A resolution has been reached in the Commonwealth’s lawsuit against Luta Mermaid, LLC, with a consent judgment to recover $400,000 in public funds that were advanced to Luta Mermaid LLC, to be paid across five years.
According to an Office of the Attorney General statement last Tuesday, the settlement includes the entry of judgment for the full $400,000 jointly and severally against the individual principals of MV Luta.
It also provides for payment to be made over the next five years.
“The settlement represents a victory for the people of the Commonwealth,” said Attorney General Edward Manibusan.
He said the OAG’s Civil Division staff worked hard in obtaining a judgment and to ensure that the individuals who benefitted from the loan were held personally accountable.
“With the resolution of the case, the Commonwealth will be able to look to their personal assets in the event they breach the settlement agreement. The Commonwealth looks forward to the recovery of public funds and we can now put this matter behind us,” Manibusan added.
The lawsuit began in 2017 against the company’s principals.
The Commonwealth alleged that public funds were transmitted to Luta Mermaid without first reaching an agreement on repayment and sought recovery of the funds. (OAG)