An Elkhart payroll company is facing additional claims from clients who say they are owed millions of dollars, while the wife of the company founder has also asked a judge to freeze his assets.
This story by Jordan Fouts originally appeared in The Elkhart Truth.
Najeeb Khan is the owner of Interlogic Outsourcing Inc. The company is seeking bankruptcy protection amid lawsuits from banks and clients who say they risk losing tens of millions of dollars.
KeyBank of Cleveland, Ohio, filed the first claim in federal district court in July, saying it could lose close to $100 million after Interlogic overdrafted its account and didn’t repay the money. A South Bend firm, Jones Law Office, filed a lawsuit in Elkhart County court this month on behalf of seven clients of IOI.
That lawsuit claims IOI withdrew funds from the clients’ bank accounts to pay wages and make payroll-related state and federal tax payments but failed to make any of those payments. It says the company made false statements to gain access to clients’ funds, that it knew those payments wouldn’t be made and that it continued to lie in emails later sent to clients.
A judge granted a temporary restraining order in that lawsuit following a hearing Friday, limiting Khan’s ability to dispose of his assets.
Judge Stephen Bowers also granted KeyBank’s request to become involved.
Fifteen more plaintiffs were added to that suit in an amended complaint filed Monday. They include restaurants, RV parts makers, a rental company, a car stereo store and other companies.
Another five defendants are also named in the amended complaint. It alleges IOI is guilty of negligence, breach of contract and fraud, among other counts.