For one set of marine loans worth $89.2 million, investors never received the principal payments. YieldStreet gave “six months of excuses and extensions [for] reasons ranging from ‘bad weather’ to ‘new banking regulations in India’ before informing investors that they suspected fraud,” a group of YieldStreet investors recently wrote in a letter to company executives.
YieldStreet has filed a federal lawsuit against the asset manager that acted as the loan servicer on the deals. A YieldStreet spokesperson told Bloomberg Businessweek, “Defaults happen and when they do we are laser focused on recovery.”