Complaint against US Small Business Administration — No. 5:23-cv-01009 (Dkt. 1)

Summary

A Complaint for Declaratory and Injunctive Relief by Hand Up Ministries, Inc. against the U.S. Small Business Administration, CIV-23-1009-SLP, in the U.S. District Court for the Western District of Oklahoma, filed 11/08/23 as Document 1. The plaintiff states that on or about January 5, 2022 the SBA sent a repayment reminder for an alleged EIDL loan of $500,000.00, and that the plaintiff never applied for or received this loan. It states the plaintiff followed the SBA's identity theft steps and submitted a Federal Trade Commission Identity Theft Report and a declaration on June 23, 2023, without further response. The complaint asks the court to enjoin the SBA from collecting repayment of the alleged loan, which the SBA said would begin after December 25, 2023, and to declare the loan void. It is signed by counsel Chad C. Taylor.

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“Complaint against US Small Business Administration — No. 5:23-cv-01009 (Dkt. 1).” Original at ecf.okwd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/complaint-against-us-small-business-administration-no-5-23-cv-01009-dk-644f25b8c5/, SHA-256 a9737e3864d425ea6f960903c8aeed6989599df1ec9afd166b96fe3000fa97e3.

Full text

Case 5:23-cv-01009-SLP Document 1 Filed 11/08/23 Page 1 of 6

IN THE UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF OKLAHOMA

HAND UP MINISTRIES, INC, an )
Oklahoma company; )
)
)
Plaintiff, )
) CIV-23-1009-SLP
v. ) Case No. ---------
)
U.S. SMALL BUSINESS )
ADMINISTRATION, )
409 3 rd Street SW )
Washington, D.C. 20416 )
Defendant. )

COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

Plaintiff, Hand Up Ministries, Inc., alleges against the Defendant, as follows:

Parties and Jurisdiction

1. Plaintiff, Hand Up Ministries, Inc. is an Oklahoma company doing business in

Oklahoma City, Oklahoma.

2. Defendant, Small Business Administration ("SBA") is an independent agency of

the Federal Government whose mission is to help American start, build, and grow businesses.

3. The Defendant was the agency responsible for administering Covid-19 loans

under the COVID-19 Economic Injury Disaster Loan (EIDL) and EIDL Advance programs.

4. This District Court has jurisdiction arising under The CARES Act, 15 U.S.C.

9009 and 28 U.S.C. § 1331 as this matter presents a federal question under the Act; and The

Declaratory Judgment Act under 28 U.S.C. §§ 2201 and 2202

5. Venue for this action properly lies in the Western District of Oklahoma pursuant

to 28 U.S.C. § 1391 because the Plaintiff is considered to reside in this judicial district and a
Case 5:23-cv-01009-SLP Document 1 Filed 11/08/23 Page 2 of 6

substantial part of the event or omissions giving rise to the claim occurred in this judicial

district.

Facts Common to All Claims

6. On or about January 5, 2022 the SBA presented a Reminder that Plaintiff was to

being making loan repayments under an alleged EIDL loan, bearing loan number ******9102,

for $500,000.00 See Exhibit 1, "Reminder."

7. Plaintiff never applied for this EIDL loan, nor did Plaintiff receive this loan.

8. Plaintiff contacted the SBA and advised them that Plaintiff did not apply for this

loan, nor receive this loan. In response, the SBA sent the Plaintiff an identity theft letter with

certain steps to take to further assist in reporting identify theft for EIDL loans. See Exhibit 2

9. Plaintiff complied with the SBA's identity theft letter and provided the SBA with

an Identity Theft Report with the Federal Trade Commission, a copy of the driver's license for

the officer of Plaintiff, and a declaration of identity theft on June 23, 2023. See Exhibit 3.

10. The SBA acknowledged receipt of the foregoing referenced email on June 23,

2023. See Exhibit 4.

11. Plaintiff has again on July 31, 2023 requested that the SBA provide them with

sufficient information to determine who made this loan, where the funds were deposited, and any

other details that may help them learn who was involved and how this loan was created in their

name. See Exhibit 5.

12. No other response has been forthcoming from the SBA to Plaintiff concerning this

alleged loan.

2
Case 5:23-cv-01009-SLP Document 1 Filed 11/08/23 Page 3 of 6

First Cause of Action-Injunction - Rule 65

13. Plaintiff incorporates the allegations set forth above.

14. Defendant has asserted that Plaintiff must begin repaying the alleged loan after

December 25, 2023.

15. Plaintiff seeks to enjoin the Defendant from requesting or forcing repaying of this

alleged loan by Plaintiff.

16. Plaintiff maintains a substantial likelihood to prevail on the merits. The Defendant

has failed to provide any corroborating information or documentation to support their assertion

that Plaintiff applied for this loan or even received the funds.

17. Plaintiff stands to have irreparable financial harm inflicted on them by being

forced to repay this alleged loan and possibly being denied credit, or an adverse credit rating for

a loan they did not apply for, nor receive.

18. The threatened irreparable injury to Plaintiff outweighs any injury to the

Defendant. Further Defendant should be required to expeditiously provide Plaintiff with the

details and information of this alleged loan so that Plaintiff may perform and complete their own

internal investigation and review to determine if someone affiliated with their organization took

malicious and unauthorized steps to acquire this alleged loan.

19. The granting of this injunction is not adverse to the public interest. The public

interest is served where an individual's rights are preserved and applied lawfully through the

tenets of law expressed herein.

Second Cause of Action -Declaratory Decree

20. Plaintiff incorporates the foregoing allegations herein.

3
Case 5:23-cv-01009-SLP Document 1 Filed 11/08/23 Page 4 of 6

21. Plaintiff is entitled to a Declaratory Judgment that determines their rights as stated

above with respect to the Defendant.

22. Plaintiff has a protected liberty interest in their good name, reputations, honor, and

integrity, of which they cannot be deprived without due process.

23. Where Defendant asserts the Plaintiff is liable for a loan obligation, then they must

prove and provide sufficient evidence that it was Plaintiff that made the loan obligation and

received the funds.

24. That if the Defendant cannot show that it was Plaintiff that made and accepted this

alleged loan, then it should be held and declared void and Plaintiff should be free from any and

all obligations associated with this alleged loan.

25. That if Defendant cannot show it was Plaintiff that made and accepted this alleged

loan, then it should not be able to take any further action against Plaintiff to collect repaying of

this alleged loan, or initiate any negative credit reporting and adverse actions on Plaintiff as a

result of this fraudulent loan.

Relief Requested

WHEREFORE, premises considered, Plaintiff, Hand Up Ministries, Inc., prays that this

matter is tried to the Court and the Court renders judgment in favor of Plaintiff and against

Defendant as follows:

26. On their First Cause of Action against the Defendant the Plaintiff prays that this

Court will enjoin the Defendant from attempting to collect repayment of a fraudulent loan that

was not applied for by Plaintiff, and who did not receive any funds from said loan, and;

27. On their Second Cause of Action against the Defendant the Plaintiff prays that

this Court will find that Defendant has unlawfully denied Plaintiff their right to receive

4
Case 5:23-cv-01009-SLP Document 1 Filed 11/08/23 Page 5 of 6

complete information about the application and receipt of this alleged loan by someone other

than the Plaintiff, their right to declare this loan invalid and fraudulent, and for the Defendant to

take no adverse action unto Plaintiff and award for the Plaintiff their attorney's fees, expenses,

costs, and all other relief deemed just and equitable in the premises.

Respectfully submitted,

s/ Chad C. Taylor
Chad C. Taylor
OBA# 18308
Attorneys for Plaintiff
RIGGS, ABNEY, NEAL, TURPEN,
ORBISON & LEWIS, P.C.
528 NW 12th Street
Oklahoma City, Oklahoma 73103
ctaylor@riggsabney.com

5
Case 5:23-cv-01009-SLP Document 1 Filed 11/08/23 Page 6 of 6

VERIFICATION

STATE OF OKLAHOMA )
) ss.
COUNTY OF OKLAHOMA )

I, David Nichols, have reviewed the foregoing Complaint and hereby attest that it

is true and correct to the best of my personal knowledge and belief.

,id.
Subscribed and sworn to me before this c2 day of November, 2023

(Seal)

Notary Public
My Commission expires:

i /"\&?: PATRICK FAIRBAIRN !
: ( SEAL ! Notary Public :
I
,I -...,() . State of Oklahoma
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8t.V...... -•• :
'-----------------------------------
: Co·m·lssion #21003070 Exp: 03/05/25 :

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