A pileup of financial troubles
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Fred Yeo, chief financial officer for National Swim Center Corp, has a $12 million judgment lien against him.
The judgment stems from a breach of contract case filed in December 2010, according to public records in Travis County, Texas.
The defendants in the case were Yeo, Andy Sarwal, a director of National Swim Center Corp. at the time, and two of Sarwal's companies.
Although the lawsuit did not involve National Swim Center Corp., Yeo and Sarwal were directors of that company when it filed a certificate of formation with the Texas Secretary of State in June 2009 and when it formed as a corporation in Florida that same month.
The lawsuit against them was filed by the lenders for a stalled project in Austin. The lenders said the defendants, who were supposed to be the developers, defaulted on promissory notes for a $39 million construction loan.
The lenders foreclosed.
After the lenders applied the proceeds from the foreclosure sale, a deficiency of $11,491,916 remained, according to court documents.
The lenders contended that Yeo and Sarwal, who had guaranteed the loan, were liable for the deficiency and for the breach of contract.
Yeo never responded to the lawsuit, and a default judgment was entered against him for $11,491,916 in damages and interest of $614,311, plus attorneys fees, according to court documents.
Sarwal filed for Chapter 7 bankruptcy on April 1, 2011. In a court document dated Oct. 3, 2011, the lenders and Sarwal agreed that the debt he owed would not be eliminated in the bankruptcy proceeding, and a judgment of $12,548,606 against Sarwal was issued.
In May 2011, the month after Sarwal filed for Chapter 7, National Swim Center Corp. amended its corporate filings in Texas, removing Sarwal and Yeo as directors.
The company did not remove them from its Florida filings.
Another dark cloud
John McIlhargy, executive director of National Swim Center Corp., also has a troubled financial record.
McIlhargy is facing foreclosure on his home in Stony Point, N.Y.
J.P. Morgan Bank has filed an action for foreclosure on the home, contending that McIlhargy and his wife defaulted on the mortgage on April 27.