Wells Fargo sues California tribe in dispute over $250M loan
FRESNO, Calif. (AP) — Wells Fargo is suing California’s Picayune Rancheria of Chukchansi Indians over a $250 million loan that the bank says the casino-owning tribe is avoiding paying back.
The Fresno Bee reported Saturday that the 2012 loan was issued to refinance debt from the Chuckchansi Gold Casino and Resort. It came with several requirements that the suit filed in New York last week alleges are not being met.
Chukchansi representatives did not immediately return calls from the newspaper seeking comment.
Wells Fargo claims the tribe is violating terms by stockpiling cash meant for loan repayments.
The complaint also accuses the tribe of informing investors that it would stop making payments after Sept. 30, 2019 — which the bank says violates the loan agreement.
The case was first reported by the legal news service Law360.
Information from: The Fresno Bee, http://www.fresnobee.com