Note: Brilex Industries, Inc. (Investor) lent USD 500,000 to Vunited Partners, LLC (Borrower), a Georgia, USA, limited liability corporation. The loan was to be used "to obtain funding for projects of D4 Energy Group, Inc., in which Plaintiff was to be an investor." The contract also provided that the loan was to be repaid if financing was not obtained within 45 days. Although Borrower did not obtain an LC or further funding within 45 days, it did not return the USD 500,000.

Investor sued Borrower for breach of contract, seeking recovery of the loan amount, court fees, and USD 1,000,000 in punitive damages.

Investor moved for entry of default judgment and the United States District Court for the Northern District of Ohio, Pearson, J., granted Investor's motion. Investor provided court with contract and the Judge was satisfied that the Borrower had failed to meet the terms of the contract.

Comment: These circumstances have many hallmarks of commercial fraud. One wonders what success the Investor will have in recovering its funds.



The views expressed in this Case Summary are those of the Institute of International Banking Law and Practice and not necessarily those of ICC or the other partners in DC-PRO.