The U.S. Army has suspended all business with two companies owned by State Assemblyman Robert Schroeder, according to a report on NJ.com, and a bank which gave Schroeder mortgages for two Hillsdale properties used by the companies filed complaints to evict them Tuesday.
The Army alleged the companies, All Points International and Hercules Global Logistics, failed to pay subcontractors and deliver tents for work in Afghanistan, according to the report.
API previously protested the loss of two government bids, according to records from the Government Accountability Office. In the first, officials at the General Services Administration picked a more expensive bid because they were not happy with the features offered by API's products. In another case, GSA officials picked another bid over API's because they were unhappy with the company's past performance.
In further trouble for the two companies, a rent receiver filed a pair of complaints Tuesday to evict them from two Hillsdale properties the Oritani Bank had given Schroeder mortgages for.
The bank filed seven suits in August for properties it had loaned money to Schroeder and which he allegedly defaulted on. The rent receiver was later appointed, but API and Hercules have failed to pay rent for the past three months on the two properties they occupy, accruing more than $69,000 in rent and late fees, according to the complaints.
Calls to API were not returned Tuesday.
Schroeder was also sued by Lakeland Bank last week for allegedly failing to pay more than $500,000 for a loan and interest. He is currently facing several different lawsuits for loans he has allegedly failed to pay back and was also to a pair of investors.