City Council Gave 3 Million to Stranger in 2013. Atlantic City Wants Money Back.

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.

Atlantic City
3 Million to a Stranger.

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.

Former AC Mayor Langford believed $3 million ZeMurray deal would make money for the Atlantic City. Langford still tight lipped about situation with no comment to date.

Read More in Press of Atlantic City

Read More in Philly.com

Attorney is NO SHOW

Leave a Comment

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.