Lender TD Bank is alleging that they loaned the Mary J. Blige and Steve Stoute’sFoundation for the Advancement of Women $250,000 back in June of last year with the agreement that the monies would be repaid six months later. The bank is now claiming that the foundation only made one payment of $368.33 into the loan’s principal and are suing the organization, reports TMZ.
The lending institution claims that it made a couple of attempts to contact the charity in February but to no avail.
The non-profit has apparently been involved in some questionable dealings before this latest situation. Apparently, the organization, whose mission is to educate and empower women through scholarships, grants, and career development opportunities, reportedly not only failed to file a federal tax return in 2010 but also stiffed some 30 musicians who performed at a huge charity event to benefit it in May of last year.
The organization, which supposedly has no physical office or phone number, held a star-studded charity gala that was hosted by Queen Latifah and at least 30 musicians accompanied the featured performers. The musicians claimed they were given rubber checks, so they filed a lawsuit last November at the State Supreme Court in Manhattan against the foundation.
The monies they are owed total some $167,252, and although the musicians allegedly did not get paid for their services, the monies should have been there since the organization borrowed $250,000 from T.D. Bank one month after the gala.
Interestingly enough, when the process server went to deliver the lawsuit’s court papers to the foundation’s address on record, they could not be found and no information could be provided as to the charity’s whereabouts.
The charity was founded in 2007 by Blige and Stout, who is a former record executive, and a number of A-list celebs have sat on its board, such as Jada Pinket Smith, Jay-Z, and Queen Latifah.
A representative for Blige told TMZ:
“The Mary J. Blige and Steve Stoute Foundation For The Advancement Of Women Now, Inc. (FFAWN) is presently transitioning its management and headquarters.”
The rep adds:
We remain committed to our mandate of helping women gain the confidence and skills necessary to reach their full individual potential.”