The plaintiff advanced funds to a partnership operated by relatives pursuant to promissory notes and personal guarantees, including a $1,000,000 loan with an option to convert to equity.
The defendants asserted that the plaintiff elected to convert the loan to equity through a signed authorization, while the plaintiff alleged the document was forged.
The court found the authorization document to be a forgery and held that the plaintiff remained a lender entitled to repayment under the promissory note and guarantees.
The plaintiff also sued a bank for releasing funds from his account without authorization.
The court held that the plaintiff was bound by verification provisions in the bank’s Financial Services Agreement, which relieved the bank of liability due to the plaintiff’s failure to review and report account discrepancies.
