Fraud Alleged in $36m Loan

Summary


James Cohen, the Alpine man whose family built and sold the Hudson News chain of newsstands, has accused Hackensack-based Kennedy Funding Inc. of fraud in connection with a $36 million loan to a Kennedy-created company.

Cohen and four companies he co-owns, which together made the loan, allege in court papers filed in U.S. District Court in Newark that they were never told by Kennedy Funding or its principals that the intended recipient of the loan, Brookline Financing LLC, was in financial distress.

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Extract


Fraud Alleged in $36m Loan

"If that information had been disclosed," Cohen and the companies say in court documents, they "would not have agreed" to the loan.

Cohen...

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