Sterling National Bank is suing Triple A Supplies Inc. for nearly $4 million for allegedly withholding essential information required for loans.
The bank accused Triple A Supplies and its Pinnacle Dietary affiliate of Newburgh and owner Aaron Weiss of Monroe of fraud, in a May 13 complaint filed in Westchester Supreme Court.
The dispute concerns a $10 million revolving line of credit that was guaranteed by Weiss, according to the lawwsuit, and secured by Triple A”™s assets.
Each time Triple A asked for a loan, it had to certify that its customers owed enough money to support the loan. The company also had to report disputes that could impact assets or that jeopardized collection of payments.
Triple A notified Sterling in January that it had sued several Windsor Healthcare Management nursing homes in Orange County Supreme Court for failure to pay $4.4 million for products and services.
The problem, according to Sterling, is that the lawsuit was filed last November but Triple A had not immediately notified the bank.
The money that Windsor Healthcare allegedly owed reduced the sum that Triple A needed to support the revolving loans by $2.9 million.
The bank also claims that Triple A failed to disclose $2,350,000 received from Windsor Healthcare and it has not provided several required financial reports.
Sterling notified Triple A that it was in default and demanded $3,960,625, as full payment of its obligations, by May 7. Triple A, according to the complaint, has not paid.
In addition to fraud, the bank accuses Triple A of breach of the loan agreement, negligent misrepresentation and unjust enrichment.
Triple A Supplies did not respond to an email message asking for its side of the story.
Manhattan attorneys Jeffrey M. Rosenthal and Lauren X. Topelsohn represent Sterling Bank.
