In a response to the foreclosure lawsuit filed against it, EF Hutton admitted that it has defaulted under the terms of its contract with a real estate company and that the company has rightfully accelerated the debt. The answer prompted PS Funding to ask the court for judgment.
“Defendant states in its answer that it is not disputing the debt and that it is thus liable to plaintiff …” the motion says. “Defendant raises no defense to the plaintiff’s complaint and only gives more weight to the plaintiff’s allegations of default under the payments of the loan. Defendant continues to have an obligation under the promissory note to plaintiff”
In another filing by PS Funding, it asked the court for an inspection of the property.
“Plaintiff reached out to defendant Hutn Inc. through counsel in late July regarding a mutually convenient time for an appraisal/inspection with a … review to be conducted of the subject premises,” the motion says. “Unfortunately, Defendant Hutn, Inc. has been unable or unwilling to arrange such an appraisal/inspection which would assist plaintiff in the decision as to how best sell said premises.”
The Springfield News-Sun reached out to both attorneys for EF Hutton and PS Funding but didn’t hear back from them.
Hutn, Inc. purchased and moved into the building in late 2016. The move came with the promise of more than 400 new jobs and many city and business leaders believed the company would help rejuvenate downtown. However, the company failed to get its footing in a number of industries including trading stocks, social media and cryptocurrency.
The financial company also owes SpringForward around $7.5 million on an unsecured note. The two sides said they have been negotiating to settle the debt.
SpringForward received the building for free by way of a donation from Jim Lagos and his wife, Nike, and sold the building to EF Hutton with an agreement that EF Hutton would pay them back over a period of years. EF Hutton suspended operations in April.
EF 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.
April 2019 - PS Funding files to foreclose 0n EF Hutton Tower.