Home / Business and Economy / Flexshopper Files for Bankruptcy Amidst Fraud Allegations
Flexshopper Files for Bankruptcy Amidst Fraud Allegations
23 Dec
Summary
- Flexshopper reported assets over $50 million and liabilities exceeding $100 million.
- The company's bankruptcy filing followed the termination of its former CEO.
- Allegations include forging documents and pledging non-existent collateral.
Flexshopper has initiated Chapter 11 bankruptcy proceedings, revealing significant financial distress with assets reported at a minimum of $50 million and liabilities exceeding $100 million. This action marks a critical turning point for the company.
The bankruptcy filing follows the recent termination of former CEO Russell Heiser in August. Flexshopper asserts that Heiser allegedly supplied forged documents to the company's auditor to support loan receivables and revenues.
Further accusations against the former CEO include pledging collateral that was either non-existent or failed to meet the necessary eligibility criteria for the company's lending facilities, as detailed in court filings.
