Tribe-Linked Loan Borrowers Seek Class Cert. in Interest Rate Lawsuit

A group of consumers recently requested Class certification in their lawsuit alleging that Big Picture Loans issues loans with unreasonable interest rates.

The loan class action alleges that tribal company Big Picture Loans LLC issues loans with interest rates that are far above the average range.

The Big Picture Loans class action also brings claims against: Ascension Technologies, created by the Lac Vieux Desert Bank of Lake Superior Chippewa Indians; Bellicose Capital, a company formerly purchased by the tribe which has since been dissolved; and Matt Martorello, the founder of Bellicose Capital.

Plaintiffs are only seeking certification in their claims against Martorello and aim to represent eight Classes of consumers who took out loans under Big Picture Loans or Red Rock Tribal Lending LLC, Big Picture Loans’ former name.

The first two RICO Classes include Virginia customers who entered into a loan agreement with either Big Picture Loans or Red Rock Tribal Lending where a payment was made on or after June 22, 2013.

The plaintiffs seek to represent two other RICO Classes of consumers with remaining balances on their loans with either Big Picture Loans or Red Rock Tribal Lending.

Two usury proposed Classes include all Virginia customers who paid any principal, interest, or fees on their loan with either Big Picture Loans or Red Rock Tribal Lending on or after June 22, 2015.

The final two unjust enrichment Classes include Virginia consumers who paid any amount on their loan with Big Picture Loans or Red Rock Tribal Lending on or after June 22, 2014 but before the date of Class certification.

In October, Martorello argued that the court should deny the plaintiff request for Class certification, claiming that the allegations would be “unmanageable” as a class action and that the proposed Class Members had signed waivers regarding class action lawsuits.

He further argued that the plaintiffs’ “path to prove their claims against [him] is particularly complicated and indirect,” since he is “not the lender, de facto or de jure, and never has been.” He instead points to the tribal companies as the ones who filled the role of lender.

However, the plaintiffs argue that Martorello is still liable under the Racketeer Influenced and Corrupt Organizations Act “regardless of change in his role or official title” which occurred when he sold Bellicose to the tribe in 2016.

“Thus, even if Martorello’s role diminished or changed, class members will not need to present evidence that varies from class member to class member because Martorello never withdrew from the conspiracy or relinquished his contractual right to receive the vast majority of the proceeds. These are the facts that matter to those claims,” the plaintiffs argue.

The plaintiffs are represented by Andrew J. Guzzo, Casey S. Nash and Kristi C. Kelly of Kelly & Crandall PLC, and Leonard A. Bennett, Craig C. Marchiando and Elizabeth W. Hanes of Consumer Litigation Associates PC.

The Big Picture Loans Interest Rates Class Action Lawsuit is Williams, et al. v. Big Picture Loans LLC, et al., Case No. 3:17­-cv­00461, in the U.S. District Court for the Eastern District of Virginia.