Capital One to Recover Millions on Bad Checks

     (CN) – A New Yorker known for throwing lavish fund-raisers for political candidates and writing $82 million in bad checks owes Capital One $7.4 million, a federal judge ruled.
     Before Hurricane Sandy devastated coastal communities along the Atlantic in October 2012, Pakistan-born Saquib Khan had built a successful business in Staten Island with Richmond Wholesale Co. Inc., a supply store for gas stations and bodegas.
     Khan had also been a power player in the New York political scene, as evidenced by the $1,000-a-plate dinner he hosted for Hillary Clinton’s Senate campaign in 2000 and other donations he made to then-Gov. George Pataki and Rep. Eliot Spitzer.
     Today, the 51-year-old is reportedly out on $400,000 bail while trying to arrange a plea deal on charges that he swindled banks in an $82 million check-kiting scheme.
     His lawyer told The New York Times in February that Khan was only trying to save his business in the wake of the massive power failures of Hurricane Sandy.
     After writing hundreds of worthless checks to himself over a two-week period, Khan tried to quickly wire the money to different accounts before the checks bounced. Bank officials nevertheless spotted the suspicious transactions.
     As of Dec. 19, one of Khan’s Capital One business checking accounts was overdrawn by more than $5 million, and the other was overdrawn by more than $2.4 million. Other Richmond Wholesale accounts were also overdrawn by more than $10,000 total.
     Capital One sued Richmond in the New York County Supreme Court, asserting breach of contract, fraud and unjust enrichment. Khan executed a confession of judgment in that action for nearly $7.7 million.
     In a federal action between Khan and Capital One in New Jersey, Khan moved to modify the preliminary injunction and temporary restraints, and Capital One moved for summary judgment.
     U.S. District Judge Faith Hochberg sided with the bank on May 2 and shot down Khan’s belated attempt to depose former Capital One employee Richard Kelly.
     “Any information Khan hopes to learn from deposing Kelly is at best speculative, i.e., he points to nothing specific about his dealings with Kelly that might indicate that summary judgment should not be awarded in plaintiff’s favor,” Hochberg wrote. “For example, Khan fails to offer any specific statement indicating that Kelly verbally communicated something to him that was contrary to the terms of the guaranty executed by him. Even if Khan could do so, the court is required to interpret the guaranty based solely on the language contained within the four corners of the guaranty, as it is plain and unambiguous.”
     Khan offered “not a shred of evidence” that raises any such issue of fact, according to the 10-page ruling.
     “Khan has not, and cannot assert any meaningful opposition to plaintiff’s summary judgment motion,” Hochberg wrote. “Khan failed to identify or produce any individual who would be putting in any affidavit or certification on his behalf by this court’s Feb. 19, 2013 deadline. Khan has been aware since as early as the Jan. 14, 2013 hearing that he would be barred from offering any affidavit or certification of any individual who was not made available to be deposed. Therefore, Khan cannot rely on anything other than his own self-serving statements to oppose the instant motion. In addition, Khan elected not to depose Capital One’s affiant, even though he had been timely identified and made available to be deposed. Given that plaintiff’s motion for summary judgment now stands essentially unopposed, and that plaintiff has adduced evidence indicating that Khan executed the guaranty and the indebtedness of Richmond as set forth in the confession of judgment, Capital One has established that there is no genuine dispute as to any material fact and that it is entitled to judgment as a matter of law. Accordingly, plaintiff’s motion for summary judgment in the amount of $7,446,153.65 is granted.”
     Khan, who now lives in New Jersey, is active in several Pakistani-American civic groups, the Daily News reported.

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