Robert Edward Auctions has filed suit against a New York Catholic school, its president and chief financial officer over what they claim is an illegal loan obtained with collateral that should belong to them.
The suit, filed in New Jersey Superior Court, is the latest salvo in a battle between REA and one of its former clients. It names Ray Nash, a long time coach Bishop Ford Catholic High School as well as John Casey, chief financial officer, the school itself and five unnamed people associated with the Brooklyn school. Attorneys for REA are claiming unjust enrichment, interference with prospective economic advantage, civil conspiracy and fraudulent conveyance.
Ahead of his company's 2007 auction, REA president Rob Lifson says he loaned $900,000 to Peter Nash, a long-time collector, former REA client and the son of Ray Nash. Peter Nash, former front man for the rap group 3rd Bass, provided memorabilia, including the first pitch baseball from Fenway Park's 1912 opening, as collateral, some of which was to be sold in the auction.
The suit says REA later discovered not all of those items could be authenticated while some were deemed non-genuine and others didn't legally belong to Nash. All were pulled from the sale and after the auction, REA claims Nash still owed over $600,000. An earlier report in the New York Daily News confirmed that in March of 2007, Ray Nash borrowed $52,551 from the Bishop Ford development fund to keep his son's home from going into foreclosure.
The suit claims the money was paid back to Bishop Ford through a loan Peter Nash obtained from another individual, again using memorabilia as collateral, including some items "pledged or promised to REA as security for the earlier loans" the company had given to Peter Nash.
The suit states that not only did Bishop Ford officials break federal laws with the private loan, but the collateral provided to ensure prompt reimbursement of the school's development fund "interfered with the ability of REA to collect on and satisfy the judgment" against Peter Nash.
The suit seeks damages, punitive damages and court costs.
See it below (addresses have been removed).