ING accuses American investment firm of defrauding the bank out of $28 million
ING may have fallen victim to fraud by an American football investment firm. The Dutch bank has filed a lawsuit in the United States against the firm, 777 Capital Partners, demanding 28 million dollars it loaned to the firm repaid, NOS reports.
In the case filed in New York on October 17, ING accuses the company of providing incorrect information to obtain the loan and then using the money differently than agreed. The firm's founders, Steve Pasko and Josh Wander, were also accused by the Dutch bank.
ING loaned 28 million dollars to 777 Capital Partners in 2022. The company said it would use the money to make purchases that would serve as collateral for the loan. However, the bank discovered that the company had purchased hardly any collateral, and the collateral it did have also served as collateral for loans from other parties.
For two years, the investment company provided documents to ING to make it appear that everything was in order. But according to the bank, 777 Capital Partners used the money for itself or to pay loans from other parties.
ING considers this fraud and is demanding that 777 Capital Partners repay the loan in full, plus compensation.
According to the Financiële Dagblad, the British investor Leadenhall Capital has filed a similar case against 777 Capital Partners. The British firm loaned 350 million dollars to 777 Capital Partners, only to later find that the American company used the same collateral for multiple loans.
ING told NOS in response that it is not uncommon for customers not to repay their loans. “If we are unable to reach a solution with the customer, this sometimes leads to legal proceedings. It is our policy not to comment on that.”
777 Capital Partners previously came under fire after the failed takeover of the football club Everton. ABC News reported that the U.S. Department of Justice is also investigating the investment firm for money laundering.
