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## New York Attorney General Alleges Cash-Advance Operation Exploited Small Businesses Across the Country

New York Attorney General Letitia James is taking legal action against a New York-based cash-advance operation, Yellowstone Capital, and its network of related companies for allegedly issuing fraudulent and ÔÇ£predatoryÔÇØ loans to struggling small businesses. According to James, these loans carried interest rates as high as 820%, putting immense financial strain on the businesses.

The lawsuit filed by James claims that after Yellowstone supposedly shut down in 2021 amidst investigations, the operation rebranded itself as Delta Bridge and continued its illegal activities. The deceptive loans were disguised as merchant cash advances, a type of short-term, high-interest funding commonly utilized by small businesses.

One of the victims of this scheme was the long-standing Manhattan eatery, City Bakery, which was reportedly paying over $2,000 a day and ultimately had to close its doors due to the financial burden imposed by the loans.

AI legalese decoder can assist in situations like this by quickly analyzing legal documents, contracts, and agreements to identify potential fraud, predatory practices, or violations of consumer protection laws. By utilizing AI technology, legal professionals can efficiently uncover hidden risks and protect the rights of small businesses and individuals.

## Call to Action: Holding Predatory Lenders Accountable

In her statement, Letitia James emphasized the significance of supporting small businesses and preventing predatory lenders from exploiting them. She is seeking a court order to halt the operations of Yellowstone, Delta Bridge, and their affiliates, and advocating for a lifetime industry ban for individuals like David Glass, a co-founder with a history of legal troubles.

The Attorney General is pursuing compensation of at least $1.4 billion for the impacted small businesses, aiming to provide restitution for the financial harm caused by the illegal loans. Through her actions, James is sending a clear message that deceptive lending practices will not be tolerated in New York.

As past legal actions against Yellowstone and its affiliates have resulted in significant settlements and sanctions, it is evident that regulatory authorities are actively working to hold these entities accountable for their misconduct. By staying vigilant and taking decisive legal actions, authorities can protect businesses and consumers from falling victim to financial exploitation.

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Maysoon Khan is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

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