Rawlings-Blake sued for $2 million over a business loan she allegedly failed to pay
Baltimore’s former mayor, who left office in 2016, has not responded to two demand letters. Late fees are piling up, an Indiana-based bank says in a complaint filed in U.S. District Court.
Above: Stephanie Rawlings-Blake in 2023 when she was executive director of the National Basketball Players Association Foundation. (NBPA)
Baltimore’s former mayor, Stephanie Rawlings-Blake, owes $2.1 million to Old National Bank.
The Indiana-based bank filed the lawsuit, seeking a confessed judgment, in federal court in Baltimore yesterday. The filing was first reported by Courthouse News Service.
Rawlings-Blake, who became mayor in 2010 when Sheila Dixon resigned and served through 2016, is listed on loan documents as president of Gulf Coast Technology Corporation and manager of Buy MBE LLC, the two companies that purportedly received the loan proceeds.
Rawlings-Blake allegedly failed to respond to two demand letters from the bank.
“The defendant absolutely, unconditionally and irrevocably guarantees repayment of the note pursuant to a U.S. Small Business Administration Unconditional Guarantee dated November 8, 2023, from the defendant in favor of the lender,” the bank wrote.
Early payments were made, but they stopped in May 2023, according to court documents, which describe late fees piling up and interest accruing at $562 per day.
The $2 million loan, backed by the Small Business Administration and made by Capstar Bank at an interest rate of prime plus three percent, was set to mature in 10 years, with $28,000 monthly payments.
Rawlings-Blake signed an unconditional guarantee, meaning that she would pay back the money if the businesses did not.
Rawlings-Blake, who also headed the United States Conference of Mayors and was secretary of the Democratic National Committee, could not be reached for comment.
Two Businesses
Buy MBE’s website indicates that it is a business-to-business company that “introduces local and midsized businesses to Fortune 500 buyers utilizing a unified procurement platform.”
“Buy MBE LLC is a majority minority-owned-and-controlled company focused on supporting and maintaining the critical infrastructure needs of the utility, infrastructure and oil and gas industries,” the website states.
“Ms. Rawlings-Blake’s experience as the Mayor of Baltimore coupled with the depth of C-Suite knowledge within Buy-MBE management teams will provide an Electronic Platform and App with scalability to expand Minority Business Spending Solution,” it says.
Gulf Coast Technology has a smaller footprint, with no significant web presence. Both companies are listed at the same Baton Rouge, La., address.
The other name on corporate documents is Kevin Pomerleau, who did not immediately respond to email and text messages. His phone voicemail box was full.
Pomerleau’s LinkedIn profile says he is a utilities infrastructure executive.
“He worked on many notable projects, such as the Sable Trail Pipeline Project, the Marapaus Pipeline Project, the Northeast Grid Reliability Project, Keystone Southern XL, MPRP, and the construction of the Monticello Mississippi Sawmill,” an online bio says.
“His areas of expertise reside in the areas of finance, business development, operations management, accounting and information systems,” it also notes.
In 2019, two Pomerleau businesses – Global Environmental Solutions, Inc. and Global Energy Solutions, Inc. – filed a bankruptcy petition in Virginia, owing more than $800,000 to the IRS, $1.4 million to an insurance company and $15 million to Key Bank, among other debts.
The final listed creditor is the Baltimore Ravens.
Less than a year after that bankruptcy, Rawlings-Blake and Pomerleau founded Obsidian Integrated LLC. An online guide claims the company “primarily operates in the Water, Sewer and Utility Lines business/industry within the Heavy Construction, Except Building Construction, Contractor sector. This organization has been operating for approximately seven years.”
The company’s charter was registered in Maryland in 2020 and forfeited in 2021.
Kevin Pomerleau’s photo on Twitter. (@Kevinpomerleau)
After City Hall
Rawlings-Blake left office in 2016 in the wake of city riots following the in-custody death of Freddie Gray. She later served briefly as spokeswoman for rapper Travis Scott.
After leaving City Hall, she set up a consultancy called SRB & Associates with an office in Roland Park. According to records on file with the state, the LLC was forfeited for failing to file forms in 2019. The company’s website resolves to her Instagram page.
In November 2022, Rawlings-Blake was named executive director of National Basketball Players Association (NBPA) Foundation.
As head of the philanthropic arm of the NBA players union, she attended the 2023 NBA draft in New York and had the opportunity to mingle with the players and pose with celebrities, such as civil rights activist and former NFL quarterback Colin Kaepernick.
But just over a year later, she disclosed she was stepping down from that position.
“As I leave to pursue new opportunities, I can’t wait to share the work we accomplished at NBPA Foundation,” she wrote in a January 2024 Instagram post.
The following month she announced that she was chair of Airbnb’s newly formed Housing Council.
The council would be advising Airbnb “on the policies, initiatives and partnerships it can support to help spur housing supply and better balance the benefits of home sharing with the needs of communities.”
To reach a reporter: editors@baltimorebrew.com
Image of Stephanie Rawlings-Blake from her consulting company, SRB & Associates, which has since been forfeited (below).
