Law Firm Loan Deals Anger Businesses Searching for Missing Money

The deal was too good to pass up for seven companies in search of financing—get a 10-year loan at 6% interest for a 25% payment up front.

The companies, including a Florida kosher food operator and a Utah hospitality consultant, collectively sent more than $10 million for their down payments in 2023. But the loans never appeared, and the businesses are in court trying to get the deposits back.

The alleged theft “devastated” the companies, Kenneth Chase, counsel for five of them, said in court filing. The scam drove New York digital marketing and content creation company Abbson out ...