Illinois Suit against On-Reservation Payday Lenders (Martin A. “Butch” Webb)

Here is the complaint in Jackson v. Payday Financial LLC (Ill. Cir.):

Jackson v Payday Financial Complaint

Here is a description of the defendant:

4. Defendant Payday Financial, LLC (“Payday Financial”), also doing business as Lakota Cash, Big Sky Cash, and Big Sky Cash, is a limited liability company chartered under the law of the state of South Dakota as an ordinary business entity (Exhibit C) It has its principal place of business at 612 E Street, Timber Lake, South Dakota. Payday Financial caused the State of South Dakota to charter defendants Great Sky Finance, Western Sky Financial, Red Stone Financial, Management Systems, 24-7 Cash Direct, Red River Ventures, and High Country Ventures, and served as the managing member of those entities until at least February 2011. Payday Financial advertises and offers its loans to consumers through the Internet websites http://www.lakotacash.com (Exhibit D), http://www.bigskycash.com (Exhibit E) andhttp://www.paydayfinanciallc.com (Exhibit F). Payday Financial directly or indirectly transacts or has transacted business in Illinois.
5. Defendant Western Sky Financial, LLC, is a South Dakota limited liability company with its principal place of business at 612 E Street, Timber Lake, South Dakota (Exhibit G). Western Sky advertises and offers loans to consumers by television, including transmissions into Illinois, and through the internet website http://www.westernsky.com (Exhibit H).
6. Defendant Great Sky Finance, LLC, also doing business as Great Sky Cash, Great Sky Cash, and GSky, is a South Dakota limited liability company with its principal place of business at 612 E Street, Timber Lake, South Dakota. (Exhibit I.) Great Sky advertises and offers loans to consumers through the Internet website http://www.greatskycash.com (Exhibit J).
7. Defendant Red Stone Financial, LLC, also doing business as Red Stone Cash, is a South Dakota limited liability company with its principal place of business at 612 E Street, Timber Lake, South Dakota. (Exhibit K.) Red Stone advertises and offers loans to consumers through the Internet website http://www.redstonecash.com (Exhibit L).
8. Defendant Management Systems, LLC, also doing business as GSky, is a South Dakota limited liability company with its principal place of business at 612 E Street, Timber Lake, South Dakota. (Exhibit M.) Management Systems advertises and offers loans to consumers through the Internet website http://www.managementsystemsllc.net (Exhibit N).
9. Defendant 24-7 Cash Direct, LLC, is a South Dakota limited liability company with its principal place of business at 612 E Street, Timber Lake, South Dakota. (Exhibit O) 24-7 Cash advertises and offers loans to consumers through the Internet website http://www.24sevensolution.com (Exhibit P).
10. Defendant Red River Ventures, LLC, is a South Dakota limited liability company with its principal place of business at 612 E Street, Timber Lake, South Dakota. (Exhibit Q.) In 2009, Red River advertised and offered loans to consumers through the Internet websiteshttp://www.togethercash.com and http://www.citiviewcash.com.
11. Defendant High Country Ventures, LLC, is a South Dakota limited liability company with its principal place of business at 612 E Street, Timber Lake, South Dakota. (Exhibit R.) In 2009, High Country advertised and offered loans to consumers through the Internet websiteshttp://www.cashtransfercenter.com; http://www.impactcashusa.com; http://www.cashnetusa.com and http://www.pdlloancent.com.
12. While the Red River Ventures, LLC and High Country Ventures, LLC websites are no longer active, Red River and High Country Ventures are a part of the common enterprises through which the Webb entities continued to offer loans.
13. Defendant Financial Solutions, LLC is a South Dakota limited liability company with its principal place of business at 612 E Street, Timber Lake, South Dakota. (Exhibit S.)
14. Defendants Payday Financial, Great Sky Finance, Western Sky Financial, Red Stone Financial, Management Systems, 24-7 Cash Direct, Red River Ventures, High Country Ventures, and Financial Solutions (collectively, “Webb entities”) have operated as a common enterprise while engaging in the lawful acts and practices alleged herein. The Webb entities have conducted the business practices described herein through interrelated companies that have common ownership, officers, managers, business functions, employees, and office locations. Because the Webb entities have operated as a common enterprise, each of them is jointly and severally liable for the acts and practices alleged herein.
15. On its website, http://www.paydayfinancialllc.com. Payday Financial states that it offers loans through the companies Lakota Cash, Big Sky Cash, Great Sky Finance, LLC, Red Stone Financial, LLC, and Western Sky Financial, LLC.
16. Defendant Martin A. “Butch” Webb resides in South Dakota. Webb is the owner and president of Payday Financial and the sole owner of Great Sky, Western Sky, Red Stone, Management Systems, and Red River. Webb serves as the registered agent of Payday Financial, Great Sky, Western Sky; Red Stone, Management Systems, 24-7 Cash, Red River, and High Country. Webb served as the authorized manger of Great Sky, Western Sky, Red Stone, Management Systems, and 24-7 Cash until their managing member, Payday Financial, dissociated in February 2011. Webb is the organizer, managing member, and registered agent of Financial Solutions.
17. Webb also registered and personally paid the fees associated with numerous internet domains registered by the Webb entities. A list of the domains is in Exhibit T and invoices in Exhibit U.
18. Webb created the Webb entities’ business model, oversees the lending operations, and supervises office activities of the Webb entities.
19. In a published response to a news article written about defendants, Webb refers to “[m]y internet lending business model,” “my company,” “my business,” and his personal supervision of defendants’ employees and involvement in borrowers’ repayment negotiations. (Exhibit V.)
20. Webb is a member of the Cheyenne River Sioux Tribe (“Tribe”), though he does not claim to be any type of Tribal official and is not listed among the Tribal officials on the Tribe’s website.
21. None of the Webb entities is owned or chartered by the Tribe or has any official Tribal capacity. Payday Financial, LLC, states on its website that it “is owned wholly by an individual Tribal Member of the Cheyenne River Sioux Tribe and is not owned or operated by the Cheyenne River Sioux Tribe or any of its political subdivisions.”
22. Defendants specifically exclude Tribe members from their loans.
23. At all times material to this complaint, acting alone or in concert with others, Webb has formulated, directed controlled, had the authority to control, or participated in the acts and practices set forth in this complaint, including particularly the decision to make loans to Illinois residents, the decision to advertise to Illinois residents, and the rates of interest charged.
24. Defendant Webb has formulated, directed, controlled, had the authority to control, or participated in the acts and practices of the Webb entities that constitute the common enterprise.
25. Defendants Does 1-5 are other persons or entities involved in the actions and omissions alleged herein, whose names and addresses are as yet unknown. On information and belief, one such Doe entity, doing business as WS Funding LLC, now owns the debt allegedly owed by plaintiff Linda Gonnella (and other Illinois consumers similarly situated) that was originated by Western Sky. The membership, place of business and registered agent for WS Funding LLC is not known; on information and belief, WS Funding LLC is related by Western Sky, Martin A. “Butch” Webb, or other Webb entities.
This entry was posted in Author: Matthew L.M. Fletcher, Research and tagged , , , , , . Bookmark the permalink.

9 Responses to Illinois Suit against On-Reservation Payday Lenders (Martin A. “Butch” Webb)

  1. Pingback: West Virginia Court Rules Martin Webb’s “Lakota Cash” Must Comply with State AG Subpoenas | Turtle Talk

  2. Pingback: Illinois Federal Court Upholds Payday Financial (Martin Webb) Forum Selection Clause | Turtle Talk

  3. Debbie says:

    We have noticed http://www.bigsky.com ads on television here in Reno,NV show no mention of the brokerage license number/s for this company and worse, there is no company listed in the name of Big Sky Financial LLC at the Dakota licensing site where such brokerages’ licensing can be checked by curious consumers so I suspected there was something suspicious afoot.

    Borrowers beware!

  4. dennis says:

    upper michigan

    • dennis says:

      ive also recieved a loan threw western sky finacial i borrowed 5000 by the time its paid off itll be 40,000 i made my payment of 486 today for the month of december they sold the loan to ws funding which is being collected threw CASH CALL out of anahiem calif i was told i could make larger payment ammounts when i took out the loan to pay down the principle as well as the payment when i made my payment today i ask about paying more they told me i could only make principle payments on the first of the month also that it would not reduce my payment only reduceing the term of the loan totally differant then what i was told to begin with i have contacted the bbb in nebraska also in calif also the federal trade commission ive been told that they are not liesenced in michigan there under the native american laws but sinse my loan was sold to cash call i believe sinse it has crossed state lines it should fall under the RICO ACT of raceteering as well as money laundering the states as well as the federal goverment do govern interest rates which can be charged PLEASE IF ANYONE KNOWS ANYONE ELSE I COULD CALL AS WELL AS FOLLOW UP ON THIS I WOULD GREATLY APPRICIATE IT THANK YOU DENNIS

      • Melba says:

        i am in the same position. Have you receive any help yet Dennis?

      • dennis says:

        hello melba no i havent recieved help as of yet but i have not stopped looking ill be in contact with a few more organazations soon i have found out this is not a liesinced organazation in some states also there are meny law suits against this company with more to come im sure colorado has a pending suit from there attorney general you may want to call your attorney general or the federal trade commission as well as the better bussiness bereau

  5. Chloe says:

    These people are frauds. If you have taken a loan out from them call your states attorney generals office and file a complaint. They are a disgrace to the Cheyenne Sioux River Tribe.

  6. carita mccoy says:

    Ive paid them high intrest rates and money three times can I be added to this law suit

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