Silver State Students Sue Lender
Students of the now-defunct training school Silver State Helicopters are suing KeyBank, one of the banks that financed their tuition, charging that it engaged in fraudulent loan practices and was an active participant in a Ponzi scheme concocted by Silver State executives. Silver State filed Chapter 7 liquidation bankruptcy on February 3. The class action lawsuit, filed in California Superior Court, seeks to ban Cleveland-based KeyBank USA from enforcing loans made to Silver State students and from contacting credit reporting agencies regarding the loans. The suit charges that KeyBank omitted government-required borrower rights language
from its loan agreements and that this omission was intentional and constituted a “deceptive” act.