Abington investor resolves loan fraud case

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ABINGTON, PA – A man from the town of Abington has entered into a settlement in his case in connection with an alleged investment loan fraud.

Paul Ledebour, who lives in the Glenside area of ​​Abington, and co-complainant PE&L Investments of Conshohocken, filed a federal lawsuit back in February this year against Glen Mills resident Arthur S. McHenry, III, MAC Business Services LTD, based in Philadelphia, and Be The Bank Investments, also from Philadelphia, on allegations that he was defrauded after entering into an unconventional housing loan deal.

Court records show that a settlement agreement was filed with the court late last month, which states that the issue was settled amicably between the parties.

The lawsuit, which was filed in the US District Court for the Eastern District of Pennsylvania, said Ledebour met with BTB Sales Representative Lauren Richards at a networking event in Philadelphia in February 2016, during which Richards told him that BTB was dealing with unconventional loans. Typically issued to small developers looking to buy homes in South Philadelphia.

Ledebour said he was interested in becoming a lender for such projects, and Richards presented him to Defendant McHenry the following month, the suit said.

The complaint said that in the spring of 2016, McHenry told Ledebourt that he had found a potential lender and would help Ledebourg secure a home equity loan from Santander Bank.

McHenry said the lending opportunity was a good deal because he invested his own money and that the deal had collateral backing and a surety in the oil business, SG Energy Longsport, with whom McHenry was close, the lawsuit said. …

McHenry told Ledebourt that BTB will act as Ledebour’s agent for the loan and will conduct all due diligence.

Ledebourg was told that his money would be lent to Maxo and Martha Michel, and that he would hold the bond on their property at 7150 Ogontz Avenue in Philadelphia as collateral for the loan, according to the complaint.

McHenry told Ledebourt that he would receive $ 2,500 a month in interest until the loan was repaid within three months.

The lawsuit says Ledebour completed paperwork with a Santander bank employee in July 2016 to obtain a line of credit. Shortly thereafter, he transferred $ 200,000 from his line of credit into a home equity account into a BTB bank account, according to the complaint.

Ledebour received interest payments of $ 2,500 a month transferred to him from his MAC bank account from September 2016 to May 2017, but he has not received any additional payments since then, the lawsuit says.

Ledebour ultimately sued, stating that he had not received satisfactory responses from McHenry, BTB and MAC regarding accounting for where his $ 200,000 went.

The civil suit contained a total of five counts, including fraud, breach of the loan agreement and violations of the Racketeers and Corruption Organizations Act, also known as “RICO”.

In late July, upon learning of the settlement agreement, US District Judge Cynthia M. Roof ordered the clerk to suspend the case for no more than 180 days. According to the minutes of the court session, the parties were ordered to submit reports on the status of the terms of the settlement agreement every 30 days.

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