Lawsuit alleges Boston man lied about software project to secure $250K loan

By John Suayan, Galveston Bureau | Feb 21, 2013

HOUSTON - Harris County resident Blake Perrin accuses a Massachusetts man of defaulting on a loan, recent court documents say.

Perrin sued Boston resident Stephen E. Smith in Harris County District Court on Dec. 21, 2012.

Smith removed the case to the Houston Division of the Southern District of Texas on Feb. 11.

The suit explains that Smith approached Perrin and solicited funding for his business, Privity Financial, in October 2010, stating the latter was loaned $250,000 in January 2011.

Smith agreed to pay the complainant the principal sum of $250,000 plus $20,000 in interest by Mar. 30, 2011, the initial maturity date.

The respondent also had the option of extending the initial maturity date for a period of an additional nine and one-half months to Jan. 14, 2012, which became the final maturity date.

In exchange for the loan in question, Perrin also received a 2 percent non-dilutable interest in Privity.

All principal and interest outstanding would accrue interest at the highest lawful rate, the suit says.

According to Perrin, the time came for Smith to pay between $250,000 and $310,000, but the respondent failed to remit.

The plaintiff adds Smith secured the disputed funds "through fraud and false promises," insisting the defendant lied to him about a software project that turned out to have fallen through.

Smith purportedly "used all or most of the plaintiff's loan to furnish [his] own extravagant lifestyle while [he] bankrupted Privity," Perrin argues.

Attorney Andrew K. Meade with Hawash Meade Gaston Neese and Cicack LLP in Houston is representing the plaintiff.

Case No. 4:13-CV-389

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