ORLANDO, Fla. — An Orlando organization accused of overcharging the state for a loan program will have to pay back $1.26 million.
The judgment against the Black Business Investment Fund of Central Florida, which includes interest, was listed in an amended order issued in Leon County court last week.
The state’s Department of Economic Opportunity sued BBIF in 2013, claiming the organization overcharged service fees on an $8.5 million loan program it administered to help businesses during the recession. BBIF argued the state made the mistake, but the court sided with the DEO in 2014 and an appeal was mostly denied a year later.
The appeals court upheld the DEO’s victory, but ordered a lower court to revise the amount of interest.
As the case worked its way through the judicial system, 9 Investigates learned BBIF struck a deal with the city of Orlando to repay about $900,000 after the Carver Theatre project in Parramore was never completed. When Channel 9 asked where the money went, the city provided invoices that pre-dated the funding deal.
9 Investigates also found out the city later purchased the land in 2014 at more than double the sale price from nine years earlier.
On Tuesday, both the city and Orange County confirmed they each continue to provide the organization funding. BBIF made its first repayment of $43,900 to the city last September for the Carver Theatre deal, a city spokeswoman said.
BBIF offers a variety of loans, including those for the minority community.
Channel 9 called, emailed and stopped by the organization’s office in hopes of finding out how the latest legal decision might impact the group’s future. We’re still waiting on an answer. The DEO has not yet returned a request for comment.
Former judge and WFTV legal analyst Belvin Perry said BBIF has likely exhausted its appeals in the loan lawsuit and will probably have to pay the state.
Cox Media Group
