Kennedy Funding Financial has a history of taking money from businesses and investors by promising to close a loan that they never actually end up doing. In this analysis, you’ll find out about the different frauds perpetrated by Kennedy Funding in Englewood Cliffs, NJ.
What They Want You to Believe About Kennedy Foundation Funding
For development, foreclosure, workouts, commercial property acquisition, and bankruptcy, Kennedy Funding Financial is a direct private lender that claims to specialize in providing bridging loans. This company’s management is based out of Englewood Cliffs, New Jersey.
Kevin Wolfer is the head honcho at this company. Kennedy Funding Financial asserts that they have funded loans totaling over $3 billion.
To spread the word, the corporation is investing substantially in paid advertisements and news releases. You may find a plethora of articles about Kennedy Funding Financial PR if you do a search for “Kennedy Funding Financial PR” on Google.
If they’re just a lending company, why do they waste money on PR? Since there are numerous negative reviews about Kennedy Funding Financial on the web. For context, I’ll briefly go over them and the Kennedy Funding litigation to explain the company’s heavy investment in advertising.
The general public views Kennedy Funding Financial as dishonest.
Kennedy Funding Financial has received a lot of bad feedback due to the abundance of customer complaints posted online. Especially in the realm of money. Most organizations and brokers agree that KFF is not to be trusted.
Here’s a thread where several experts in the field of finance talk about a particular lender. They all agree that Kennedy Funding Financial collects a large sum of money in advance and then reneges on the arrangement. The client loses the initial payment.
A user pointed out that KFF operates another fraud business under the name Silver Arch Capital Partners. Since the focus of this evaluation is Kennedy FUnding Financial, I will not discuss the other firmly in any further depth.
Such talk is evidence of public opinion on this financial institution. People probably view this company as dishonest because of the numerous complaints and lawsuits filed against it.
An Angry Client of Kennedy Funding Financial, Who Was Defrauded by the Firm
Similar to other ripoff report posts, here is one about Kennedy Funding. According to the critic, Kennedy Funding Financial is nothing but a fraudulent operation. The company asks for a due diligence fee of up to $100,000 but does not explain.
Funding complaints to Kennedy Financial
There was no purpose in trying to learn more about this cost on the part of the reviewer. Kennedy Funding withheld important details. They tried calling and emailing but got no response.
When the auditor finally showed up at their office, they let him know that he can get his money back within three days. But the firm ignored their request for a refund.
The reviewer warns potential customers that they should avoid KFF. There is no shortage of Kennedy Funding Financial complaints on the internet. They’ve harmed a lot of people.
Customer of Kennedy Funding Financial Reports $180,000 Loss
Yet another grievance has been lodged against Kennedy Funding. Here, the client brings up the fact that they know two investors who were also duped by this firm. The firm investigates your proposal and says they can provide funding. However, there is a Due Diligence cost before they can underwrite the loan.
They have the customer sign a contract stating that they have no obligation to provide any services in exchange for payment.
According to the reviewer, they know multiple investors who paid Kennedy Financial a due diligence cost of up to $180,000.
After you’ve paid the fee, the lender waits a while before telling you they can’t approve your loan. To make it appear as though they are a real company, they do things like travel around and post false projects to their website.
This reviewer echoes the sentiments expressed in the prior review and advises readers to avoid doing business with this lender.
Suit Against Kennedy Funding, Inc. for $1.67 Million
A discussion of a Kennedy Funding case is essential to this analysis. Kennedy Funding Financial was sued by a cemetery owner who claimed the company had broken its contract.
For KFF to provide a bridge loan for the cemetery, they required $675,000 to be held in escrow. But they never deposited any money into the escrow account.
So when that person sought to withdraw their money from the escrow account, they were unable. Simply put, there was no capital to begin with.
A jury found Kennedy Funding liable for the plaintiff’s $1.675 million in damages for breach of contract and fraud when the case went to trial. However, the appeals court ultimately overturned the verdict, and KFF only had to pay $675,000.
You should realize that the disagreement continued for close to twenty years. Kennedy Funding Financial made every effort to avoid having to pay that individual.
Kennedy Funding, Inc. Sued by Fortis for $282 Million
Kennedy Funding has had disagreements with both regular people and major businesses. Fortis Bank had originally brought suit against Kennedy Funding, but the case was settled for an unknown sum.
Keep in mind that this scenario included assistance from more than one financial institution. The lender’s bank account was severely damaged by this $282 million lawsuit.
It is good knowledge that Kennedy Funding aggressively pursues loan default cases involving real estate developers. They were the ones to receive the lender’s wrath in this instance.
Fortis Bank claimed in its complaint that it was able to demand immediate payment from the defendants or the surrender of the loans serving as collateral for the debt because of the rising defaults by Kennedy’s borrowers.
Without a doubt, Kennedy Financial realized it couldn’t win in court and opted to negotiate a settlement instead.
Controversial Contract Violation by The Strand Corporation
Dispute with The Strand Corp. over a breach of contract. In one case, Kennedy Funding conned a real estate company out of $3 million by pretending to lend the business money but demanding payment upfront. KFF kept renegotiating the terms and ultimately decided not to issue the loan.
Royale Laua Resort Fee Dispute Worth $2.7 Million
The Royale Laua Resort and KFF were involved in a $2.7 million lawsuit. In this case, the court had approved some of Kennedy Funding’s counterclaims while rejecting others. On the other hand, Kennedy Financial was found to have broken both the contract and the covenant of good faith and fair dealing.
To recoup the commitment fee Kennedy Funding collected for a loan it never made, Construcciones Haus Sociedad sued the company.
To recoup the $260,000 commitment fee Kennedy Funding Financial invoiced Omni Credit Alliance for a deal that was never finalized, OCA sued KFF.
Dan Keener sued Kennedy Funding Financial for violating South Carolina’s Loan Brokers and Unfair Trade Practices Acts by charging an advance fee for issuing a loan.
Finances in Ibarra vs. Kennedy. Here, Kennedy Funding missed a deadline to foreclose, and the borrower went into default. They demanded full repayment from the borrower at this point.
In 2020, Vladimir Isperov brought a fraud suit against Kennedy Funding Financial. This case has yet to be resolved.
Anthony Modica sued Kennedy Funding because the lender took his commitment fee even though the deal was never finalized. They had requested an $82,500 commitment fee.
Conclusion
The claims filed against Kennedy Funding Financial all center on the company’s alleged failure to follow through on loans after receiving an upfront payment for them.
There are just too many online Kennedy Funding accusations about the company’s unethical dealings. For these reasons, you should stay far away from this company.
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