Mike Lindell, the far-right CEO of "cash-strapped" MyPillow, is suing a corporate payday lending company, alleging that he was duped into borrowing $1.6 million at a 409% annual interest rate, according to a report.
Lindell, who has been sued for repeating false claims that the 2020 presidential election was rigged, and MyPillow agreed to borrow the money from New York City-based Cobalt Funding Solutions in September.
Under the terms, he was to make 50 daily payments of more than $45,000 for a total payment of $2,261,510, which "is many times greater than the maximum interest rate permitted under the applicable state usury law," the lawsuit says, according to the Star Tribune.
Lindell and his company also claim that Cobalt required them to pay a $124,760 "origination fee" that was deducted from the original funds, resulting "in an even greater rate of interest charged."
The lawsuit claims Cobalt, another company involved in the loan, Streamline Advance and two other defendants "took advantage" of MyPillow, a "a cash-strapped business that needed funds quickly."
"Plaintiffs have now learned that the arrangement with Cobalt was made based on defendants' concerted misconduct and fraudulent statements, that the entire nature of the transaction was misrepresented, that the loan was and that the defendants' coordinated misconduct violates RICO," the lawsuit says, referring to the Racketeer Influenced and Corruptions Act.
The report said the legal action is among other suits filed involving MyPillow and other merchant cash advances.
Lifetime Funding alleged in October that Lindell and his companies defaulted on a $600,000 advance a month after borrowing it, Business Insider reported.
Shine Capital Group accused Lindell of defaulting on a $2 million loan agreement in July.
Lindell also owes a $5 million award over his claims that China interfered in the 2020 presidential election.
He's also being sued for $1.3 billion by Dominion Voting Systems for falsely accusing the company of rigging the 2020 election.
