee, that’s when Construcciones sent a lawsuit.
- Shelton v. Kennedy Funding (2010)
In the year of 2010, again, the actions of Kennedy Funding were tested when Virgil Shelton approached the court over the funds used in the sale of the cemetery property. How and why? Well, after Shelton sold the property, his buyer Willie Acklin borrowed $675,000 from Kennedy Funding and subsequently defaulted. Shelton claimed that Kennedy held back his payment, thus flouting the Arkansas law. After a prolonged battle, the court ruled that Shelton was awarded the amount of $1,675,000.
Recent Complaints and Lawsuits (2020)
For sure, legal troubles for Kennedy Funding have persisted in 2020, with fraud allegations being the main complaints this time. Why? Well, the most notable case is the one filed by the firm Quimera Holding which accuses the firm of fraud, but also the complaint by Vladimir Isperov, a funding business expert in California, whose details were not revealed, you know? These recent cases share similarities with the National Public Data Breach Class Action Lawsuit, where financial institutions also faced scrutiny over their handling of sensitive information. All in all, these cases demonstrate that Kennedy’s practices may still be a cause of complaints, just like the previous situations demonstrated difficulties with fair practices and proper methods.
