Ever wondered about the kennedy funding lawsuit verdict?
What kind of penalty did the charges carry for Kennedy Funding Inc.?
Kennedy Funding Inc. is a milestone in the industry of financing services. But what happened exactly that cast the shadow of a bad reputation on the funding agency?
Let’s find out about all these right here.
But before that, let’s have a look at what exactly it is, what the lawsuit is all about, is there any other charges against them or not, and what the verdict was all about.
Kennedy Funding: What is It & How It Operates
It is a renowned funding agency providing funds or loans to businesses. It is located in the United States. They are one of the leading private money lenders in the U.S.
People can mortgage their properties to get big amounts of loans. Kennedy Funding will evaluate the property and based on that, they will sign an agreement with the parties before lending them money. They have strong policies to stand by and have already created a remarkable position in the world of financing. However, they also got involved in some legal matters as well like Kennedy funding lawsuit.
They bridge funds and loans for commercial properties and the purpose of land acquisition. They also offer loans for development needs, workouts, organizations, or individuals facing issues like foreclosures or bankruptcy.
Until now, they have closed loan amounts of almost $4 billion. They are basically based in the United States with a strong operational presence in areas like the Caribbean, Canada, Europe, as well as Central & South America.
According to a recent report, Kennedy Funding has closed a large amount of funds worth $5 million on a residential property located at Old Westbury in New York. There are other instances as well where Kennedy Funding Inc. has securely provided the property holders with a big amount of capital for investment.
Latest Charges Involving Kennedy Funding Lawsuit:
However, recent reports show that there are some customers who are not satisfied with the services offered by Kennedy Funding. Most of them have already filed complaints against them on the basis of violation of policies, misleading information, breach of contract, and not approving almost finalized loan amounts.
However, there is some data that shows Kennedy Funding filing complaints against companies. One such scenario is when Kennedy Funding complained against Lion’s Gate Development, LLC. They said that there was no agreement or contract signed between the two parties stating that Kennedy Funding would lend to Lion’s Gate the loan amount of 18.2 million dollars as a part of a real estate transaction.
In response Lion’s Gate Development also filed a counter-complaint against Kennedy Funding that was later amended.
Three Keys, an agency also filed complaints against the former one regarding violation of agreements signed between the two.
According to another report, Kennedy Funding complained against Greenwich Landing and Mahmoud Wahba who foreclosed a mortgage property served by them as a security against the loan amount lent.
But, what about the Kennedy funding lawsuit that shook the world of finance world? Let’s take a deeper look at it.
Kennedy Funding Lawsuit: The Legal Battle of Finance
The lawsuit took the entire world by storm when charges against a famous finance service provider company were proved in a court of law and they had to let go of a hefty amount as penalties.
The lawsuit is between Kennedy Funding and the owner of a cemetery located in Arkansas, Virgil Shelton. They also faced other lawsuits as well with different accusations, allegations & circumstances that could have generated a different verdict altogether.
However, the charges against the agency in the Kennedy Funding lawsuit were proven to be true and the court awarded Shelton $1,675,000 prize money.
Later, the amount that Kennedy Funding was supposed to pay as penalties to Shelton was brought down to $675000. Also, their appeal to drop off the charges of fraudulent activities was approved by the jury.
Introducing The Kennedy Funding Lawsuit Case Background
Virgil Shelton established the Rest in Peace cemetery in the year 1967 and decided to retire in the year of 1992. So, he sold the property to a local undertaker namely Willie Acklin, and made a deal involving a mortgage and promissory note.
In the late 1990s, when Acklin faced financial difficulties involving the property, he decided to improve its financial position and structure by obtaining a loan from KFI or Kennedy Funding Inc.
The Estoppel Certificate & The Loan Agreement
The Estoppel certificate plays a crucial role in the entire Kennedy Funding lawsuit. It is a legal document that verifies the current status of the lease agreement signed between Shelton and KFI & prevents Acklin from signing any other lease contract with KFI that contradicts the previously decided agreement policies.
Before KFI could sanction the bridge loan, they clarified the obligations that Acklin had to Shelton & requested Shelton reduce the mortgage amount to some extent.
KFI signed the loan agreement with Acklin stating that they are ready to lend the loan amounts to him and will use the cemetery property as collateral. However, they will only owe Acklin the sum amount that was predetermined in the loan agreement signed between Shelton and KFI.
The Lawsuit Issues and The Court Verdict
The question arises when KFI initiated the foreclosure procedures involving the mortgaged property & whether they have met all their commitments stated in the lease agreement.
The situation got worse when Shelton complained against KFI that they failed to showcase the proper terms and conditions of the Estoppel certificate; thereby falsely representing the company policies and breaching the contract.
When the jury gave his verdict and penalized KFI, they also appealed on the basis of the fact that the Estoppel certificate was not required due to the statute of fraud. Also, they claimed there was a lack of enough evidence to support the jury’s verdict on the Kennedy Funding lawsuit.
The Final Repercussion of The Lawsuit
Allegations were brought against Kennedy Funding Inc. that they failed to estimate the right worth of the property and violated the Securities Exchange Act by not being able to uphold company policies and facts in the right way & accepting risks.
One of the investors sued this New Jersey-based money lending agency and demanded compensation for the loss of money.
The Kennedy Funding lawsuit acts as an eye-opener for the investors so that they carefully conduct their due diligence and read about the company policies, rules & regulations beforehand, especially when dealing with brokers and money lenders to avoid money loss.
FAQs:
Q1. Who is considered to be the plaintiff in the Kennedy Funding lawsuit case?
Ans: As per the reports, the plaintiff in the Kenndy funding lawsuit was Virgil Shelton who brought charges of breach of the contract against the reputed Kennedy funding lawsuit in the law court. He is the owner of a cemetery located in Hensley, Arkansas, called Rest in Peace.
Shelton also complained about the ongoing fraud activities in the name of money lending, breach of faith, and fair services offered by Kennedy funding.
Q2. Who is the defendant in this Kennedy Funding lawsuit case?
Ans: Kennedy Funding is considered the defendant in this lawsuit case because they were accused of committing criminal actions. They were accused of fraudulent activities in the name of lending a loan to Virgil Shelton.
According to him, Kennedy funding did not evaluate the property before the loan approval and they inflated the actual worth of the property just to encourage investments.
Q3. What was the judicial verdict in the case of the Kennedy Funding lawsuit case?
Ans: According to the reports, the jury decided to award the plaintiff, Virgil Shelton with the sum of money of $1,675,000 after analyzing all the evidence presented.
Q4. What was the appeal to the Kennedy Funding lawsuit matter?
The appeal by Kennedy Funding was approved in the law court later. The penalty amount that the funding agency was supposed to pay to the plaintiff Shelton was reduced to $675,000. Also, the charges against committing fraud were also dropped.
