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

A leading provider of merchant cash advances used deception to lure small business customers, then regularly withdrew money from their accounts without consent even after the customers had repaid the money they owed, according to a Federal Trade Commission lawsuit.

The FTC’s complaint against Yellowstone Capital, Fundry, founder and CEO Yitzhak Stern, and president Jeffrey Reece, alleges that they unlawfully withdrew millions of dollars in excess payments from their customers’ accounts, and to the extent they provided refunds, sometimes took weeks or even months to provide them.