A court appointed receiver, now in charge of the books at Condor Capital Corp., said that his observations, examinations and experience and interviews to date, confirm that that a number of the allegations in the complaint made by the New York State Department of Financial Services are true. The receiver, Denis O’Conor of Alix Partners LLP, made the statement in a June 9 letter to the New York federal judge overseeing the case. O’Conor also said that Condor CEO Stephen Baron’s past and current conduct leads him to believe that a receiver’s continued control of Condor is necessary to protect customers and stakeholders of the company. Subprime auto lender Condor Capital has been charged by New York State with bilking customers out of as much as $11 million.
His letter was written in response to a motion from Condor’s attorneys asking the court to convert the receiver into a monitor, thereby removing the position’s executive authority. Condor’s attorneys also asked that the company be permitted to immediately resume its loan originations, as well as requesting the unfreezing of its assets. They said if the company is not allowed to start up originations soon, it will be forced to begin the process of liquidating itself.
