JACKSON, Miss. (WJTV) — The defendant that authorities said Hinds County District Attorney Robert Shuler Smith allegedly advised has been named in a lawsuit.
This time, a Florida Finance company is suing Christopher Butler, Mega Mattress & Furniture Outlet, Jay Samander and others. The lawsuit was filed August 22, 2016.
The lawsuit alleges that Bulter and Samander, who were employed by Mega Mattress, schemed and worked together to fraud U-Own.
The complaint states that U-Own provided consumer financing services for Mega Mattress customers starting in July 2014. To get furniture financed, one of the criteria that the client must meet is to have an existing checking account.
U-Own would pay the retailer the full purchase price and then enter into a loan relationship with the customer.
U-Own alleges that Butler would meet with applicants, take them to a financial institution to set up a checking account. The complaint states that the accounts were set up and not intended to be used for ordinary banking purposes, but only to satisfy U-Own’s loan requirements.
The applicants would then return to the furniture store and apply for financing. The lawsuit says Mega Mattress would complete the loan package and Samander would sign off on it. The package would then be submitted to U-Own.
The company said that said they started seeing an abnormal amount customers delinquent on their credit card payments in September 2015.
U-Own would contact some of the customers, and they found out that they were denied financing, and they had never received furniture from the store.
The lawsuit states that the defendants enticed U-Own to advance hundreds of thousands of dollars for transactions that never occurred. U-Own said they filed the lawsuit to try to prevent another company from going through the same thing they did.
The company is suing for compensatory, punitive damages and other fees.
D.A. Smith was arrested in June for allegedly advising Butler on charges pending against him. Smith was accused of hindering prosecution. Butler was facing embezzlement and wire fraud charges.