Cash-Advance Pioneer Yellowstone Accused of Deception by FTC (1)
By Bob Van Voris and Zachary R. Mider
Aug. 3, 2020, 5:29 PM
Yellowstone Capital LLC, a pioneer in a form of unregulated lending known as merchant cash advance, was accused by federal regulators of deceiving small-business customers, hitting them with surprise fees and overcollecting on debts.
The Federal Trade Commission filed a lawsuit against Yellowstone in federal court in Manhattan on Monday claiming the firm engaged in deceptive and unfair business practices and asking a judge to order restitution for customers. The suit also names Chief Executive Officer Yitzhak “Isaac” Stern and President Jeffrey Reece.
Calls, emails and text messages to the executives and to the company’s outside lawyer weren’t immediately answered....