Declaration of Michael Murphy in Support of Plaintiffs' Opposition to Motion to Dismiss — Marshall v. Prestamos CDFI, LLC (Dkt. 86-1)

Record facts

U.S. District Court for the Eastern District of Pennsylvania · No. 5:21-cv-04337-JMG · Doc. 86-1 · 2023-10-27 · Docket on CourtListener

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IN THE UNITED STATES DISTRICT COURT 
FOR THE EASTERN DISTRICT OF PENNSYLVANIA 
ALICIA MARSHALL, DANIEL PRONSKY, 
PARIS TOWNSEND, NANCILEE 
HOLLAND, LEONA OWSLEY, 
KOLAWOLE AHMADOU, KIANA 
DERVIN, KRISTINA HENDERSON, 
Case No. 5:21-cv-04337 
DUSTIN INNIS, KELLY STALNAKER and 
JAMIE JONES, 
individually and on behalf of all others 
similarly situated, 
Plaintiffs, 
v. 
PRESTAMOS CDFI, LLC, and CHICANOS 
POR LA CA USA, INC., 
Defendants. 
DECLARATION OF MICHAEL L. MURPHY IN SUPPORT OF PLAINTIFFS' 
OPPOSITION TO DEFENDANT CHICANOS POR LA CAUSA, INC.'S RENEWED 
MOTION TO DISMISS PLAINTIFFS' SECOND AMENDED COMPLAINT 
(FILED IN RESPONSE TO ECF NO. 84) 
Case 5:21-cv-04337-JMG     Document 86-1     Filed 10/27/23     Page 1 of 8

DECLARATION OF MICHAEL L. MURPHY 
I, Michael L. Murphy, declare as follows: 
1. 
I make this declaration under penalty of perjury that the foregoing is true and 
correct to the best of my information and belief. 
2. 
I am a member in good standing of the New York State Bar, the District of 
Columbia Bar, the Washington State Bar Association, and the West Virginia Bar and have been 
permitted by the Court to appear pro hac vice in this matter. ECF No. 7. 
3. 
I am a partner in the law firm of Bailey & Glasser LLP, the attorneys for Plaintiffs 
in this putative class action and I have personal knowledge of all the facts and circumstances in 
this action. 
4. 
I submits this Declaration in opposition to Defendant Chicano Por La Causa's 
("CPLC") renewed motion to dismiss. ECF No. 84. 
Exhibits 
5. 
FILED UNDER SEAL: Attached hereto as Exhibit 1 is a true and correct copy 
of the minutes ofCPLC Board of Directors' meeting of June 23, 2021 (PRESTAMOS-00296807 
to PRESTAMOS-00296810) [4 pages]. This document was marked as and referred to as Exhibit 
27 in the 30(b)(6) depositions of Defendants' corporate representatives. See ECF No. 84-1, Exs. 
1-2 (Nufiez & Martinez transcripts). 
6. 
FILED UNDER SEAL: Attached hereto as Exhibit 2 is a true and correct copy 
of materials prepared for the CPLC Board of Directors' meeting on August 25, 2021 
(PRESTAMOS-00297235 to PRESTAMOS-00297355) [121 pages]. This document was marked 
as and referred to as Exhibit 28 in the 30(b)(6) depositions of Defendants' corporate 
representatives. See ECF No. 84-1, Exs. 1-2 (Nufiez & Martinez transcripts). 
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7. 
Attached hereto as Exhibit 3 is a true and correct copy of a Message from Delma 
Herrera concerning the resignation of David Adame (Oct. 6, 2023), available at https://www. 
cplc.org/blog/viewoost.pbp?id= 1162. 
8. 
Attached hereto as Exhibit 4 is a true and correct copy of a printout from July 3, 
2023 from the Internet Archive, Prestamos CDFI, About Us, available at https://web.archive.org/ 
web/20230703104644/https://prestamoscdfi.org/about-prestamos/ (capture from July 3, 2023). 
9. 
Attached hereto as Exhibit 5 is a true and correct copy of a printout of CP LC, 
Leadership, from CPCL's website. This document was marked as and referred to as Exhibit 19 
in the 30(b)(6) depositions of Defendants' corporate representatives. See ECF No. 84-1, Exs. 1-2 
(Nufiez & Martinez transcripts). 
10. 
FILED UNDER SEAL: Attached hereto as Exhibit 6 is a true and correct copy 
of the materials for Prestamos's SBA Prime Grant Proposal (PRESTAMOS-00304036 to 
PRESTAMOS-00304213) [189 pages]. This document was marked as and referred to as Exhibit 
24 in the 30(b)(6) depositions of Defendants' corporate representatives. See ECF No. 84-1, Exs. 
1-2 (Nufiez & Martinez transcripts). The Levy Declaration includes excerpts ofthis document. 
See ECF No. 84-2, Ex. 4. 
11. 
Attached hereto as Exhibit 7 is a true and correct copy of a printout of CP LC, 
Small Business Lending from CPLC's website, available at https://cplc.org/econ/lending.php 
(last visited Oct. 24, 2023). 
12. 
Attached hereto as Exhibit 8 is a true and correct copy of a June 7, 2021 press 
release from CPLC related to its PPP lending activities (PRESTAMOS-00297374 to 
PREST AMOS-00297375). 
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13. 
Attached hereto as Exhibit 9 is a true and correct copy of the English version of a 
marketing flyer offering free consulting services in conjunction with Maricopa County 
(PRESTAMOS-00296916) [1 page]. 
14. 
Attached hereto as Exhibit 10 is a true and correct copy of the Spanish version of 
a marketing flyer offering free consulting services in conjunction with Maricopa County 
(PRESTAMOS-00296915) [1 page]. 
15. 
FILED UNDER SEAL: Attached hereto as Exhibit 11 is a true and correct copy 
of a presentation template listing "CPLC Prestamos CDFI" (PRESTAMOS-00296942) [1 page]. 
16. 
FILED UNDER SEAL: Attached hereto as Exhibit 12 is a true and correct copy 
oflntercompany Services Agreement (PRESTAMOS-00297006 to PRESTAMOS-00297012) [7 
pages]. This document was marked as and referred to as Exhibit 21 in the 30(b)(6) depositions of 
Defendants' corporate representatives. See ECF No. 84-1, Exs. 1-2 (Nunez & Martinez 
transcripts). 
17. 
FILED UNDER SEAL: Attached hereto as Exhibit 13 is a true and correct copy 
of the job description for Forgiveness Coordinator (PRESTAMOS-00296799 to PRESTAMOS-
00296803) [5 pages]. 
18. 
FILED UNDER SEAL: Attached hereto as Exhibit 14 is a true and correct copy 
of a Jose Martinez memo to David Adame and Alicia Nunez concerning PPP performance 
bonuses (PRESTAMOS-00297363 to PRESTAMOS-00297366) [4 pages]. This document was 
marked as and referred to as Exhibit 23 in the 30(b)(6) depositions of Defendants' corporate 
representatives. See ECF No. 84-1, Exs. 1-2 (Nufiez & Martinez transcripts). 
19. 
FILED UNDER SEAL: Attached hereto as Exhibit 15 is a true and correct copy 
of the materials prepared for the CPLC Executive Committee's meeting on June 22, 2023 
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(PRESTAMOS-00298339 to PRESTAMOS-00296684) [346 pages]. This document was marked 
as and referred to as Exhibit 29 in the 30(b)(6) depositions of Defendants' corporate 
representatives. See ECF No. 84-1, Exs. 1-2 (Nufiez & Martinez transcripts). 
20. 
FILED UNDER SEAL: Attached hereto as Exhibit 16 is a true and correct copy 
of a Lender Service Provider Agreement between Prestamos and Blueacom (PREST AMOS-
00296818 to PRESTAMOS-00296832) [15 pages]. This document was marked as and referred 
to as Exhibit 26 in the 30(b)(6) depositions of Defendants' corporate representatives. See ECF 
No. 84-1, Exs. 1-2 (Nufiez & Martinez transcripts). 
21. 
FILED UNDER SEAL: Attached hereto as Exhibit 17 is a true and correct copy 
of Prestamos's Credit Policy (PRESTAMOS-00302917 to PRESTAMOS-00302990) [74 pages]. 
22. 
FILED UNDER SEAL: Attached hereto as Exhibit 18 is a true and correct copy 
of July 13, 2021 email from Maria Spelleri to Jose Martinez regarding OIG investigations 
(PRESTAMOS-00299232) [1 page]. 
23. 
FILED UNDER SEAL: Attached hereto as Exhibit 19 is a true and correct copy 
of Prestamos CDFI, LLC's Consolidated Financial Statements, Years Ended June 30, 2022 and 
2021 (PRESTAMOS-00296728 to PRESTAMOS-00296761) [34 pages]. This document was 
marked as and referred to as Exhibit 11 in the 30(b)(6) depositions of Defendants' corporate 
representatives. See ECF No. 84-1, Exs. 1-2 (Nufiez & Martinez transcripts). 
24. 
Attached hereto as Exhibit 20 is a true and correct copy of CPLC's Consolidated 
Financial Statements YE June 30, 2020 (PRESTAMOS-00299609 to PRESTAMOS-00299675) 
[67 pages]. This document was marked as and referred to as Exhibit 14 in the 30(b)(6) 
depositions of Defendants' corporate representatives. See ECF No. 84-1, Exs. 1-2 (Nufiez & 
Martinez transcripts). 
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25. 
Attached hereto as Exhibit 21 is a true and correct copy of CPLC's Consolidated 
Financial Statements YE June 30, 2022 (publicly available) [74 pages]. This document was 
marked as and referred to as Exhibit 16 in the 30(b)(6) depositions of Defendants' corporate 
representatives. See ECF No. 84-1, Exs. 1-2 (Nufiez & Martinez transcripts). 
26. 
Attached hereto as Exhibit 22 is a true and correct copy of the search screen from 
the Commonwealth of Pennsylvania, Department of State's Charities Search page for Chicanos 
Por La Causa, available at https://www.charities.pa.gov/#/page/searchCharities (last visited Oct. 
24, 2023) [1 page]. 
2 7. 
Attached hereto as Exhibit 23 is a true and correct copy of a printout of Chicanos 
Por La Causa, Financial Disclosures, available at https://cplc.org/about/legal-privacy.php (last 
visited Oct. 24, 2023) (identifying Pennsylvania one of eleven states where it is registered to 
conduct business) [2 pages]. 
References to Exhibits in CPLC's Renewed Motion to Dismiss 
28. 
Plaintiffs' Opposition to Defendant CPLC's Renewed Motion To Dismiss 
Plaintiffs' Second Amended Complaint refers to and incorporates the following documents that 
Defendant included in its Motion to Dismiss: 
29. 
FILED UNDER SEAL: Plaintiffs refer to the 30(b)(6) transcript of Alicia Nufiez 
(Sept. 22, 2023), which is included in the Levy Declaration, ECF No. 84-1, Ex. 1. Plaintiffs do 
not dispute that the document represents a true and correct copy. 
30. 
FILED UNDER SEAL: Plaintiffs refer to the 30(b)(6) transcript of Jose 
Martinez (Sept. 22, 2023), which is included in the Levy Declaration, ECF No. 84-1, Ex. 2. 
Plaintiffs do not dispute that the document represents a true and correct copy. 
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31. 
FILED UNDER SEAL: Plaintiffs refer to The Fourth Amended and Restated 
Operating Agreement of Prestamos CDFI, LLC (PRESTAMOS-00307735 to PRESTAMOS-
00307743) [9 pages], which is included in the Levy Declaration, ECF No. 84-1, Ex. 5. Plaintiffs 
do not dispute that the document represents a true and correct copy. 
32. 
Plaintiffs refer to Prestamos CDFI, LLC's Consolidated Financial Statements, 
Years Ended June 30, 2021and2020 (PRESTAMOS-00296762 to PRESTAMOS-00296794) 
[33 pages], which is included in the Levy Declaration, ECF No. 84-1, Ex. 7. Plaintiffs do not 
dispute that the document represents a true and correct copy. This document was marked as and 
referred to as Exhibit 10 in the 30(b)(6) depositions of Defendants' corporate representatives. See 
ECF No. 84-1, Exs. 1-2 (Nufiez & Martinez transcripts). 
33. 
FILED UNDER SEAL: Plaintiffs refer to the Intercompany Services Agreement, 
dated February 20, 2020 (PRESTAMOS-00296999 to PRESTAMOS-00297005) [7 pages], 
which is included in the Levy Declaration, ECF No. 84-1, Ex. 10. Plaintiffs do not dispute that 
the document represents a true and correct copy. This document was marked as and referred to as 
Exhibit 32 in the 30(b)(6) depositions of Defendants' corporate representatives. See ECF 
No. 84-1, Exs. 1-2 (Nufiez & Martinez transcripts). 
34. 
FILED UNDER SEAL: Plaintiffs refer to the Resolution of Prestamos CDFI's 
Board of Directors, dated February 20, 2020 (PRESTAMOS-00297013 to PRESTAMOS-
00297015) [3 pages], which is included in the Levy Declaration, ECF No. 84-1, Ex. 11. 
Plaintiffs do not dispute that the document represents a true and correct copy. This document was 
marked as and referred to as Exhibit 33 in the 30(b)(6) depositions of Defendants' corporate 
representatives. See ECF No. 84-1, Exs. 1-2 (Nufiez & Martinez transcripts). 
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35. 
Plaintiffs refer to CPLC's Consolidated Financial Statements YE June 30, 2021 
(PRESTAMOS-00307578 to PRESTAMOS-00307653) [76 pages], which is included in the 
Levy Declaration, ECF No. 84-1, Ex. 12. Plaintiffs do not dispute that the document represents a 
true and correct copy. This document was marked as and referred to as Exhibit 15 in the 30(b)(6) 
depositions of Defendants' corporate representatives. See ECF No. 84-1, Exs. 1-2 (Nufiez & 
Martinez transcripts). 
36. 
FILED UNDER SEAL: Plaintiffs refer to the table denoting payments 
purportedly made under the Intercompany Services Agreement, which is included in the Chen 
Declaration, ECF No. 84-2, Ex. 1. Plaintiffs have no basis to dispute that the document 
represents a true and correct copy of what it purports to be and accepts Defendants' 
representations. 
Dated: October 27, 2023 
7 
::;p;;8?LLP 
Michael L. Murphy 
1055 Thomas Jefferso 
Washington, DC 
7 
T: 202.463-2101 
F: 202.463-2103 
mmurphy@baileyglasser.com 
Case 5:21-cv-04337-JMG     Document 86-1     Filed 10/27/23     Page 8 of 8

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