A Pennsylvania lender is suing Washington running back Adrian Peterson, claiming he defaulted on a $5.2 million loan.
Daniel Kaplan of The Athletic has the details.
Lawsuit filed in New York
DeAngelo Vehicle Sales (in this case, investment vehicle, not a car) has filed suit in New York against Peterson, claiming he has defaulted on a $5.2 million loan. Peterson used at least some of the loan to pay other debts, including money owed to a “pay day lender.”
With interest and legal fees, Peterson now owes DeAngelo (or DVS) $6.6 million.
The company served Peterson last September by sticking the summons to the front gate of his Houston home, according to court papers.
Documents filed with the New York State Supreme Court show Peterson borrowed the initial $5.2 million on Oct. 26, 2016, when he was still with the Minnesota Vikings.
According to the terms of the loan, Peterson was to pay back all of the money, plus 12 percent interest, four months later. If he didn’t, another 10 percent interest rate accrued on top of the initial 12 percent.
Peterson’s attorney Chase Carlson declined to comment directly on the matter, but in a statement he said, “this is yet another situation of an athlete trusting the wrong people and being taken advantage of by those he trusted. Adrian and his family look forward to sharing further details when appropriate.”
My statement regarding Adrian Peterson: pic.twitter.com/k4BbxuynZM
— Chase Carlson (@ChaseACarlson) July 23, 2019
Not the first loan
The loan from DVS wasn’t the first for Peterson, nor the first he defaulted on.
He used the $5.2 million from DVS to pay back a loan of nearly $3.2 million to Thrivest Specialty Funding and another $1.34 million to Crown Bank.
In 2018, a Minnesota court ordered Peterson to pay the final unpaid $600,000 to Crown Bank on a $2.4 million loan.
A Maryland judge declared last week that Peterson had to pay another creditor, Democracy Capital Corp., the $2.4 million he owed.
The lawsuit in New York has even more controversy – there are charges that the lawyer for DVS represented Peterson in a different lawsuit, creating a conflict of interest.
Because of that charge, the judge canceled Peterson’s scheduled deposition on Monday, and there was a hearing that in part centered on allegations that Peterson’s confidential information was not properly obtained.
In court documents, Peterson’s lawyer called Thrivest “some sort of pay day lender for professional athletes and the insurance policy at issue had been procured to secure a loan agreement with Peterson.”
The insurance policy is known as a loss of value policy, taken out by athletes to make up the difference if they’re injured and thus sign a smaller contract.
That happened to Peterson. He got the Thrivest policy in August 2016; just a few weeks later, in Week 2 of the regular season, he tore his meniscus and sprained his later collateral ligament. The Vikings released him after the season, and he signed with the New Orleans Saints for $3.5 million.
That apparently triggered the insurance policy, which set Peterson’s salary floor at $4 million per year.
Thrivest sold Peterson’s claim to DVS, and controversy followed.
Almost $100 million in career earnings
Peterson has earned almost $100 million during his NFL career, far more than any running back in league history.
That amount, of course, is on paper, since taxes, NFLPA dues and agent’s fees are subtracted.
But it seems like Peterson has dug himself a hole with creditors.
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