https://finance.yahoo.com/news/york-sues-loan-shark-group-210607423.html

Among Yellowstone Capital’s alleged victims is City Bakery, a Manhattan eatery that closed its doors in 2019 after 30 years because it couldn’t continue making daily payments of $2,000.

“The lenders falsely promised to ‘reconcile’ merchants’ daily payments to ensure they never rose above an agreed-upon percentage of the borrowers’ receipts, but the lenders used numerous fraudulent measures to ensure borrowers almost never qualified for payment refunds,” the attorney general’s office said in a statement.

Additionally, subsidiaries of Yellowstone Capital, which later changed its name to Delta Bridge, allegedly misused an obscure legal tool called “confessions of judgment” to bypass court proceedings and take advantage of loan recipients. Businesses like City Bakery, which employed dozens of full-time workers at the time of its closing, signed these confessions as part of receiving cash advances, inadvertently admitting to guilt before receiving the agreed-upon funds.

GL