Birdman is suing the lender who gave him a $12 million loan — which eventually led to the loss of his Miami mansion — accusing them of structuring the deal so that he couldn’t afford to make the payments.
According to court documents obtained by The Blast, the music mogul claims the “predatory” loan provided to him by EMG Transfer Agent “had toxic terms.” He says the company was “relying upon the equity” in his mansion and “ignoring his ability to repay.”
He claims the company tried to disguise the loan as being for “business purposes” instead of for his personal use — the money went back into the home, to pay off a tax lien and to pay off another loan — in an effort to get around the law.
He claims they assessed an illegal interest rate of 25% making it impossible for him to continue paying on the loan.
Birdman is suing EMG Transfer Agent demanding “the return of all money or property given as earnest money or down payment” and for the termination of the loan, along with the return of all finance charges and unspecified damages.
As The Blast first reported, Birdman recently gave up his fight to save his Miami mansion from being taken in his $12 million legal battle and decided to sell the property rather than duke it out in court.