The Reserves Network, based in Columbus, says in the lawsuit that EF Hutton didn’t pay for services rendered between June and December last year.
“Defendant owes plaintiff $22,392, according to the account,” the lawsuit says. “Defendant owes plaintiff $5,150 as and for attorney fees and or collection costs in accordance with the terms of the application, promissory note or contract.”
Emails sent to EF Hutton lawyers have not been returned.
EF Hutton moved into downtown Springfield in 2016 and promised to bring more than 400 new jobs into the area. However, the promise was never fulfilled as the company failed to get its footing in a number of industries including trading stocks, social media and cryptocurrency.
Currently, the building at 1 Main Street in the heart of downtown Springfield is overwhelmingly empty. The building is the former Credit Life headquarters.
An exhibit attached to the most recent lawsuit shows the company billed EF Hutton 23 times between June 17 and Dec. 16, 2018. It shows the bills usually ranged from just over $100 to $1,000, however between Aug. 5 and Aug. 19, The Reserve Network billed EF Hutton three times for more than $10,000.
It is unclear why those charges were higher than the normal rates. The attachment says that EF Hutton didn’t pay anything on the 23 bills.
The attachment also says EF Hutton owes $19,053 for the invoice amount and another $3,300 for late fees.
The lawsuit filed by The Reserves Network on Sept. 9 is one of two filed against the company in Clark County Common Pleas Court. Previously, the court ordered EF Hutton to pay California based Creative Circle $28,000 for unpaid services.
In that suit, lawyers allege “the Plaintiff tendered a statement of the balance due to the defendants and the defendant did not object to the statement,” the lawsuit said, which asked Hutn Inc., formally known as EF Hutton America, to pay back the agreed amount with interest and other relief deemed just and equitable by the court.
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The lawsuits aren’t the only legal issues EF Hutton is facing. EF Hutton Tower is in foreclosure.
The company said in court records it admits that it hasn’t paid its mortgage to PS Funding.
“Defendant Hutn, Inc., formerly known as EF Hutton America, Inc., has defaulted under the terms of the note as well as the security agreement,” the lawsuit states. “There is due to the plaintiff, $4,656,000, plus interest at the rate of 18 percent per year from November 1, 2018….”
The lawsuit filing is still open. The most recent action in the case shows court officials trying to serve those in the case.
F Hutton/Hutn Inc. time in Springfield
Sept. 2016 — EF Hutton America moves to Springfield promising more than 400 jobs over five years.
Nov. 2016 — EF Hutton America launches stock trading website.
Feb. 2017 — EF Hutton America announces expansion into mobile phone industry.
Oct. 2017 — EF Hutton America changes name to HUTN, Inc.
Nov. 2017 — HUTN, Inc. launches Meggalife websites.
Feb. 2018 - HUTN Inc. obtains a $4.65 million mortgage on EF Hutton Tower.
Sept. 2018 - HUTN, Inc. announces that it plans on raising $60 million by issuing cryptocurrencies.
Oct. 2018 — The Springfield News-Sun reports HUTN Inc. is under investigation by the Security and Exchange Commission.
March 2019 - The Springfield News-Sun reports all of the company’s websites are down and that the financial firm is behind on its taxes and water bill.
April 2019 - The company announces it has ceased normal operations and CEO Christopher Daniels has resigned.
$4.65 million: mortgage that PS Funding has on Hutn, Inc. building at One Main Street.
$7.5 million: unsecured note Spring Forward holds from Hunt Inc.
$27,000: amount alleged owed to The Reserves Network
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