Complaint in Eagle Private Equity, LLC v. Lower Brule Community Development Enterprise, LLC — Business Deal Gone Bad

Matthew L.M. Fletcher

Here is the complaint, filed in the Eastern District of Missouri:

Eagle Private Equity Complaint

Update: Case voluntarily dismissed ten days after filing — 4 DCT Order

Here are snippets of the alleged facts:

6. Brule Community is the lender and Western Holdings is the borrower of a certain $22,519,638 note, that is guaranteed by the United States Government under the Department of Interior, Bureau of Indian Affairs, Loan Guaranty Certificate No. G103D1A1501.
7. Brule Community wanted to monetize their United States Government guaranteed loan to Western Holdings and realize cash for other development projects.
8. Eagle offered to consult with and help Brule Community monetize their loan into cash.
9. Eagle and Brule Community entered into their first written contract on August 23, 2011.
10. That August 23rd, 2011 contract promised Eagle a 5% fee from Brule Community.
11. On September 22nd, 2011 a second agreement was entered into between Brule Community and Eagle, which adopted the 5% fee from the August 23rd, 2011 contract.
12. On December 21, 2011 a third agreement was entered into between Brule Community and Eagle.
13. That December 21, 2011 contract promised Eagle a 5% fee from Brule Community, with the bonus payment of 1% more (6% total) if the transactions closed prior to January 30, 2012.
14. On January 20, 2012 Brule Community entered into an agreement to sell their loan agreement with Western Holdings to Seaport Loan Products LLC (hereinafter “Seaport”) for $19,254,290.00.
15. The trade confirmation stated, “All Parties to use best efforts to settle in 5-10 business days.”
16. The trade did not settle in 5-10 days.
***
20. All parties, Brule Community, Western Holdings, Eagle, Seaport, and Farm Credit Services of America (the ultimate buyer, hereinafter “Farm Credit”) continued their efforts to settle the trade according to the second trade confirmation.
21. Unknown to Eagle, Seaport, and Farm Credit, Brule Community had begun negotiations with Great American Insurance Group (hereafter “Great American”).
22. Brule Community and Western Holdings, in a recorded conversation through their CEO, President, and officer, assured Eagle that “One, you are going to get paid, and two, the note is not going to get sold out from under you.”
23. Brule Community never informed Eagle, Seaport, or Farm Credit that it was negotiating with another buyer.
24. Brule Community never gave notice to Eagle or Seaport that there was a deadline by which the Seaport trade must close.
25. Brule Community never gave notice to Eagle or Seaport that it was cancelling the trade with Seaport.
26. Upon information and belief, Brule Community monetized their loan to Western Holdings for an amount greater than $19,254,290.00.
27. Brule Community is refusing to settle their trade with Seaport and Farm Credit.
28. Brule Community is refusing to pay Eagle their 6% fee.

 

7 thoughts on “Complaint in Eagle Private Equity, LLC v. Lower Brule Community Development Enterprise, LLC — Business Deal Gone Bad”

  1. Charles May 18, 2012 / 5:23 pm

    Sad that the enrolled members of the Lower Brule Tribe know nothing about this, it just goes to show that no info is being shared with the enrolled members of the tribe, everything is done in secert or behind closed doors.

  2. Pingback: Second Contract Breach Claim against Lower Brule | Turtle Talk
  3. Theresa Long Turkey June 4, 2012 / 2:06 pm

    When will these crooks be held accountable for misrepresenting the enrolled members of the Lower Brule Sioux Tribe. We have been given no information about any of this. And no we did not elected these crooks the election is as rigged as the deal we’re being sued over. So glad the Gov’t is willing to spend millions to make sure third world countries all over the world get fair elections but we can’t get anyone to come to the small little reservation in the middle of south dakota to make sure we do.

  4. Vicki Ziegler December 23, 2012 / 3:56 pm

    What economic developement, it sure didn’t develope any businesses in Lower Brule.

  5. lakota george estes February 28, 2013 / 1:35 pm

    again they taking monies away from our people and they do not care. I hope our lands and other assets will not be lost in this money never ending of law suits that is going around the united states. I am trying to find what the 15 corporations the “bad ones” created for their own benefit.

  6. Pingback: Lower Brule Community Tribal Business Entity Not Immune from Suit; Some Claims Dismissed on Merits | Turtle Talk
  7. barbara bad horse July 25, 2016 / 7:47 pm

    Why isn’t anything being done about this they talk about violating the Constitution and by-laws procedures and policies they do not follow but yet they talk about it why, is nothing being looked into? Enough is enough our people have been hurt too long they suffered and they live In proverty .No Jobs, no housing,It is really sad to see these people living this way it’s time for a change.I hope one day we get some new leadership into the Tribe that will look after the people not only themselves and their families but the people they are really hurting and I really do not like to see my people Suffer. ,I’m hoping one day we will stand together as one tribe and become one and be there for each other and help each other out and lift each other up.

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