CLARKSBURG – A bank has filed suit against five business partners and their newly constructed Morgantown developments, alleging the defendants owe it millions of dollars in unpaid loans.
The Huntington National Bank claims defendants Patrick D. Alexander, Larry A. Palumbo, David A. Biafora, Richard A. Biafora, Robert T. Toth, T C Townhouses, Suncrest Village and WX borrowed millions from it, but have failed to repay the loans.
On March 16, 2007, for example, T C Townhouses borrowed $2.8 million from Huntington National, and Alexander, Palumbo, David A. Biafora, Richard A. Biafora and Toth guaranteed repayment of the notes, according to the complaint filed July 13 in U.S. District Court.
On Feb. 22, 2008, Suncrest Village, Alexander, Palumbo, David A. Biafora, Richard A. Biafora and Toth executed a commercial loan for $1.5 million, the suit states.
On Aug. 18, 2008, Suncrest Village borrowed $8 million, plus an additional $2.83 million in a commercial loan transaction, the suit states. The same group of defendants acted as guarantors for the Suncrest Village loans, the complaint says.
And again on March 23, 2009, Sunset Village, Alexander, Palumbo, the Biaforas and Toth borrowed $846,971.87 from the bank, it claims. They continued to borrow money – an additional $400,000 – from the bank on Oct. 14, 2009, according to the complaint.
By May 1, the defendants defaulted on their payments, the suit states.
They now owe $2,041,050.50, plus $4,690.53 in interest on the March 16 note; $1,500,000 on the Feb. 22 loan and $1,875 in interest; $5,326,421.50 on the Aug. 18 note, plus interest of $7,393.16, and $1,740,500 on the commercial loan, plus $2,419.42 in interest; $846,971.87 on the March 23 loan, plus interest of $1,646.89; and $400,000 on the Oct. 14 loan, plus interest of $1,047.70, the complaint says.
In addition to the money it says it is owed, Huntington Bank seeks costs and attorney's fees, plus other relief the court deems just.
Gordon H. Copland and Donald J. Epperly of Steptoe and Johnson in Clarksburg will be representing it.
U.S. District Court case number: 1:10-cv-104