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  1. 93. The First Fast Advance Agreement further provided that Fast Advance would pay off Network Salon’s balances with Knight, Capital Stack, and Yellowstone and deposit approximately $27,730 to the Operating Account.
  2. 94. On information and belief, on March 6, 2015, Fast Advance deposited $25,854.82 to the Operating Account. A copy of the March 2015 Operating Account Statement (the “March 2015 Statement”) is attached as Exhibit L.
  3. 95. On March 10, 2015, Fast Advance began debiting the Operating Account $1,590 every business day. See Ex. L, March 2015 Statement.
  4. 96. Although Fast Advance was aware that the Network’s Salon’s MCA agreements with World Global and New Era remained in effect and World Global and New Era continued to make daily debits to the Operating Account, see Ex. L, March 2015 Statement, section 2.11 of each Fast Advance Agreement, including the First Fast Advance Agreement, provides a representation and warranty that Network Salon had “good, complete and marketable title to all Receipts, free and clear of any liabilities, liens, claims . . . rights, security interests, pledges and encumbrances of any kind or nature whatsoever.”
  5. 97. Section 3.1 of each Fast Advance Agreement provides that violation of any term or representation of the agreement or that any “incorrect, false or misleading” representation or warranty made by Network Salon are events of default.
  6. 98. Despite the provisions of sections 2.11 and 3.1, from March 5, 2015 through August 14, 2015, Network Salon and Bathhouse entered into multiple MCA agreements with other MCA providers, including CBSG.
  7. 99. From its access to Network Salon’s bank accounts, Fast Advance knew or should have known that Network Salon was engaged in multiple MCA transactions with multiple MCA
  8.  
  9. Providers other than Fast Advance. See Exs. K and L, February-March 2015 Operating Account Statements.
  10. 100. From its access to the Operating Account, Fast Advance was able to see that starting on April 17, 2015, Network Salon began regularly writing large checks to and receiving large checks from Bathhouse. A copy of the April 2015 Operating Account Statement is attached as Exhibit M.
  11. 101. On May 4, 2015, Network Salon and Fast Advance entered into a second MCA agreement in which Fast Advance purported to pay off existing Network Salon debt in the amount of $76,475 and to advance $50,000 to Network Salon in exchange for Network Salon’s promise to pay $177,039 (the “Second Fast Advance Agreement”).
  12. 102. On information and belief, on May 4, 2015, Fast Advance deposited $48,832.00 into the Operating Account. A copy of the May 2015 Operating Account Statement is attached as Exhibit N.
  13. 103. On May 5, 2015, Fast Advance began making two daily debits to the Operating Account of $ 1,106.49 each, for a total of $2,212.98 each business day. See Ex. N, May 2015 Operating Account Statement.
  14. 104. From its access to Network Salon’s bank accounts, Fast Advance was able to see that on June 5, 2015, Yellowstone began new daily debits of $1,199 from the Yellowstone Account. A copy of the June 2015 Yellowstone Account Statement is attached as Exhibit O.
  15. 105. On August 14, 2015, Network Salon and Fast Advance entered into a third MCA agreement, (the “Third Fast Advance Agreement”), in which Fast Advance purported to pay off existing debt of $63,573.27 and to advance $30,000 to Network Salon in exchange for Network Salon’s promise to pay $131,002.58.
  16.  
  17. 106. On information and belief, on August 14, 2015, Fast Advance deposited
  18.  
  19. $27,550.51 to the Operating Account. A copy of the August 2015 Operating Account Statement is attached as Exhibit P.
  20. 107. On August 17, 2015, Fast Advance began debiting $1,488.67 from the Operating Account every business day. See Ex. P, August 2015 Operating Account Statement.
  21. 108. On or about September 22, 2015, and in connection with the First LQD Loan, LQD paid $107,183.86 to Fast Advance, completely retiring Network Salon’s debts to Fast Advance. See Ex. B, First LQD Loan Agreement, Schedule A.
  22. I. The CBSG Agreements
  23.  
  24. 109. Since on or before March 26, 2015, and during the pendency of the Fast Advance Agreements, CBSG has provided MCAs to Network Salon (the “CBSG Transactions”).
  25. 110. Despite sections 2.11 and 3.1 of the Fast Advance Agreements and the FAF Addendum, CBSG entered into MCA agreements with Network Salon while the Fast Advance Agreements were in effect.
  26. 111. At all times relevant, Fast Advance and CBSG were each aware that the other was engaged in MCA transactions with Network Salon.
  27. 112. Between March 25, 2015 and March 21, 2016, CBSG entered into at least fifteen MCA agreements with Network Salon (the “CBSG Agreements” and with the Fast Advance Agreements, the “Agreements”), attached hereto as Group Exhibit Q.
  28. 113. Each of the CBSG Agreements was a form contract substantially similar to the Fast Advance Agreements and contained identical definitions of the term “Receipts” and identical sections 2.11 and 3.1.
  29. 114. At all times relevant to this Complaint, CBSG was aware that Ms. Hill and Network Salon were repeat customers of various MCA providers, including Fast Advance.
  30.  
  31. 115. In connection with each CBSG Agreement, Ms. Hill was required to execute a Confession of Judgment on her own behalf as well as for Network Salon.
  32. 116. Each of the first six CBSG Agreements included an addendum similar to the FAF Addendum (the “CBSG Addendum”). Beginning on September 22, 2015, the date of the First LQD Loan Agreement, the CBSG Addendum was omitted from the CBSG Agreements.
  33. J. Terms of the Agreements
  34.  
  35. 117. Section 1.10 of each Agreement provides that Network Salon’s payments “shall be conditioned upon [Network Salon’s] sale of products and services and the payment therefore (sic) by [Network Salon]’s customers in the manner provided in Section 1.1.
  36. 118. Sections 1.1 and 1.2 of the Agreements provide payments shall be deducted from “settlement amounts which would otherwise be due to [Network Salon] for electronic check transactions.”
  37. 119. In connection with each Agreement, Network Salon was required to grant either CBSG or Fast Advance security interests in all its assets.
  38. 120. In connection with each Agreement, Ms. Hill was required to grant a personal guaranty.
  39. 121. In connection with each Agreement, Ms. Hill was required to execute a Confession of Judgment on her own behalf as well as for Network Salon.
  40. 122. In the Agreements, Fast Advance and CBSG purported to purchase Network Salon’s future accounts receivable due to Network Salon’s sale of goods and services.
  41. K. The CBSG Account
  42.  
  43. 123. From March 30, 2015 through September 22, 2015, CBSG made all its deposits to and ACH debits from the Operating Account, held at 5/3.
  44.  
  45. 124. On or about September 17, 2015, CBSG required Ms. Hill to open a new account, ending in the numbers 7802, at BMO (the “CBSG Account”), rather than 5/3, to conceal CBSG’s transactions with Network Salon from LQD and from other MCA Providers who had online access to the Network Salon accounts at 5/3. A copy of the CBSG Account Statements from September 2015 through March 2016, indicating that the account was opened on September 17, 2015, is attached as Group Exhibit R.
  46. 125. On September 22, 2015, Ms. Hill sent the email attached as Exhibit S to Joseph
  47.  
  48. McElhone at the email address joemack888@aol.com, telling him that she had opened the CBSG Account and providing online access information.4
  49. 126. Mr. McElhone responded, “Great job!” and told Ms. Hill that he “liked” her for
  50.  
  51. $150,000. See Exhibit S.
  52.  
  53. 127. On September 22, 2015, the date of the First LQD Loan Agreement, CBSG and Network Salon entered into an MCA Agreement in which CBSG purported to purchase $284,000 of Network Salon’s “Receipts” for $200,000 (defined in paragraph 194, below, as the “Seventh CBSG Agreement”).
  54. 128. On September 23, 2015, CBSG deposited $198,432 into the CBSG Account and, from that time on, made all its daily debits from the CBSG Account.
  55. L. Network Salon MCA Transactions from March 2015 through Aril 2016
  56.  
  57. March 2015 Transactions
  58.  
  59. 129. In the MCA agreement between Network Salon and CBSG dated March 26, 2015, (the “First CBSG Agreement”), and while the First Fast Advance Agreement was in effect,
  60.  
  61.  
  62.  
  63. 4 Although the Trustee requested all “correspondence or other Communications between Network [Salon] or Anthia
  64. R. Hill and the Defendant dated or that occurred within the four years leading up to the Petition Date,” CBSG did not produce this email.
  65.  
  66. CBSG purported to pay off World Global and New Era in the respective amounts of $15,980 and
  67.  
  68. $37,673.005, for a total of $53,653, in exchange for Network Salon’s promise to pay $76,187.26.
  69.  
  70. 130. On March 30 and 31, 2015, CBSG debited the Operating Account $856.26.
  71.  
  72. Beginning April 1, 2015, CBSG debited the Operating Account $865.76 each business day. See
  73.  
  74. Ex. L, March 2015 Operating Account Statement.
  75.  
  76. 131. Prior to entering into the First CBSG Agreement, CBSG was aware that Network Salon already owed money to other MCA providers, including Fast Advance, and was making payments from the Operating Account to MCA providers Fast Advance, World Global Finance, LLC, and New Era Lending in the total daily amount of $3,161. See Exs. K-L, February and March 2015 Operating Account Statements.
  77. April 2015 Transactions
  78.  
  79. 132. On April 16, 2015, while the First Fast Advance Agreement was in effect, Network Salon entered into an MCA agreement with Cap Call in which Cap Call purported to advance
  80. $37,000 to Bathhouse in exchange for a total of $55,130 to be repaid at the “Specified Daily Amount” of $625 every business day (the “First Bathhouse Agreement”). Cap Call deposited the proceeds of the First Bathhouse Agreement into the Bathhouse Account.
  81. 133. Cap Call made its debits in connection with the First Bathhouse Agreement from the Bathhouse Account, but CBSG was able to see numerous checks to and from Bathhouse in the Operating Account. See Exs. K-M, February-April 2015 Operating Account Statements.
  82. 134. On April 21, 2015, while the First Fast Advance Agreement was in effect, Network Salon and CBSG entered into an MCA agreement in which CBSG purported to pay off $61,460 of
  83.  
  84.  
  85.  
  86.  
  87.  
  88. 5 The document produced by CBSG is illegible.
  89.  
  90. Network Salon’s existing debt and to advance $70,000 to Network Salon in exchange for Network Salon’s promise to pay $186,687.40 (the “Second CBSG Agreement”).
  91. 135. On April 23, 2015, CBSG began debiting the Operating Account $1,553.73 each business day. See Ex. K, April 2015 Operating Account Statement.
  92. 136. Prior to entering into the Second CBSG Agreement, CBSG was aware that Network Salon already owed money to Fast Advance and was making daily payments from the Operating Account to Fast Advance in the amount of $1,590.
  93. May 2015 Transactions
  94.  
  95. 137. On information and belief, on or about May 11, 2015, while the Second Fast Advance Agreement and the Second CBSG Agreement were in effect, Network Salon entered into a new MCA agreement with World Global (the “Second World Global Agreement”).
  96. 138. On information and belief, on May 11, 2015, World Global deposited $57,460 into the Operating Account. CBSG was aware of this deposit through its online access to the Operating Account. See Ex. N, May 2015 Operating Account Statement.
  97. 139. Also on May 11, 2015, World Global began debiting the Operating Account $883 each business day. CBSG was aware of these debits through its online access to the Operating Account. See id.
  98. 140. On May 26, 2015, and while the Second Fast Advance Agreement and the Second World Global Agreement were in effect, Network Salon and CBSG entered into an MCA agreement in which CBSG purported to advance $60,000 to Network Salon in exchange for Network Salon’s promise to pay $84,000 (the “Third CBSG Agreement”).
  99. 141. On information and belief, on May 27, 2015 CBSG deposited $58,732.00 into the Operating Account. See id.
  100.  
  101. 142. On May 29, 2015, CBSG began debiting the Operating Account $840 each business day in addition to the $1,553.73 it was already debiting in connection with the Second CBSG Agreement. See id.
  102. 143. On May 28, 2015, while the Second Fast Advance Agreement, the Third CBSG Agreement, and the Second World Global Agreement were in effect, Network Salon entered into an additional MCA agreement with Cap Call in which Cap Call purported to advance $60,000 to Bathhouse in exchange for a total of $89,400 to be repaid at the “Specified Daily Amount” of
  103. $899 every business day.
  104.  
  105. June 2015 Transactions
  106.  
  107. 144. On June 3, 2015, while the Second Fast Advance Agreement, the Third CBSG Agreement, and the Second World Global Agreement were in effect, Network Salon entered into a new MCA agreement with Yellowstone in which Yellowstone purported to purchase $116,000 of Network Salon’s receivables for $80,000 (the “June 2015 Yellowstone Agreement”).
  108. 145. On June 5, 2015, Yellowstone deposited $71,000 into the Yellowstone Account.
  109.  
  110. CBSG and Fast Advance were both able to see this deposit through their online access to Network Salon’s accounts. See Ex. O, June 2015 Yellowstone Account Statement.
  111. 146. On June 5, 2015, Yellowstone began debiting the Yellowstone Account $1,199 each business day. CBSG and Fast Advance were both able to see these debits through their online access to Network Salon’s accounts. See id.
  112. 147. On June 15, 2015, while the Second Fast Advance Agreement, the Second World Global Agreement, and the June 2015 Yellowstone Agreement were in effect, Network Salon and CBSG entered into an MCA agreement in which CBSG purported to pay off $73,920 of Network Salon’s existing debt and to advance $60,000 to Network Salon in exchange for Network Salon’s promise to pay $187,488 (the Fourth CBSG Agreement”).
  113.  
  114. 148. On June 17, 2015, CBSG began debiting the Operating Account $1,874.88 each business day in addition to the $1553.73 it was already debiting in connection with the Second CBSG Agreement. See June 2015 Operating Account Statement, attached as Exhibit T.
  115. July 2015 Transactions
  116.  
  117. 149. On July 3, 2015, while the Second Fast Advance Agreement, the Second World Global Agreement, and the June 2015 Yellowstone Agreement were in effect, Network Salon and CBSG entered into an MCA agreement in which CBSG purported to pay off $106,479 of Network Salon’s existing debt and to advance $80,000 to Network Salon in exchange for Network Salon’s promise to pay $261,070 (the “Fifth CBSG Agreement”).
  118. 150. On information and belief, on July 3, 2105, CBSG deposited $78,732 to the Operating Account. See July 2015 Operating Account Statement, attached as Exhibit U.
  119. 151. On July 6, 2015, CBSG began debiting the Operating Account $2,373.37 each business day in addition to the $1,874.88 it was already debiting in connection with the Fourth CBSG Agreement. See id.
  120. 152. On July 9, 2015, while the Second Fast Advance Agreement, including the Addendum, the Fifth CBSG Agreement, including the CBSG Addendum, the Second World Global Agreement, and the June 2015 Yellowstone Agreement were in effect, Network Salon, through Bathhouse, entered into a new MCA agreement with Cap Call, in which Cap Call purported to advance $110,000 to Bathhouse in exchange for a total of $163,900 to be repaid at the “Specified Daily Amount” of $1,399 every business day (the “July 2015 Cap Call Agreement”).
  121. 153. Despite its July MCA advances from CBSG and Cap Call, in July 2015, Network Salon was unable to make its required daily payments to CBSG. See id.
  122.  
  123. 154. From July 14, 2015 through August 3, 2015, CBSG’s two daily debits to the Operating Account changed to $1,000 and $1,500, respectively. On August 3, 2015, CBSG resumed two daily debits in the respective amounts of $1,74.88 and $2,373.37. See id.
  124. August 2015 Transactions
  125.  
  126. 155. In August 2015, Network Salon’s capitalization problems increased. The Operating Account was substantially overdrawn on ten of the twenty-one business days in August 2015. 5/3 returned multiple checks and ACH debits drawn on the Operating Account. See Ex. P. August 2015 Operating Account Statement.
  127. 156. On August 3, 2015, the Operating Account was overdrawn by $34,926.45. 5/3 paid eleven items for Network Salon, including the Fast Advance and CBSG debits of $1,74.88 and
  128. $2,373.37. See id.
  129.  
  130. 157. On August 4, 2015, CBSG debited the Operating Account for $1,000 in addition to the daily debits of $1,74.88 and $2,373.37. See id.
  131. 158. On August 4, 2015, despite a $40,000 deposit from the Bathhouse Account, the Operating Account was overdrawn by $18,138.74. 5/3 paid all three CBSG items for that day but returned the two Fast Advance debits. See id.
  132. 159. On August 5, 2015, CBSG made two debits to the Operating Account in the amounts of $937.44 and $1,186.69, respectively, and Fast Advance made one debit in the amount of $1,106.49. These amounts equal half of Network Salon’s scheduled payments. See id.
  133. 160. Network Salon continued to make half-payments to Fast Advance and CBSG through August 14, 2015, when it entered into the Third Fast Advance Agreement. See Ex. P, August 2015 Operating Account Statement.
  134. 161. On August 7, 2015, despite a $20,000 deposit from the Bathhouse Account on August 6, 2015 and a $19,000 deposit from the Bathhouse Account on August 7, 2015, the
  135.  
  136. Operating Account was overdrawn by $64,340.32. 5/3 covered numerous items for Network Salon, including the half-payment debits from Fast Advance and CBSG. See id.
  137. 162. On August 13, 2015, despite a $5,000 transfer from the Bathhouse Account on August 12, 2015 and a $4,000 transfer from the Bathhouse Account on August 13, 2015, the Operating Account was overdrawn by $13,586.52. See id.
  138. 163. On August 13, 2015, 5/3 returned the $1,186.69 CBSG debit and the $1,106.49 Fast Advance debit but paid the $937.44 CBSG debit. See id.
  139. 164. On August 17, 2015, Network Salon continued half-payments to CBSG, but Fast Advance began daily debits of $1,488.67 to the Operating Account in connection with the Third Fast Advance Agreement. See id.
  140. 165. On August 17, 2015, while the Third Fast Advance Agreement, the Fourth and Fifth CBSG Agreements, the Second World Global Agreement, and the July 2015 Cap Call Agreement were in effect, Network Salon entered into a new MCA agreement with Yellowstone in which Yellowstone purported to purchase $117,500 of Network Salon’s receivables for
  141. $171,000 (the “August 2015 Yellowstone Agreement”).
  142.  
  143. 166. On August 18, 2015, Yellowstone deposited $55,000 to the Yellowstone Account and began debiting the Yellowstone Account $1,725 each business day. A copy of the August 2015 Yellowstone Account Statement is attached as Exhibit V. Through their online access to the
  144. Yellowstone Account, Fast Advance and CBSG were able to see the deposit and the debits.
  145.  
  146. 167. On August 18, 2015, Ms. Hill transferred $40,000 from the Yellowstone Account to the Operating Account. See Ex. P, August 2015 Operating Account Statement.
  147. 168. On August 18, 2015, CBSG made two half-payment debits and an additional debit of $1,261.69. See id.
  148.  
  149. 169. On August 19, 2015, despite a $10,000 transfer from the Yellowstone Account and a $7,000 transfer from the Bathhouse Account6, the Operating Account was overdrawn by
  150. $8,304.22. See id.
  151.  
  152. 170. On August 19, 2015, CBSG made two half-payment debits and Fast Advance made a debit of $1,488.67. 5/3 paid the two CBSG debits and the Fast Advance debit. See id.
  153. 171. On August 20, 2015, despite an $8,000 transfer from the Bathhouse Account7, the
  154.  
  155. Operating Account was overdrawn by $5,064.99. See id.
  156.  
  157. 172. On August 20, 2105, CBSG made two half-payment debits and Fast Advance made a debit of $1,488.67. 5/3 paid the two CBSG debits and the Fast Advance debit. See Ex. P, August 2015 Operating Account Statement.
  158. 173. On August 21, 2015, despite a $14,000 transfer from the Bathhouse Account8, the
  159.  
  160. Operating Account had a balance of $331.08. See id.
  161.  
  162. 174. On August 24, 2015, the Operating Account was overdrawn by $1,425.19.
  163.  
  164. 175. On August 24, 2015, CBSG made two half-payment debits and Fast Advance made a debit of $1,488.67. 5/3 paid the two CBSG debits and the Fast Advance debit. See id.
  165. 176. On August 25, 2015, the Operating Account was overdrawn by $2,607.56. See id.
  166.  
  167. 177. On August 25, 2015, CBSG made two half-payment debits and Fast Advance made a debit of $1,488.67. 5/3 returned the two CBSG debits but paid the Fast Advance debit. See id.
  168. 178. On August 26, 2015, the Operating Account was overdrawn by $4,244.23. See Ex.
  169.  
  170. P, August 2015 Operating Account Statement.
  171.  
  172.  
  173.  
  174.  
  175.  
  176.  
  177.  
  178. 6 5/3 returned this item unpaid on August 20, 2015 and charged the Operating Account $7,000. 7 5/3 returned this item unpaid on August 21, 2015 and charged the Operating Account $8,000. 8 5/3 returned this item unpaid on August 24, 2015 and charged the Operating Account $14,000.
  179.  
  180. 179. On August 26, 2015, CBSG made two half-payment debits and Fast Advance made a debit of $1,488.67. 5/3 paid the two CBSG debits and the Fast Advance debit. See id.
  181. 180. On August 27, 2015, the Operating Account was overdrawn by $ 14,354.20. See id.
  182.  
  183. 181. On August 27, 2015, CBSG made two half-payment debits and Fast Advance made a debit of $1,488.67. 5/3 paid the two CBSG debits and the Fast Advance debit. See id.
  184. 182. On August 28, 2015, CBSG made two half-payment debits and Fast Advance made a debit of $1,488.67. The debits were paid without creating overdrafts. See id.
  185. 183. On August 31, 2015, Ms. Hill deposited a $10,250 check from her mother, Paula Walker, in the Operating Account. See Ex. P, August 2015 Operating Account Statement.
  186. 184. On August 31, 2015, CBSG made two half-payment debits and Fast Advance made a debit of $1,488.67. The debits were paid without creating overdrafts. See id.
  187. September 2015 Transactions
  188.  
  189. 185. In September 2015, World Global, CBSG, and Fast Advance continued to debit daily from the Operating Account. See, September 2015 Operating Account Statement, attached as Exhibit W. Yellowstone continued to debit from the Yellowstone Account and Cap Call
  190. continued to debit from the Bathhouse Account.
  191.  
  192. 186. From September 1, 2015 through September 4, 2015, CBSG continued to make daily half-debits and Fast Advance continued to debit $1,488.67 each business day. See id.
  193. 187. On September 3, 2015, while the Second Fast Advance Agreement, the Fourth and Fifth CBSG Agreements, the Second World Global Agreement, the June 2015 Yellowstone Agreement, and the July 2015 Cap Call Agreement were in effect, Network Salon and CBSG entered into an MCA agreement in which CBSG purported to advance $100,000 to Network Salon in exchange for Network Salon’s promise to pay $140,000 (the “Sixth CBSG Agreement”).
  194.  
  195. 188. On information and belief, on September 3, 2015, CBSG deposited $98,432 into the Operating Account. See id.
  196. 189. On September 4, 2015, CBSG debited $1,400 from the Operating Account in addition to two half-debits. See id.
  197. 190. On September 8, 2015, CBSG began to debit the full amount in connection with the Fourth and Fifth CBSG Agreements, so that from September 8, 2015 through September 13, 2015, CBSG made three daily debits to the Operating Account in the respective amounts of $1,400,
  198. $1,874.88, and $2,373.37. Fast Advance continued to make daily debits of $1,488.67. See id.
  199.  
  200. 191. By September 11, 2015, the $98,432 advance from the Sixth CBSG Agreement was gone and the Operating Account was overdrawn by $7.89. See Ex. V, September 2015 Operating Account Statement.
  201. 192. On September 14, 2015, CBSG returned to half-debits on the Fourth and Fifth CBSG Agreements and debited $1,400 on account of the Sixth CBSG Agreement. Fast Advance made its daily debit of $1,488.67. The debits continued in these amounts through September 22, 2015, the date of the First LQD Agreement. See id.
  202. 193. Yellowstone continued to debit the Yellowstone Account and Cap Call continued to debit the Bathhouse account throughout September 2015.
  203. 194. As discussed in paragraph 127, above, on September 22, 2015, the same date as the First LQD Agreement, and with full knowledge of the First LQD Agreement and its prohibitions, Network Salon and CBSG entered into an MCA agreement in which CBSG purported to purchase
  204. $284,000 of Network Salon’s receivables in exchange for Network Salon’s promise to pay
  205.  
  206. $284,000 (the “Seventh CBSG Agreement”). The Seventh CBSG Agreement specifies that CBSG would debit the “Specific Daily Amount” of $2,151.52 from Network Salon.
  207.  
  208. 195. On September 23, 2015, CBSG deposited $198,432 into the CBSG Account and, from that time on, made all its daily debits from the CBSG Account. See Ex. R, CBSG Account Statements.
  209. 196. CBSG was also able to see that Yellowstone’s debits continued in the Yellowstone Account and that World Global’s debits continued in the Operating Account.
  210. 197. Although the Seventh CBSG Agreement makes no reference to any debits other than the specified $2,151.52, on September 23, 2015, CBSG also began to debit $1,400 daily from the CBSG Account. On information and belief, CBSG and Network Salon concealed the debt owing in connection with the Sixth CBSG Agreement from LQD and transferred its $1,400 “Specific Daily Amount” to the CBSG Account. See id.
  211. 198. On September 25, 2015, CBSG began additional daily debits of $2,151.52 to the CBSG Account. See id.
  212. 199. Although CBSG conducted all its Network Salon transactions from September 23, 2015 through the Petition Date in the CBSG Account, it retained its online access to certain of Network Salon’s accounts at 5/3, including the Operating Account and the Yellowstone Account.
  213. October 2015 Transactions
  214.  
  215. 200. On October 1, 2015, Bathhouse entered into a new MCA Agreement with Cap Call in which Cap Call purported to advance $75,000 to Bathhouse in exchange for a total of $112,425 to be repaid at the “Specified Daily Amount” of $995 every business day.
  216. 201. On October 2, 2015, Cap Call deposited $74,295.00 into the Bathhouse Account.
  217.  
  218. 202. On October 2, 2015 Network Salon transferred $52,000 from the Bathhouse Account to the Operating Account. See October 2015 Operating Account Statement, attached as Exhibit X.
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