A judge handed a $23.9 million ruling to an investment firm that gave a loan to a car wash owner outside Phoenix last week, ruling that the owner overstated the value of his car washes in securing the loan.
The Phoenix Business Journal reports that Danny’s Family Car Wash owner Danny Hendon was part of a development group that received a $7.8 million loan in 2007 from Diversified Funding Group LLC, or DFG, out of Scottsdale, Arizona. Hendon signed a personal promissory note.
In 2010, DFG sued Hendon and won. Hendon subsequently filed for Chapter 11 bankruptcy protection. On Aug. 13, a U.S. Bankruptcy Court judge ruled against Hendon in favor of DFG.
Separately, Hendon pleaded guilty to hiring illegal workers and giving them fraudulent IDs.
Read the rest of the story from the Phoenix Business Journal.