Complaint Review: Round Table Financial

Round Table Financial has engaged in MAIL FRAUD as they had received through the mail and cashed a check without my knowledge or permission in my company's name on April 23, 2024 which they knew was wrong.  ADP has been trying to retrieve the money from my company although I have provided copies of the checks that show Round Table Financial cashed the check.  This has been going on for over 3 months now, and now ADP's collections company is threatening to sue me although I had nothing to do with it. Round Table Financial's felony mail fraud and wire fraud and intentional negligence has put my company at risk. Round Table has a fiduciary responsibility as a finance company not to commit mail fraud and identity theft to me as a client. Round Table Financial also had a responsibility to at least inform me of cashing a check improperly in my company’s name for a felony amount of $26,000.

Round Table Financial refused to pay ADP for their actions of unlawful conversion which they concealed from me, and I didn’t find out until ADP continued to call me and threaten legal action against my company. When I confronted them, Luis Toral from Round Table said, “Can you provide proof?” which I did as ADP sent copies of the checks they had cashed. An investigation should take place to see if me and my company are being discriminated against or if this a normal business practice of Round Table Financial. It feels like my company is being held hostage by my finance company that won’t fund my invoices yet I have been completely on the hook to pay employees, yet they also refuse to have my clients send checks directly to me. I have text messages from Joe Purcell regarding the checks from ADP and when they finally would make a payment to them after repeated messages to him, Luis Toral and Augustin Toral from Round Table. They have breached the contract by not funding invoices for weeks or over a month and not paying my company until they have received checks from my clients most likely also trying to charge a factoring fee. I informed my clients of the situation and sent invoices directly to them; however, Round Table interjected; they sent the contract to my clients thereby holding my company hostage. Round Table has held more than 10 invoices totaling over $30,000.

Round Table's website states, "We Deliver AR Funding Solutions Before It's Too Late" and "Say goodbye to waiting up to 30 to 90 days for a client to send your hard-earned money., and "You can expect an upfront cash advance for your unpaid invoices within 24 to 48 hours after approval. "We understand that businesses need fast access to funding" This not only did not happen, Round Table misued their fudiciary responsibility.

The agreement with the company is they would factor invoices within 24 hours; however, they continue to say that in their contract they can basically do whatever they want. I have may emails and text messages asking them to take care of this issue with ADP, there is still a $6500 bill from them for legal fees, and the only thing Joe Purcell, owner and CEO of Round Table has said in text messages is that they don't owe it and my company doesn't owe it either because of no collection attempts. In their portal it shows that I have over $5,000 in reserve which according to the contract, I can request which would equate to $3800 or so.  I requested, but they refused stating that there are still payments out there which equate to only $18,000 now from a government client. One of my government clients had $9000 outstanding for only 30 days that they didn’t send payment to me until they received the check from the State of California.

Due to their actions, I informed Round Table and my clients that I would be sending invoices directly because the invoice company had not been properly factoring invoices sometimes waiting weeks before providing payments to me and my company. The invoice company reached out to my clients and insisted that they still pay the invoice company and even sent our contract to my clients while still continuing to refuse to factor invoices and pay my company. This again has put my company in a bad situation with being able to pay bills and payroll on time. I am now threatened to be sued by an employee that I have been unable to pay because of this invoice factoring company. Although I have communicated this to the CEO of the invoice factoring company, no payments have been made in the last 3 months until they have received payments from my clients while putting my company at risk with being sued by ADP and an employee.

Round Table Financial refused to pay ADP for their actions of unlawful conversion which they concealed from me, and I didn’t find out until ADP continued to call me and threaten legal action against my company. When I confronted them, Luis Toral from Round Table said, “Can you provide proof?” which I did as ADP sent copies of the checks they had cashed. An investigation should take place to see if me and my company are being discriminated against or if this a normal business practice of Round Table Financial. It feels like my company is being held hostage by my finance company that won’t fund my invoices yet I have been completely on the hook to pay employees, yet they also refuse to have my clients send checks directly to me. I have text messages from Joe Purcell regarding the checks from ADP and when they finally would make a payment to them after repeated messages to him, Luis Toral and Augustin Toral from Round Table. They have breached the contract by not funding invoices for weeks or over a month and not paying my company until they have received checks from my clients most likely also trying to charge a factoring fee. I informed my clients of the situation and sent invoices directly to them; however, Round Table interjected; they sent the contract to my clients thereby holding my company hostage. Round Table has held more than 10 invoices totaling over $30,000. These are unfair business practices which are also in violation of the State of California and Federal laws. These are also discriminatory practices as I am an African American business owner and a Veteran.

Round Table Financial was great to me during the beginning of our relationship working together. They provided me with 100% financing at times to cover payroll as well as provide up-front loans to help cover other expenses such as office rent and office furniture. The loans have been paid 100%.

California Laws

1. California Commercial Code (UCC) - Division 9: Secured Transactions

• Breach of Contract: If the factoring company has a contractual obligation to advance funds against invoices and fails to do so, they may be in breach of contract.
• Conversion: Improperly cashing checks that belong to your company can be considered conversion, which is the unauthorized assumption and exercise of the right of ownership over goods or personal property belonging to another.
• Fraud: If the factoring company intentionally misrepresented its actions or intentions regarding the handling of your invoices or checks, it could be liable for fraud.
• California Civil Code - Section 3336

• Provides for the measure of damages for conversion, which includes the value of the property at the time of conversion plus interest and compensation for any injury caused by the conversion.
• California Business and Professions Code - Section 17200 (Unfair Competition Law)

• Unfair Business Practices: The factoring company's actions could be considered unfair business practices, which are prohibited under California's Unfair Competition Law (UCL).

Federal Laws

1. Uniform Commercial Code (UCC) - Article 9: Secured Transactions

• Similar to California’s UCC, it governs secured transactions, including the sale of accounts receivable.
• Federal Trade Commission Act (FTCA) - Section 5

• Deceptive Practices: The FTCA prohibits unfair or deceptive acts or practices in commerce. The factoring company’s refusal to make payments and improper cashing of checks may fall under deceptive practices.
• Fair Debt Collection Practices Act (FDCPA)

• If the factoring company’s actions involve debt collection, their practices may be governed by the FDCPA, which prohibits abusive, deceptive, and unfair debt collection practices.

4. Mail and Wire Fraud (18 U.S.C. §§ 1341, 1343)

• Mail Fraud:
  • Using the mail system to perpetrate a fraudulent scheme, such as cashing checks not belonging to them, could constitute mail fraud.

5. Bank Fraud (18 U.S.C. § 1344)

• Fraudulent Activities Involving Financial Institutions:
  • Engaging in schemes to defraud a financial institution, including the improper cashing of checks, can constitute bank fraud.