128. ATC repeats all prior allegations.
129. As alleged herein, between April 10 and April 13, 2020, ATC entered into ten promissory notes with the Corporate Defendants pursuant to the PPP program (the “PPP Notes”).
130. As set forth in the PPP Notes, ATC agreed to lend money to the Corporate Defendants and the Corporate Defendants agreed to comply with the terms and conditions contained in the PPP Notes.
131. As alleged herein, pursuant to the PPP Notes, on April 14 and April 16, 2020, ATC issued ten checks to the Corporate Defendants in a total amount of $1,979,600.00 (the “PPP funds”).
132. The Corporate Defendants availed themselves of the PPP funds.
133. As alleged herein, each of the Corporate Defendants are in default under the PPP Notes, based on several Events of Default, as that term is defined in the PPP Notes, including, without limitation: (A) the Corporate Defendants’ failure to comply with the terms of the Notes and related documents, including the regulations applicable to the PPP; (B) the Corporate Defendants’ default under loan agreements with other creditors; (C) the Corporate Defendants’ false statements in their respective PPP applications; (D) the termination of the Corporate Defendants’ existence as going businesses and their insolvency; and (E) material adverse changes in the Corporate Defendants’ financial condition and ATC’s belief that the prospect of payment or performance under the PPP Notes is impaired.
134. ATC has been harmed as a result of the Corporate Defendants’ respective breaches. 135. Pursuant to the PPP Notes, the Corporate Defendants must pay ATC’s reasonable costs and expenses incurred to collect sums due under the PPP Notes, including reasonable attorneys’ fees and ATC’s legal expenses.
136. Based on the foregoing, ATC is entitled to judgment: (A) against Jagdamba Inc. in the amount of $185,700.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (B) against Jagdamba II Corp. in the amount of $172,900.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (C) against Jagdamba III Corp. in the amount of $203,800.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (D) against Jagdamba V Corp. in the amount of $181,900.00 plus interest and ATC’s reasonable attorneys’ fees and legal
expenses; (E) against Jagdamba VI, Inc. in the amount of $209,400.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (F) against Maha Laxmi Corp. in the amount of $25,100.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (G) against Maha Laxmi II Corp. in the amount of $110,300.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (G) against Northeast Dining & Lodging, Inc. in the amount of $276,400.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (H) against Poughkeepsie GC, Inc. in the amount of $256,200.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; and (I) against Syracuse GC, Inc. in the amount of $357,900.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses;
WHEREFORE, Plaintiff Adirondack Trust Company demands that judgment be entered
as follows:
A. On its First and Second Causes of Action, (1) avoiding the unauthorized transfers of $1,924,000.00 in PPP funds to Nirmala Patel’s personal checking account no. XXXX819; (2) avoiding the $68,550.00 in net transfers from Nirmala Patel’s personal checking account no. XXXX819 to Northeast’s account nos. XXXX484, XXXX967, and/or XXXX938 from May 7, 2020 through October 5, 2020; (3) avoiding the $102,000.00 in transfers from Nirmala Patel’s personal checking account no. XXXX819 to Maha Laxmi’s account no. XXXX536 from July 22, 2020 through September 28, 2020; (4) avoiding the $26,000.00 in transfers from Nirmala Patel’s personal checking account no. XXXX819 to Niral Patel’s personal account no. XXXX423 from September 11, 2020 through September 18, 2020; and (5) awarding ATC its attorneys’ fees pursuant to Debtor and Creditor Law § 276-a.
B. On the Third Cause of Action, (1) against Jagdamba Inc. in the amount of $185,700.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (2) against Jagdamba II Corp. in the amount of $172,900.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (3) against Jagdamba III Corp. in the amount of $203,800.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (4) against Jagdamba V Corp. in the amount of $181,900.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (5) against Jagdamba VI, Inc. in the amount of $209,400.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (6) against Maha Laxmi Corp. in the amount of $25,100.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (7) against Maha Laxmi II Corp. in the amount of $110,300.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (8) against Northeast Dining & Lodging, Inc. in the amount of $276,400.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; (9) against Poughkeepsie GC, Inc. in the amount of $256,200.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; and (10) against Syracuse GC, Inc. in the amount of $357,900.00 plus interest and ATC’s reasonable attorneys’ fees and legal expenses; and
C. Such other and further relief the Court deems necessary and proper, including such equitable relief as may be granted.
Dated: October 12, 2020 Albany, New York
CULLEN AND DYKMAN LLP
By: _____________________ Christopher E. Buckey, Esq. Nicholas J. Faso, Esq. Timothy A. Chorba, Esq. 80 State Street, Suite 900 Albany, New York 12207 (518) 788-9440
VERIFICATION
STATE OF NEW YORK )
) ss: COUNTY OF ALBANY )
CHRISTOPHER E. BUCKEY, being duly sworn, deposes and says as follows:
1. I am a member of the law firm of Cullen and Dykman LLP, attorneys for Plaintiff, Adirondack Trust Company, in this matter.
2. I have read the foregoing Verified Complaint and the same is true to my own knowledge, except those matters stated to be upon information and belief, and as to those matters, I believe them to be true. The source of my belief is my review of the pertinent documents and information provided by my client.
3. The reason why this verification is made by me and not Plaintiff is that Plaintiff is not located within the County of Albany.
____________________________________ CHRISTOPHER E. BUCKEY
Sworn to before me this 12th day of October, 2020
______________________________ NOTARY PUBLIC
Commission Expires: February 22, 2022 Reg. No.: 01WE6137913