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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
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Sparta Commercial Services, Alleging Fraud, Sues DZ Bank

NEW YORK, Jan. 23, 2013 /PRNewswire/ -- Sparta Commercial Services, Inc. (OTCBB: SRCO) today announced that it has initiated a lawsuit in the United States District Court for the Southern District of New York against the New York branch of DZ Bank, one of the largest banks in Germany.

The claims alleged against DZ Bank relate to a $25 million revolving credit facility issued to Sparta by DZ Bank to support Sparta's business of financing and leasing motorcycles and other powersports vehicles.  Among other claims, Sparta seeks damages of $84 million for DZ Bank's fraud and breach of its fiduciary duties.

Anthony Havens, CEO of Sparta, said:  "DZ Bank contracted with Sparta for the exclusive rights to provide Sparta with a $25 million credit facility for which we paid DZ Bank substantial six figure fees, and trusting the truth of what DZ Bank told us, we incurred substantial costs and losses which we seek to recover in this lawsuit, having learned that DZ Bank had its own, undisclosed internal issues, and misled us as to its intentions with regard to the credit facility."

As the lawsuit was only recently commenced, the ultimate disposition of the lawsuit cannot now be determined.  Sparta makes no representation about the potential outcome of the lawsuit and there may be substantial costs incurred as a result of the prosecution of the lawsuit.

About Sparta Commercial Services, Inc.

Sparta Commercial Services, Inc. is a New York-based technology company that has roots in the powersports industry where it had originally focused primarily on providing consumer and municipal financing to powersports, recreation, and auto industries.  Through its subsidiary, Specialty Reports, Inc.,  the Company offers a range of online tools and products that include a Mobile App product for Powersports, Recreational Vehicle, Watercraft, and Auto dealers, that allows the dealers to manage their own custom dealer mobile applications that are made available on multiple platforms such as iPhone, iPod Touch, iPad, Android Mobile, Android Tablet and Kindle Fire, giving consumers access to the dealerships' inventory, sales and service departments, hours, locations, special events and more (www.specialtymobileapps.com); Cyclechex, providing Motorcycle History Reports (www.cyclechex.com); RVChecks providing Recreational Vehicle History Reports (www.rvchecks.com); and CarVINreport, providing Automobile and Light Truck History Reports (www.carvinreport.com).   All of the vehicle history reports cited above are designed for consumers and retail dealers as well as for auction houses, insurance companies and banks/finance companies. Sparta continues to administer an ever-growing Municipal Leasing Program for local and/or state agencies throughout the country seeking a better and more economical way to finance their essential equipment needs, from police motorcycles and cruisers, to EMS equipment and busses, to virtually any type of equipment required. Sparta is an innovative and diversified Company dedicated to identifying the needs and interests of its targeted markets, and developing products and services specifically designed to meet those needs and interests now, and well into the future.

Contact:

Sandra L. Ahman
Corporate Secretary
Sparta Commercial Services, Inc.
sandy@spartacommercial.com

Forward-Looking Statements

This news release contains forward-looking information within the meaning of federal securities regulations. These forward-looking statements include statements related to the possible outcome of this case or any other litigation. These forward-looking statements involve risks and uncertainties, including those described from time to time in the Company's filings with the Securities and Exchange Commission (SEC) that could cause the actual results to differ materially from those anticipated by these forward-looking statements. In particular, the ultimate outcome of this case or any litigation is always uncertain and may differ materially from what is currently anticipated. The Company assumes no obligation to update any forward-looking information contained in this press release.

SOURCE Sparta Commercial Services, Inc.

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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