Capital Funding and Consulting, LLC has filed for bankruptcy. I can’t find any info on them. Do any of our readers know what it is or whom may be behind it?
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Google lead me here:
http://www.bbb.org/richmond/business-reviews/loans/capital-funding-and-consulting-llc-in-richmond-va-63390087/
Business Name: Capital Funding and Consulting, LLC
Business Address: 1145 Gaskins Road
Site 104
Richmond, VA 23238
Original Business Start Date: 11/1/2006
Type of Entity: Corporation
Incorporated: 2006 in VA
Principals: Don Lacey, Managing Member
Mike Frye, Managing Member
Phone Number: (804) 622-9571
Fax Number: (804) 622-9930
BBB Accreditation: This business is not a BBB Accredited Business
Type of Business: LOANS
Website Address: http://www.capitalfundingandconsulting.com
http://www2.timesdispatch.com/rtd/business/local/article/FLIP14_20090613-221605/273801/
From article:
Investors allege that Lacey, a former Henrico County police officer who ran multiple limited liability companies that owned the fixer-uppers, took the money for his own personal use, according to court records in Richmond and Henrico.
They claim that Lacey acted in collusion with David A. Silver, president of Old Dominion Financial Service Inc., a Henrico-based company that arranged and serviced loans from investors, court records show.
Silver got involved with Lacey about 10 years ago, putting investor money into deeds of trust attached to properties owned by Lacey’s companies.
Old Dominion was established in 1977 by Silver’s father, who initially ran a remodeling company. It ceased operation a couple of months ago, said Jeffrey Geiger of Sands Anderson Marks & Miller, Silver’s attorney.
Silver was the mortgage broker, pooling investor money and putting it into promissory notes. Investor money flowed through Old Dominion to Lacey and his companies, which owned the properties.
Silver and his wife, Pamela, invested their life savings in the companies owned by Lacey, according to Geiger.
Lacey also solicited money through Capital Funding and Consulting LLC, an investment company that he controlled. Capital Funding is one of 33 limited liability companies owned and managed by Lacey. LLCs are business partnerships that protect individual partners from the liabilities of other partners.
Investor money was supposed to be used to buy and renovate the fixer-uppers. In effect, the investors were the lenders on the properties, much like a bank is on a typical purchase or renovation.
In return, investors were promised high returns of 10 percent to 12 percent a year on promissory notes secured by deeds of trust.
Old Dominion created accounts that paid a fixed rate of interest for a short term. The company was supposed to return all money at the end of the term, court records show.
Loan terms ranged from one to 10 years. The money, according to city court records, went into accounts owned and controlled by Lacey.
Lacey and his wife personally guaranteed the promissory notes, according to court records and company materials.
Tamara Lacey, who filed for personal bankruptcy liquidation last month, claimed assets of $4.2 million and liabilities of $47.2 million. According to the bankruptcy petition, the couple is in debt for at least $25.8 million mostly in promissory notes and guarantees of business obligations.
They owe Old Dominion $17.3 million, secured by a second mortgage on a house valued at $390,000, bankruptcy court records show.
Donald Lacey could not be reached for comment despite repeated attempts. Tamara Lacey referred questions to her husband’s attorneys, Steven Benjamin of Benjamin & DesPortes in Richmond or John Goots of Coleman Goots & Associates in Mechanicsville.
Benjamin said last month that Lacey’s business was hit hard by the economic collapse and that he was making a good-faith effort to repay the money.
Benjamin later said he was representing Lacey only on the federal investigation and could not speak for Lacey and his business operations.
“Ultimately, as part of our cooperation with the government investigation, I want to understand where the money went, how it was used and what remains for appropriate repayment,” Benjamin said. “We may find that mediation is necessary to resolve competing claims, civil judgments and the effects of a restraining order.”