Jul 29, 2014
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Bank Alleges Schroeder Committed Fraud in Lawsuit

Atlantic Stewardship Bank filed a complaint against State Assemblyman Robert Schroeder for $2.5 million in loans.

Bank Alleges Schroeder Committed Fraud in Lawsuit

State Assemblyman Robert Schroeder allegedly failed to disclose millions of dollars worth of loans to Atlantic Stewardship Bank when applying for loans there, according to a complaint filed last Thursday.

The bank alleges it loaned $2 million to Schroeder in September of 2010 and later extended the loan to $2.5 million. When Schroeder borrowed the money, he did not disclose loans from other lenders totalling more than $5.6 million — lent between April of 2007 and March of this year — according to the complaint.

"The borrowers commited fraud on the bank," according to the complaint.

Schroeder was due to pay back the first $1 million plus interest last month, along with another $500,000 and interest in September, October and November. The complaint lists Schroeder and his two Hillsdale-based companies — and Hercules Global Logistics — as defendants.

The undisclosed loans ranged from $250,000 from JCB Realty, $275,000 from John Baldino and up to $1,356,000 from Frank Grasso and $1,385,000 from Philip LaBossiere, according to the complaint. More than 10 loans were allegedly not disclosed.

In the suit, the bank requested money due to Schroeder from the federal government. Both API and Hercules contracted with government agencies, including the military.

Schroeder has been sued by many people who say he owes them money over the past few weeks, and state officials .

Most recently, the Washington Township-based for more than $3.5 million in loans he allegedly missed payments on.

Attorneys for Schroeder and Atlantic Stewardship Bank did not respond to requests for comment Tuesday.

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