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Lakeland Bank Sues Assemblyman Schroeder

The bank alleges Schroeder has failed to pay back a $500,000 loan.

Lakeland Bank is suing State Assemblyman Robert Schroeder after he allegedly failed to make payments on more than $500,000 he owes the bank, according to a complaint filed last week.

The bank loaned Schroeder $500,000 in May 2011, with a maturity date of July 2012, according to the complaint. The bank is now demanding the full sum of the outstanding loan with interest, about $506,000, because Schroeder was allegedly late making payments.

Schroeder and a company, 725 Broadway LLC, were named as defendants in the suit.

"Schroeder failed to repay the principal and interest due under the loan documents," according to the complaint.

Attorneys for Lakeland Bank and Schroeder did not respond to requests for comment Monday.

State officials charged Schroeder with to a pair of investors in August. He has been sued numerous times over the past few months by banks and individuals who say he owes them for unpaid loans, though the rate of new lawsuits has slowed since early September. 

Most recently, Atlantic Stewardship bank filed a suit last month alleging Schroeder failed to disclose $5.6 million worth of loans from other lenders when he applied to borrow money there. The bank gave him a $2 million loan which was later increased to $2.5 million, according to the bank's complaint.

The Washington Township-based Oritani Bank also , it said the assemblyman had defaulted on.

Court documents obtained by Patch show that Oritani Bank and and Schroeder agreed to appoint a rent receiver to run the properties during the lawsuit.

Have a question or news tip? Contact editor Jim Leggate at Jim.Leggate@patch.com, or find us on Facebook and Twitter. For news straight to your inbox, sign up for our daily newsletter.

B@B October 09, 2012 at 12:07 PM
Another one. And another, and another. At what point does defaulting on all these loans constitute fraud? And why are we tolerating having him as our Assemblyman?
Dana Egbert October 09, 2012 at 12:28 PM
Gotta love the double standards politicians live by. Imagine an ordinary dude doing this.
B@B October 09, 2012 at 01:51 PM
Imagine the outcry from Chris Christie -- and from Bob Schroeder, for that matter -- if a Democrat did this.
Jeffrey Tammen October 14, 2012 at 03:09 PM
He should be suspended from duty until law suit is over

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