ATLANTIC CITY City Council says they don’t know much about ZeMurray Street Capital. But Council was cool with giving ZeMurray $3 million back in 2013. The monies were to be used to launch a loan program in 2013.
Lorenzo Langford was mayor at the time and ZeMurray Street Capital is partially owned by a family trust run by relatives of an aide to Langford.
Atlantic City now wants the money back, so they filed a lawsuit in August of 2014. A few weeks ago, Felix P. Gonzalez, Drummon’s attorney, was a no show for a preliminary hearing on the case.
The loan program that was supposed to lend as much as $40 million to struggling Atlantic City homeowners and businesses. Loans were never provided.
Lawyer for ZeMurray & Drummon Denies Atlantic City Claims. Says City Lawyers Reviewed Loan Program.
According to the Press of Atlantic City, in May of 2013, council approved a memorandum of understanding with ZeMurray Street Capital LLC lead by W. Wesley Drummon.
Via the Council resolution vote, the memorandum authorized ZeMurray to administer a community lending program. Atlantic City says Drummon never provided any loans and never showed how those funds were being used.
Atlantic City alleges Drummon used money to purchase TN Bidco, a Tennessee loan company connected with Gary & Michael Lax, brothers to Eddie Lax, aid to sitting mayor at time; Lorenzo Langford.
NOTE: TN Bidco is being sued in Tennessee Court for allegedly defaulting on a $1.5 million loan from a Tennessee bank. The Associated Press: TN Bidco no longer working with Small Business Administration.
Councilman Steven Moore, a co-sponsor of the resolution, says it was supposed to provide low-cost loans for residents to fix their homes. Former City Council President Bill Marsh, another co-sponsor, said project would help provide local business loans. Councilman Marty Small; another co-sponsor of that $3 million, said he wasn’t familiar with Drummon or ZeMurray.