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untanglingwebs
El Supremo
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US District Court Eastern District of Michigan Southern Division
Case 2:07-cv-12105=MOB-V MM Judge Marianne Battane
United States of America v Community Capital Development Corporation , Charlotte Edwards, and Citizens Bank
On behalf of the SBA
On October 23,1991 Congress authorizes the "Microloan Demonstration Program" On December 2, 1997 the program was made permanent.
1st Claim_CCDC
On or about April 2, 1996 CCDC entered into a Loan Authorization Agreement with the SBA for $175,000. CCDC was to re- loan to eligible small businesses under the Microloan Program. [/i] |
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Mon Dec 31, 2018 1:38 pm |
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untanglingwebs
El Supremo
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The SBA was to have a security interest in all funds in CCDC Microlan Revolving Fund and in all funds in the CCDC Loan Reserve Fund.
Without prior written consent of SBA, no withdrawal from the Microloan Revolving Fund other than to establish the Loan Loss Reserve Fund, make microloan disbursements, and to make loan payments to the SBA on the Loan.
The note was executed on June 3, 1996 and payments were made until November 7, 2005. There was a balance due of $19,303.81 plus interest.
On June 30,2006 the SBA demanded re-payment and received no response. |
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Mon Dec 31, 2018 1:47 pm |
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untanglingwebs
El Supremo
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2nd claim against CCDC.
on or about July 22, 2002 CCDC entered into another Loan Authorization Agreement with SBA dor $200,000 with SBA and again had a security interest in all funds.
There were no payments after May 7, 2006 and the principal balance was $179,203.35. There was no response from CCDC for the demand for payment. |
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Mon Dec 31, 2018 1:55 pm |
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untanglingwebs
El Supremo
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(page 3)
Claim against CCDC, Charlotte Edwards and Citizens Bank
On or about April 12, 2002 the SBA, CCDC and Citizens Bank entered into an agreement whereby CCDC would open a Microlan Revolving Fund Account with Citizens Bank and the SBA, CCDC, and Citizens agreement opened a Microloan Loss Reserve Fund Account:
To be used exclusively for the deposit and disbursements specifically related to the performance of the referenced Authorization Loan Agreement;
SBA to have superior lien upon balances in the account;
SBA would have the right to terminate Microloan Lenders ability to access this account for any purpose;
SBA has right to withdraw any and all money in said account and apply same on the obligations of microlan obligations to SBA.
SBA was to have the superior lien on all accounts. |
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Mon Dec 31, 2018 2:08 pm |
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untanglingwebs
El Supremo
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On or about February 17, 2005 Citizens Bank, and CCDC without the knowledge or consent of SBA transferred $28,423,11 out of Microloan Revolving Fund and $24,852 out of Microloan Loss reserve Fund -a total of $53,275.11 -in order to permit CCDC to repay other debts it had to Citizens Bank.
At the time of the transfer Charlotte Edwards was Chair of the Board of Directors of CCDC and an employee of Citizens Bank.
Charlotte Edwards knew such transfer took place and did nothing to stop it and did not inform the SBA.
The SBA on August 11, 2006 demanded the return o the $53,275.11 and received no response/
The SBA demanded an accounting of the Banks stewardship over the funds and received no response. |
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Mon Dec 31, 2018 2:22 pm |
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untanglingwebs
El Supremo
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Citizens and CCDC breached the term of there agreement with SBA by making payments other than those permitted.
Ciizens breached the terms of its agreement with SBA by refusing to give SBA an accounting of the funds and refusing to turn those funds over to SBA
"Upon information and belief Edwards tortiously interfered with the contractual relationship between SBA, CCDC, and Citizens by facillitating the wrongful transfer of funds from from CCDC's Microloan Revolving Fund and Microloan Loss Reserve Fund at Citizens Bank to Citizens bank." |
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Mon Dec 31, 2018 2:32 pm |
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untanglingwebs
El Supremo
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| The Citizens Ban agreement was signed by Harold hill on behalf of Citizens and Charlotte Edwards as Asst. Vice president and Community Affairs Officer of Citizens Bank. |
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Mon Dec 31, 2018 2:36 pm |
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untanglingwebs
El Supremo
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SBA certified mail to Mr. Steve Blackman, ORE Manager, Citizens bank, August 16, 2006
RE: Request to return of $53,275.11 to SBA from the MRF and LLEF of Community Capital Development Corporation (CCDC)
As you know, CCDC has maintained its minimum operations. We have learned that you authorized to transactions of the Small Business Administration (SBA) funds without the agency consent on February 17, 2005. According to Ms. Charlotte Edwards, an employee of your bank and board president of CCDC, you authorized the transactions funds you held at your ban to payoff the line of credit at Citizens Bank.
*$28,423.11 ... (SBA Microloan Revolving Fund.
*$24,852.00....( (Loan Loss Reserve Fund.
As you are aware, CCDC should have sent all monies in the above MRF and LLRF accounts to the Small Business Administration (SBA); Both funds are considered collateral to SBA. I am requesting your bank return $53,275 to SBA by September 1,2006.
Signed Janice Cromer, Acting Chief, Microenterprise Development Branch with enclosures. |
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Tue Jan 01, 2019 7:54 am |
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untanglingwebs
El Supremo
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A US Marshall served papers on Charlotte Edwards on 6.27/07.
CCDC had moved from 805 Welch Blvd. Charlotte Edwards was served at Citizens Bank as the registered agent of CCDC and President.
Jacqueline Holtz was the Assistant US Attorney on the case.
There was a resolution of the matter on August 31,2007 and the case was dismissed with prejudice by Judge Marianne O. Battani |
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Tue Jan 01, 2019 8:03 am |
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