Chevy 73 and M&T Bank Division: Phoenix Management Services Client M&T Bank, the “Bank” ? retained Phoenix Management Services to work with its borrower, Chevy 73, Inc. Chevy 73 was consistently a top-3 market share leader among Chevrolet auto-dealers in the Mid-Atlantic region with premises located in Berlin, New Jersey. Problem M&T Bank uncovered a $7 million out-of-trust (under collateralization) position on its $26 million Floorplan Credit Facility to the Company. It was alleged that the Company had committed fraudulent activities in selling vehicles “out of trust”? whereby the vehicles were sold and paid for, with the proceeds being retained by the Company and not paying off the Floorplan loan against the sold vehicle The Bank continued to have $19 million of Floorplan loans collatera

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