New York Attorney General Takes Legal Action Against Predatory Lending Operation
New York Attorney General Letitia James has filed a lawsuit against over 30 companies and individuals, including Yellowstone Capital and its founder David Glass, for exploiting small businesses through fraudulent loans disguised as merchant cash advances. The lawsuit seeks at least $1.4 billion in interest and fraudulent fees collected from small businesses and a court order to stop the illegal activities. The companies allegedly operated a predatory lending scheme through various aliases, issuing short-term, high-interest funding with ultra-high interest rates of up to 820% per year. The lawsuit aims to return all illegally obtained amounts and bar the companies and individuals from continuing their scheme in the future.