HOUSTON — A development company is suing two unlicensed lenders, alleging deceptive and/or misleading representations.
Group One Development Inc., Gerardo Diaz and Gerardo Diaz-Blanco filed a Feb. 7 in the Houston Division of the Southern District of Texas against Bank of Lake Mills and Fora Financial LLC, alleging they violated the Texas Finance Code.
According to the complaint, in September 2016, the plaintiffs, jointly and severally, obtained a loan from Bank of Lake Mills (BLM) of $159,400, with an interest of more than 35 percent. As result of the defendants' unlawful actions, the suit says, the plaintiffs suffered irreparable monetary harm and injury and were forced to hire an attorney.
The plaintiffs allege BLM made a business loan in excess of 18 percent interest and represented that the loan would be unsecured and that defendants would have no right to any of the plaintiffs’ personal belongings.
The plaintiffs seek trial by jury, judgment, jointly and severally, for actual, punitive and exemplary damages, rescission of the loan agreement, attorney fees, court costs and interest and all other equitable relief. They are represented by attorney Jason D. Kraus of The Kraus Law Firm in The Woodlands.
Houston Division of the Southern District of Texas Case number 4:17-cv-00375