Yellowstone Capital LLC, FTC v.

Last Updated:
Case Status:
Pending
Federal Trade Commission, Plaintiff v. Yellowstone Capital, a New York limited liability company; Fundry LLC, a New York limited liability company; Yithak D. Stern a/k/a Isaac Stern, individually and as an officer of Yellowstone Capital LLC and Fundry LLC; and Jeffrey Reece, individually and as an officer of Yellowstone Capital LLC and Fundry LLC, Defendants.
FTC Matter/File Number:

182 3202

Docket Number:

1:20-cv-06023

Federal Court:
Southern District of New York

Case Summary

Yellowstone Capital, a provider of merchant cash advances, will pay more than $9.8 million to settle Federal Trade Commission charges that it took money from businesses’ bank accounts without permission and deceived them about the amount of financing business owners would receive and other features of its financing products.

Merchant cash advances are a form of financing in which a company provides money to a small business up front in exchange for a larger amount repaid through daily automatic payments. In this case, the FTC alleged that Yellowstone and its owners continued withdrawing money from businesses’ bank accounts for days after their balance had been repaid. The complaint alleged that these unauthorized withdrawals left businesses without needed cash and that any refunds from the company could take weeks or months.