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What Capital Plus owed in December 2022, line by line

On December 21, 2022, Capital Plus Financial sent Blueacorn a reconciliation of the PPP fees it had not yet paid: $109,039,087.00 in seven lines. Blueacorn reproduced the summary in a Texas court filing in March 2023. Here is each line, the later record that bears on it, and how firmly that record ties to the line.

The list

  • Documented A court order or the company’s own financial statements record it.
  • Reported A party’s court filing says it; no court record or company statement we have confirms it.
  • Inferred Our reading of figures that match or sit close together. No document links them.
  • Unknown Nothing later in the records we have.
  • Not a payee A correction line; nothing to trace.
The reconciliation’s summary, as Blueacorn reproduced it
LinePer scheduleAccruedStatus of what followed
JF/MC$4,576,841.24$4,566,029.40Inferred
Verdigris$2,860,525.77$2,853,821.11Unknown
BA Fee$9,725,787.63$9,495,856.88Unknown
BA Holdback$15,005,951.01$14,990,189.37Inferred
Paynerd$21,746,478.66$21,696,210.82Inferred
“Erorr in loans to be” (label cut off in the excerpt)$(316,746.00)$(316,746.00)Not a payee
Subtotal (as printed)$53,598,838.33$53,285,361.58
BA Womply Fees$55,440,248.67$55,440,248.67Unknown
Total accrual (as printed)$109,039,087.00$108,725,610.25

The “Per schedule” lines as printed add to $109,039,086.98, $0.02 less than the printed total; the “Accrued” column adds exactly. Figures from the excerpt in Fin Cap, Inc. v. Capital Plus Financial LLC, Tarrant County No. 352-341122-23, application, para. 19. We do not have a court copy.

Each line, and what came later

  1. JF/MC
    $4,576,841.24 December 2022$4,935,371.04 the figure in the founders’ companies’ complaint (reported)
  2. Verdigris
    $2,860,525.77 December 2022
  3. BA Fee
    $9,725,787.63 December 2022
  4. BA Holdback
    $15,005,951.01 December 2022$15,005,881 the credit in the quarter of the award (documented)
  5. Paynerd
    $21,746,478.66 December 2022$19,796,022.81 the liability reserve (reported)
  6. “Erorr in loans to be” (label cut off in the excerpt)
    $(316,746.00) December 2022
  7. BA Womply Fees
    $55,440,248.67 December 2022
  • December 2022 list
  • Later figure, documented
  • Later figure, reported

Bars are drawn to one scale; the longest is the $55.4 million “BA Womply Fees” line. A later figure sits under the line our reading ties it to; the status says how firm that tie is.

Line by line

JF/MC

Inferred

December 2022 list $4,576,841.24 per schedule; $4,566,029.40 accrued

Later figure $4,935,371.04 the figure in the founders’ companies’ complaint, reported

What the list shows
A line headed “JF/MC.” The excerpt does not say who that is, and Blueacorn’s application did not count it among the fees owed to Blueacorn.
The later record
In July 2024 YXS Investments and two companies owned by Blueacorn co-founders sued Capital Plus for the founders’ 8 percent share of its SBA fees. Proteck, LLC’s sole member is Michael Cota and FEFO Group, LLC’s is James Flores. The complaint alleges that Capital Plus began withholding 10 percent of their payments on or about June 18, 2021, and that by August 31, 2022 Capital Plus itself calculated it owed them $4,935,371.04 (YXS complaint, paras. 6–7, 27 and 36). The case closed in February 2025; the free docket does not show how.
How the two connect
Our reading: “JF/MC” fits James Flores and Michael Cota, and the line is $358,529.80 below the complaint’s figure. No document says the line is their share.

Verdigris

Unknown

December 2022 list $2,860,525.77 per schedule; $2,853,821.11 accrued

What the list shows
A line headed “Verdigris.” The amended agreement between Capital Plus and Blueacorn’s Fin Cap, Inc., an exhibit to the same Texas application, says: “Additionally, Lender shall pay Verdigris Holdings, Inc. 6% of the remaining Total Fees” (Schedule A). The remaining fees are what was left after up to 40 percent was reserved for referral agents.
The later record
Nothing later in the records we have mentions Verdigris Holdings, Inc., and we have not identified the company.
How the two connect
None.

BA Fee

Unknown

December 2022 list $9,725,787.63 per schedule; $9,495,856.88 accrued

What the list shows
Blueacorn’s application glosses it as “‘BA Fee’ (i.e., Blueacorn fee)” and counts it among the fees Capital Plus owed Blueacorn (para. 19).
The later record
Blueacorn took its whole claim, $244,166,298.44, to arbitration in March 2023 (Texas application, paras. 24–25). The award is sealed. In April 2025 Blueacorn told the federal court only that “a portion of funds has been paid and resolved between CPF and Blueacorn” (application, para. 10).
How the two connect
No record we have says what happened to this line.

BA Holdback

Inferred

December 2022 list $15,005,951.01 per schedule; $14,990,189.37 accrued

Later figure $15,005,881 the credit in the quarter of the award, documented

What the list shows
Blueacorn counted it among the fees owed to Blueacorn (para. 19). Its lawyers had described the Capital Plus deal to Congress as “an initial 20% share of SBA fees received by Capital Plus for each loan (with 50% of this amount held back until the borrower applied for SBA forgiveness for the underlying loan)” (Subcommittee’s Blueacorn documents, letter of Jan. 12, 2022).
The later record
The arbitrator’s award is dated April 29, 2024. For the three months to April 30, 2024, the Crossroads group’s income statement shows “PPP processing fees” of $(15,005,881): a credit, where the line had been an expense (Q2 FY2024 statements). The statements carry no notes.
How the two connect
The credit is $70.01 less than this line. The match is our reading, not stated in any document.

Paynerd

Inferred

December 2022 list $21,746,478.66 per schedule; $21,696,210.82 accrued

Later figure $19,796,022.81 the liability reserve, reported

What the list shows
Blueacorn’s application calls PayNerd “Blueacorn’s principal referral agent” and counts this line among the fees owed to Blueacorn (paras. 18–19). It says Capital Plus paid part of Blueacorn’s share “at Blueacorn’s direction, to referral agents with whom Blueacorn had contracted” (para. 17).
The later record
In April 2025 Blueacorn told the federal court that Capital Plus “continues to hold $19,796,022.81 in a liability reserve” that the arbitrator determined “is now payable,” and that the arbitrator said it should be paid to PayNerd, LLC unless PayNerd agrees otherwise or a court, in a case to which PayNerd is a party, rules that Blueacorn is entitled to it (application, paras. 11–12). Blueacorn had sued PayNerd in Delaware in December 2021 (Court of Chancery opinion).
How the two connect
The reserve is $1,950,455.85 less than this line. No document says the reserve is this line; that is our reading.

“Erorr in loans to be” (label cut off in the excerpt)

Not a payee

December 2022 list $(316,746.00) per schedule; $(316,746.00) accrued

What the list shows
A negative correction that reduces the subtotal. The label is printed as shown and cut off in Blueacorn’s excerpt.
The later record
Not a payee; nothing to trace.
How the two connect
Not applicable.

BA Womply Fees

Unknown

December 2022 list $55,440,248.67 per schedule; $55,440,248.67 accrued

What the list shows
Blueacorn counted it among the fees owed to Blueacorn (para. 19). Womply had referred PPP borrowers to Capital Plus through a Blueacorn company, BA Fin Orion, LLC, and its amended complaint put the fees it was owed at $76,714,482.67 (Womply’s First Amended Complaint).
The later record
Womply’s suit against Capital Plus, its parent Crossroads, Eric Donnelly, BA Fin Orion and Blueacorn’s Barry Calhoun was settled and dismissed with prejudice on January 5, 2023 (Doc. 156; case page). The terms are not public. The court had dismissed the two Blueacorn defendants without prejudice for lack of personal jurisdiction on April 11, 2022 (order), then gave Womply leave to replead its claims against them on July 20, 2022 (order).
How the two connect
No record we have says what happened to this line.

After the list

  1. Capital Plus pays Blueacorn $4 million, according to Blueacorn, which said in March 2023 that nothing had been paid since (Texas application, paras. 18 and 20).Reported
  2. Capital Plus sends Blueacorn its reconciliation to October 31, 2022, whose summary page carries the seven lines above (para. 18).Reported
  3. Capital Plus pays about $61 million “in connection with a debt to a third-party,” according to Blueacorn’s application, which does not name the third party (para. 29).Reported
  4. Blueacorn files its arbitration demand (AAA No. 01-23-0001-1748) “related to CPF’s failure to pay the fees” (application, para. 8). Its claim is $244,166,298.44 (Texas application, para. 25).Reported
  5. Crossroads’ audited statements: “Prior to the arbitration, the Company had accrued $80 million in fees due to BlueAcorn. While the Company disputes that these amounts are owed, the Company has maintained this accrual pending the outcome of the arbitration” (FY2023 audited financials, note 19).Documented
  6. The arbitrator issues a “Confidential Final Award” (application, para. 9). It is sealed.Documented
  7. Quarter end: “PPP processing fees” of $(15,005,881) for the three months (Q2 FY2024 statements).Documented
  8. Capital Plus’s accrued liabilities are $69,978,515, down $24,736,729 from April 30 (Q3 FY2024 statements, consolidating balance sheet).Documented
  9. Blueacorn asks the federal court in Arizona to confirm the award: “A portion of funds has been paid and resolved,” and $19,796,022.81 is still held in a reserve the arbitrator said should go to PayNerd (application, paras. 10–12).Reported
  10. Judgment “in favor of Blueacorn and against Capital Plus Financial, LLC as described in the Final Award,” on an order Capital Plus agreed to (stipulated notice; order; amended judgment). No amount is stated.Documented
Capital Plus’s accrued liabilities, all kinds
Oct. 31, 2022$203,289,201FY2023 audited financials
Oct. 31, 2023$128,438,036FY2023 audited financials
Jan. 31, 2024$116,723,587Q1 FY2024 statements
Apr. 30, 2024$94,715,244Q2 FY2024 statements
July 31, 2024$69,978,515Q3 FY2024 statements

Capital Plus Financial’s column of the Crossroads consolidating balance sheet. The line includes every accrued liability, not only fees owed to Blueacorn. The group’s “PPP Accruals” were $202,491,793 at October 31, 2022 and $127,401,240 a year later (FY2023 audited financials, note 8). We have not read Crossroads’ statements after July 31, 2024.

What would settle it

  • The Final Award of April 29, 2024, which is sealed: its total, and how much of it has been paid.
  • Who holds the $19,796,022.81 now, and whether the Delaware court has ruled on it. We do not have the Delaware docket after 2024.
  • Crossroads’ financial statements after July 31, 2024.
  • A court copy of Blueacorn’s Texas application, the source of every line above.
  • Who Verdigris Holdings, Inc. is, and who “JF/MC” is.

The story behind the reserve: Blueacorn won against Capital Plus; the arbitrator said $19.8 million should go to PayNerd. The lawsuits around it: Blueacorn in court, 2021–2026. Download the lines: lines.csv.

Sources

Each linked document opens its record page on this site, which links the original where one is public. Documents listed without a link are cited from the filing named; we do not have a copy we can publish.

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