PHILADELPHIA – A financial institution claims two Feasterville entities misrepresented that certain lease payments were current.
Keybank National Association filed a complaint on Feb. 14 in the U.S. District Court for the Eastern District of Pennsylvania against Fleetway Leasing Co. and FMC3 LLC alleging breach of contract and fraud.
According to the complaint, the defendants acquire automobiles and then sell or lease the inventory. The suit states the lease payments are used by the defendants to pay the debt service owed to the plaintiff on secured loans.
"Since at least June 2017, the defendants have intentionally misrepresented to KeyBank that certain car rental agencies were current on their lease payments when, in fact, their accounts were delinquent. The defendants fraudulently concealed this material financial information in order to induce KeyBank to continue to extend credit to the defendants...," the suit states.
The plaintiff seeks judgment against the defendants in the amount of $10,598,061.85 plus interest, other charges, court costs, the amount of $108,315.29 plus interest, and any further relief the court grants. It is represented by Andrew J. Soven and Brian M. Schenker of Reed Smith LLP in Philadelphia.
U.S. District Court for the Eastern District of Pennsylvania case number 2:18-cv-00667-GAM