1 00:00:00.400 --> 00:00:03.600 They're essentially two different cabbages one is technically 2 00:00:03.600 --> 00:00:06.600 cabbage ink, which is Legacy cabbage. 3 00:00:06.600 --> 00:00:09.300 That's not related to the Cabbage that was acquired by 4 00:00:09.300 --> 00:00:12.300 American Express. They used to be one of the same now, they 5 00:00:12.300 --> 00:00:15.400 are different Legacy cabbage is the one that was in 6 00:00:15.400 --> 00:00:19.300 charge of managing the PPP portfolio cabbage 7 00:00:18.300 --> 00:00:21.700 with a big PPP lender during the 8 00:00:21.700 --> 00:00:24.600 pandemic and the Legacy cabbage 9 00:00:24.600 --> 00:00:24.900 entity. 10 00:00:25.500 --> 00:00:28.200 I was in charge of managing that PPP portfolio. 11 00:00:29.400 --> 00:00:32.900 However, apparently there may have been some alleged 12 00:00:32.900 --> 00:00:35.300 improprieties with how all of that was 13 00:00:35.300 --> 00:00:39.100 conducted they are and they have revealed and 14 00:00:38.100 --> 00:00:41.300 already told the world and disclosed that they are being 15 00:00:41.300 --> 00:00:42.800 investigated by the doj. 16 00:00:43.500 --> 00:00:46.200 Not just by one, I guess Department of 17 00:00:46.200 --> 00:00:49.300 it but different different arms. I 18 00:00:49.300 --> 00:00:52.900 think it was like the US attorney's office in in 19 00:00:52.900 --> 00:00:56.100 Washington DC Massachusetts and 20 00:00:55.100 --> 00:00:58.400 one other district and I think at 21 00:00:58.400 --> 00:01:01.300 least one of them is civil and potentially one of another one may even 22 00:01:01.300 --> 00:01:03.100 be criminal from what I am from what I understand. 23 00:01:04.300 --> 00:01:07.500 And then if you read the bankruptcy petition as I did 24 00:01:07.500 --> 00:01:10.900 today, you also find that the Federal 25 00:01:10.900 --> 00:01:13.700 Trade Commission is also listed among one 26 00:01:13.700 --> 00:01:16.900 of their top potential creditors. And 27 00:01:16.900 --> 00:01:19.100 so I'm not sure if it was already disclosed that they 28 00:01:19.100 --> 00:01:21.500 were potentially in some type of legal. 29 00:01:22.600 --> 00:01:25.800 Dispute or litigation with the FTC, but apparently 30 00:01:25.800 --> 00:01:26.100 they are. 31 00:01:27.300 --> 00:01:30.700 And what everyone needs to know about the Cabbage the Legacy cabbage 32 00:01:30.700 --> 00:01:33.800 bankruptcy is that it was essentially caused by 33 00:01:33.800 --> 00:01:36.000 this sheer cost caused by 34 00:01:36.500 --> 00:01:39.700 these investigations and I guess bankruptcy puts them 35 00:01:39.700 --> 00:01:42.600 in and I guess in a some sort of a better bargaining 36 00:01:42.600 --> 00:01:45.200 point if they were to reach any type of settlement with these 37 00:01:45.200 --> 00:01:48.600 agencies because it's not really up to them to just pay 38 00:01:48.600 --> 00:01:51.500 whatever they want it, you know at this point. There's a 39 00:01:51.500 --> 00:01:54.200 whole bankruptcy process for how you pay your debts and how much you can 40 00:01:54.200 --> 00:01:57.400 pay and so forth. So, it's Legacy cabbage. They 41 00:01:57.400 --> 00:02:00.400 call that case servicing in the announcement case servicing, but 42 00:02:00.400 --> 00:02:03.400 technically, you know, it's cabbage Inc Legacy cabbage. 43 00:02:04.100 --> 00:02:07.600 File Chapter 11 because of his sheer cost it 44 00:02:07.600 --> 00:02:10.800 incurred and is incurring due to the investigation 45 00:02:10.800 --> 00:02:14.600 by the doj and yet apparently FTC but 46 00:02:13.600 --> 00:02:17.800 with the doj over its alleged potentially 47 00:02:16.800 --> 00:02:19.900 mishandling of PPP. 48 00:02:19.900 --> 00:02:22.600 Yeah and something that was interesting that obviously 49 00:02:22.600 --> 00:02:25.400 cabbage like you said earlier was one of the companies that 50 00:02:25.400 --> 00:02:28.600 was handling the PPP distributions and now 51 00:02:28.600 --> 00:02:31.200 they're in a situation like this and I know when we 52 00:02:31.200 --> 00:02:34.100 spoke about PPP in the past it was you know, it was 53 00:02:34.100 --> 00:02:35.800 a hot thing, you know when 54 00:02:36.700 --> 00:02:39.400 A year ago year and a half ago. And now I think 55 00:02:39.400 --> 00:02:43.100 something you and I talked about is event eventually if 56 00:02:42.100 --> 00:02:46.000 you misuse it if you do if 57 00:02:45.200 --> 00:02:48.800 you use it incorrectly the government will catch 58 00:02:48.800 --> 00:02:49.100 up to you. 59 00:02:49.700 --> 00:02:52.200 That's what we had mentioned. You know, we spoke about, 60 00:02:52.200 --> 00:02:55.400 you know, misusing PPP funds and 61 00:02:55.400 --> 00:02:58.400 whatnot. And now we're seeing that play out here. Yeah. 62 00:02:58.400 --> 00:03:01.300 Well, this is different. This is this is cabbage being in trouble getting 63 00:03:01.300 --> 00:03:04.300 potentially in trouble for how it dispersed. 64 00:03:05.300 --> 00:03:08.600 The PPP loans the process that it took to give out 65 00:03:08.600 --> 00:03:11.500 the loans forget about what to borrowers did it's 66 00:03:11.500 --> 00:03:14.400 something you know has something to do with how they dispersed and 67 00:03:14.400 --> 00:03:17.900 approve the loans. That's what's being examined. That's that's my understanding here. 68 00:03:17.900 --> 00:03:21.200 So it's significant because cabbage was 69 00:03:21.200 --> 00:03:24.900 one of the fintech Darlings one into covid and 70 00:03:24.900 --> 00:03:27.100 you know word of the street was they're not 71 00:03:27.100 --> 00:03:30.500 doing so well, but then they became a big old PPP lender. They had 72 00:03:30.500 --> 00:03:33.300 their nice exit to American Express and said, oh the 73 00:03:33.300 --> 00:03:36.500 PPP loans will just be managed by the Legacy entity. Everything's normal. 74 00:03:36.500 --> 00:03:39.700 Nothing to see here then all the sudden you're like, hey, they're 75 00:03:39.700 --> 00:03:43.600 being investigated by the doj. And now 76 00:03:42.600 --> 00:03:45.000 there's the chapter 11. So kind of 77 00:03:45.200 --> 00:03:48.400 a kind of a big mess for the way it all ended.