Sandel v. R2D2
Plaintiff filed his complaint on May 8, 2008. The complaint alleged that defendant Bergstein and his partner, Ron Tudor, work in the movie business making and distributing films through various entities. Beginning in 2004, defendant Bergstein came to plaintiff seeking loans to facilitate the businesses. Plaintiff agreed to make the loans in exchange for oral and written promises of repayment with interest. As of July 2005, plaintiff had loaned defendant the sum of $5,725,000. As of February 2006, with interest, the balance due to plaintiff exceeded $6,650,000. In a compromise agreement, plaintiff and defendant Bergstein agreed that the balance due would be $6,650,000. On March 1, 2006, defendants executed an Amended and Restated Consolidated Secured Promissory Note in the amount of $4.5 million. Defendants acknowledged receipt of consideration supporting the note. Defendants agreed but have failed to make periodic payments. In the fraud claims, defendants are alleged to have executed the note and represented a second note would be executed to reflect the balance of the loan owed. Defendant Bergstein made the representations without any intent of repaying the loans or fully documenting the full amount of the obligations. He also induced plaintiff to remove UCCs that had been filed and encumbered assets belonging to the various entities.
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