A Maryland judge has ordered Redskins running back Adrian Peterson to pay about $2.4 million after he defaulted on a loan from a Montgomery County lending service, Holden Wilen of the Baltimore Business Journal reports.
Bethesda-based Democracy Capital Corp. sued Peterson and his business, Adrian Peterson All Day Inc., in Howard County Circuit Court on June 6 claiming the former NFL Most Valuable Player failed to pay the balance of a $4 million loan his business took out in April 2016. The loan, which carried a 15 percent interest rate, was taken out prior to the start of Peterson’s final season with the Minnesota Vikings.
Peterson and his business failed to make the first $200,000 payment on the loan due in July 2017 and the interest rate for the loan rose to 23 percent, according to court documents. They also did not pay back the loan in full when it reached maturity on Feb. 15, 2018, the documents show.
Democracy Capital received $1.65 million in July 2018 from the sale of various properties in Rhode Island that were promised as guarantees for the loan, according to court records. The lender received one additional payment of $50,000 on New Year’s Eve.
Including attorneys’ fees, interest and other costs, Peterson owes $2.4 million, according to a June 12 order signed by Judge Richard S. Bernhardt.
Democracy Capital was founded in 2016 by former American Bank executives James Plack and J.R. Schuble. The lending service aims to loan to people turned down by traditional banks because of their need for quick funding, the type of loan desired or the unique nature of their collateral, the Washington Business Journal, a sister publication, reported at the time.
Stephen A. Metz, an attorney at Offit Kurman representing Democracy Capital, declined to comment.