HOUSTON — A Spring technology company alleges it was fraudulently lured into a short-term business loan illegally disguised as a "merchant cash advance."
Baber Naeem and Emasters Technologies Inc., doing business as Emasters Technologies, filed a complaint Nov. 26 in Harris County District Court against 1 West Finance, alleging deceptive trade practices, fraud and breach of contract.
According to the complaint, (https://jnswire.s3.amazonaws.com/jns-media/10/98/9135980/201985077.) PDF Emasters entered into a loan agreement with 1 West on Oct. 18, for a contracted amount of $15,000 that "was supposedly relied upon" the plaintiff's "daily receivables." Emasters alleges the payment required by the loan would be $6,000 in finance costs amounting to a 216.23 percent interest rate.
The plaintiff alleges the loan was "disguised as a merchant cash advance" and is unlawful.
Emasters seeks monetary relief between $200,000 and $1 million, interest and all other just relief. It is represented by attorneys Robert Lane, Joshua Gordon and Tyler Basham of The Lane Law Firm PLLC in Houston.
Harris County District Court case number 2019-85077