JONESBORO — A Virginia-based financing company is suing Kade Holliday and corporations associated with him to recover more than $200,000 it claims Holliday fraudulently borrowed.
Kapitus Servicing alleges that Holliday misrepresented his stake in Twisted Foods on loan applications and failed to make payments, according to the civil complaint. The financier filed a civil suit Friday on 10 counts, which include breach of contract, fraud and deceit; constructive fraud and unjust enrichment.
He applied as the sole owner of the business when he really had a 30 percent stake in the entity, the lawsuit contends. Holliday and Kapitus entered four financial agreements, which gives the financier a “security interest” in Total Healthcare if the loans default.
Since July 2019, Kapitus deposited money in accounts associated with Holliday, Twisted Foods and Holliday Development & Management. In the latest agreement, Kapitus deposited funds on June 12 to a Centennial Bank account belonging to Total Healthcare, the suit reads.
When the company tried to initiate an automatic payment from the account on June 30, it bounced back due to insufficient funds.
Bank accounts associated with Holliday were frozen as part of a criminal probe against Holliday, in which law enforcement claims he stole nearly $1.6 million in public funds, abused his official capacity as Craighead County clerk and forged a woman’s name on a liquor license application.
“Further attempts to initiate ACH debits from the account were unsuccessful due to the account being frozen,” the complaint stated. “Pursuant to the June 2020 agreement, Total Healthcare and Holliday promised to pay Kapitus the sum of $208,171.68 plus all fees and costs … which included amounts due and owing from the July 2019 agreement, December 2019 agreement and February 2020 agreement.”
In another civil suit, Holliday was being sued by for defaulting on a Simmons Bank loan for a property in Jonesboro’s 700 block of Locust Drive. The suit filed in July indicates that more than $86,000 is owned in mortgage payments, as well as interest and other charges accrued within the last three years.
Following a proposed order on behalf of the bank, Circuit Judge Richard Lusby ordered that the foreclosure suit be dismissed without prejudice.