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CDA sues lawyer over unpaid loan
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Posted on Jun 07 2005
The Commonwealth Development Authority has sued a lawyer over an unpaid loan and interests amounting to over $17,000.
CDA attorney F. Matthew Smith filed with the Superior Court Friday a complaint against Joseph A. Arriola, asking the court to compel the defendant to pay over $17,592.79.
Smith also asked the court to seize the equipment, supplies and inventories mortgaged by Arriola to secure the CDA loan, so that they could be sold in auction to satisfy a possibly favorable judgment.
CDA’s complaint stated that the agency extended a $15,000 loan to Arriola on July 12, 1999. Arriola issued a promissory note to assure that he would make monthly payments for the loan from Oct. 12, 1999 to Sept. 12, 2002.
Arriola allegedly requested for a revision of the loan, which the CDA granted to make the new principal loan amount some $16,531.23 on Aug. 31, 2000.
Despite the revision, Smith said Arriola defaulted on the loan payment. As of April 5, 2005, Smith said Arriola’s remaining debt totaled $17,592.79, including interests and charges on top of nearly $14,000 in principal.
