Ex-Jets receiver Josh Bellamy charged with COVID relief fraud
A former New York Jets wide receiver had sticky hands — for COVID relief funds, prosecutors charged Thursday.Federal authorities in South Florida announced they’d intercepted Josh Bellamy’s scheme with 10 others to file at least 90 fraudulent loan applications seeking more than $24 million.Bellamy, who was officially released from the Jets Tuesday, obtained a loan of $1,246,565 for his company, Drip Entertainment LLC, from a federal relief program for small businesses impacted by coronavirus. The money was intended only for job retention and certain other expenses, but Bellamy allegedly splurg...
New York Daily News
Shareholder sues Tribune Publishing and its board, alleges 'poison pill' takeover defense plan is 'overreach of corporate power'
A Tribune Publishing shareholder is suing the Chicago-based newspaper company and its board, alleging the adoption in July of a so-called poison pill, is “an extremely aggressive overreach of corporate power.”The lawsuit, filed Friday in Delaware Chancery Court on behalf of the Vladimir Gusinsky Revocable Trust, seeks class-action status and a court order preventing Tribune Publishing from invoking the plan.The same family trust filed a separate lawsuit Friday against suburban Chicago-based aviation services company AAR, challenging its poison pill plan. Bloomberg Law was first to report on th...
Quicken Loans' parent Rocket Companies shows $3.4B profit in first earnings report
Detroit-based Rocket Companies, the new publicly traded firm that includes Dan Gilbert’s Quicken Loans, announced a massive profit Wednesday in its first earnings report since its IPO last month.Rocket reported net income of $3.4 billion in the second quarter that ended June 30, compared to a net loss of $54 million during the same three-month period last year.The company also did a record $72.3 billion in closed loans, which was 126% more than the same period in 2019.Rocket closed Wednesday at $31.30, up about 2%.“Record low interest rates are driving demand for home loans,” Rocket Companies ...
Detroit Free Press
Par Funding threatened violence, trashed reputations after businesses took out loans at brutal interest rates, borrowers say
When two beefy men cornered Dwayne Stewart in a Wawa parking lot in Pennsauken, N.J. last year, he was worried. But he never dreamed it could be related to his business loan.In 2019, he and his partner had borrowed roughly $50,000 from a Philadelphia cash-advance lender, Par Funding, to keep their small transportation business afloat.When the lender said they fell behind in payment, the firm declared them in default and unexpectedly froze $29,000 in his partner’s business bank account. Sums of $200 to $300 a day began disappearing from Stewart’s own accounts, withdrawn by Par Funding without h...
The Philadelphia Inquirer
New York attorney general probes perplexing Trump Tower Chicago loan deal
CHICAGO — New York’s attorney general is trying to answer one of the most perplexing questions surrounding the troubled financing of the Trump International Hotel and Tower in Chicago: whether President Donald Trump failed to pay taxes on a $100 million loan deal related to the project.According to a court filing, Trump’s lender on a high-interest $150 million loan on the Chicago property, Fortress Credit Corp., made a 2012 deal to accept a $48 million payoff — in essence, forgiving more than $102 million in debt.New York Attorney General Letitia James included the allegation in the Monday fil...
'You cannot create a viable business in your basement.' In WFH world, Chicago's tech hubs miss the magic of in-person networking
CHICAGO — One night a few summers ago, Cameo co-founder Steven Galanis and a few colleagues were working late in their office at Chicago tech hub 1871 when someone knocked on their door.The elevators to 1871 had stopped running for the night, but the man at the door was too new to know the elevator schedule. He’d started working just down the hall at venture capital firm Chicago Ventures.Galanis helped him, offered him one of the Italian beef sandwiches his mom had just dropped off, and told him about Cameo, a platform that lets users book video shoutouts from celebrities. The man, Jackson Jhi...
Red Lobster faces its 'most challenging time,' as big loan payment looms amid pandemic
Red Lobster is facing the “most challenging time” in its history during the coronavirus pandemic, CEO Kim Lopdrup says, at the same time that outside analysts worry about a looming $355 million loan the company has due next summer.The privately held seafood chain of more than 700 restaurants has a $380 million term loan, with more than $355 million outstanding, reaching maturity next July, according to a June report from Moody’s, which earlier in the year cut the company’s credit rating to Caa1, defined as “poor.”Upcoming financial events mean it is “critical to repair the balance sheet,” said...
Royal Caribbean floats testing passengers for COVID-19 when cruising resumes
For likely the first time in Royal Caribbean Group’s 52-year history, the company has gone nearly four months without a passenger cruise. It’s no surprise then, that the company’s second quarter earnings were the worst on record as the COVID-19 pandemic keeps the industry largely paralyzed.In a financial filing Monday, Royal Caribbean Group reported an adjusted net loss of $1.3 billion, or $6.13 per share, for the second quarter, compared to an adjusted net income of $532.7 million, or $2.54 per share, in the prior year. The company estimates its monthly cash burn to be between $250 million an...
5 business owners charged in COVID-19 relief fraud scheme
ATLANTA — Five small-business owners are facing federal charges after prosecutors said they defrauded the Paycheck Protection Program out of a collective $4.1 million in loan funding.Darrell Thomas, 34, Andre Lee Gaines, 66, Khalil Gibran Green, 46, and Bern Benoit, 44, are all facing several charges including conspiracy to commit bank and wire fraud, U.S. Attorney BJay Pak said. The fifth business owner, 52-year-old Carla Jackson, is charged with money laundering, he said.Investigators said Thomas, Gaines, Green and Benoit submitted loan applications on behalf of five businesses and sought ab...
The Atlanta Journal-Constitution
The Week Ahead: Confusing, but rational record market runs
The investment markets run on fear and greed, hope and worry. Emotions often drive short-term market moves. Long-term investors steadfastly believe markets ultimately reflect an economy’s (or company’s) prospects.In either view, signals from different corners of the investment markets combine to create a confounding economic outlook. Yet, individually, each of these record runs is a logical reaction to the pandemic-fed uncertainty.Investors will be watching market milestones for the S&P 500, gold and the U.S. Treasury 10-year note in the week ahead.The S&P 500 stock index has recovered almost ...