Bank of Utica filed a civil lawsuit several months ago against GroWest, Inc, the now-infamous West Utica-based nonprofit housing rehabilitation agency.
The suit seeks $255,302, plus interest and attorney fees, for money the bank lent to GroWest in August 2010.
According to court documents, GroWest agreed to pay the sum back in three months.
But the agency all but collapsed, and now exists as a volunteer board of directors with no paid employees.
The most recent court documents involving the suit at the Oneida County Clerk’s Office are from December, and officials from both GroWest and the bank declined comment.
The city hired J.K. Hage III’s law firm in April 2010 after GroWest board members brought up possible financial improprieties, a move which lead to a slew of civil lawsuits against former GroWest employees and contractors. The city is pursuing civil action against GroWest itself, as well.
Hage’s work also included production of a report on GroWest and the way the city administers federal money.
The FBI and federal Department of Housing and Urban Development also commenced probes into the situation.
Original Article from the OD.com
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