Bankrupt Zloop Recycling Company Spent $2.7M on NASCAR Career of CEO’s Son

by San Antonio Attorney

Zloop, a recycling company located in North Carolina, dealt with financial ordeals in 2014.  An investor was already filing a lawsuit against the company and it’s CEO Robert Boston for projecting an improbable income expectation.

According to speculations, Zloop liquidated its finances on the stock-car racing career of the CEO’s son.  Zloop spent approximately $1.7 million for a Kyle Busch Motorsports racing-sponsorship deal for Justin Boston.

Mr.  Boston and its cofounder Robert LaBarge was criticized by the Justice Department for spending more than $2.7 million of the company’s money that has nothing to do with recycling operations.

Established in 2012, it uses machines to pulverize electronic equipment and sort out valuable items such as copper, silver, gold and memory chips.

Zloop entered a two-year, $6.4 million racing deal last November 2014.  Justin Boston was promised by Kyle Busch Motorsports to receive $3,000 for every race he participates.  Justin will get benefits of bonuses plus 40% of prize money.

The extravagance of the Boston’s bothered its investors like Kendall Mosing, who presented a proposition to create Zloop branded recycling machines in Texas and Louisiana.

Mr.  Mosing’s business background comes from his grandfather, who discovered Frank’s International, an oilfield service company.  Mosing filed a case against Zloop for setting unrealistic expectations on its revenue and expansion plans.  This served as a breach for its security law as well.  Zloop owes Mosing a total of 24.2 million.

The lawsuit was barred from proceeding when the bankruptcy filing was approved last August 9.  The recycling firm’s largest revenue involves the Carolina Panthers football team, who returned a deposit of $43,500 on a luxury stadium suite.

Zloop has searched for an investor for the Hickory operations in North Carolina.  This sale will whisk the proprietorship from Boston and LaBarge, the original owners.

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