Fattmerchant Founders Entangled in Father’s Bankruptcy Woes

by San Antonio Attorney

Fattmerchant, an up-and-coming startup in the Orlando financial tech industry, has been dragged into an ongoing bankruptcy suit involving the father of one of the company’s co-founders.

Fattmerchant co-founder Sal Rehmetullah has volunteered to give $100,000 from his personal funds to help repay his father’s obligations amounting to $800,000.

Ishrat Rehmetullah, father of Fattmerchant co-founder Sal Rehmetullah, filed a bankruptcy case in 2014, which would have erased all his outstanding financial obligations.  However, the case was opened again after it was revealed that the elder Rehmetullah deliberately hid additional assets, including a residential property in Karachi, Pakistan, and was actually attempting to skip the country to evade further investigation.

Ishrat’s daughter, Suneera Madhani, has been required by the court to provide a deposition related to her father’s bankruptcy case.  Rehmetullah’s debts include a $100,000 loan from Oyster Bay Investments, as well as $572,000 foreclosure fees on his house located at the exclusive Vizcaya community.

In an attempt to settle his debts, the elder Rehmetullah has sold off his residential property in Karachi, which generated a total of $75,000 that was subsequently passed on to the bankruptcy trustee.  He also surrendered a portion of his sizeable collection of coins, sold for approximately $2,400.  Hoping to recover a larger amount than what is currently set aside for them Private lender Oyster Bay Investments have appealed for further investigation on Rehmetullah’s remaining assets.

Sal Rehmetullah’s contribution to his father’s bankruptcy settlement comes with the agreement that all of Ishrat’s creditors are prohibited from ever filing a lawsuit against Fattmerchant related to the collection of outstanding debts.

Established in 2014 by Suneera Madhani and Salman Rehmetullah, Fattmerchant presents itself as a cost-effective subscription-based credit card processing company for micro and small entrepreneurs.  It quickly gained traction as one of the most promising startups in the area, and was featured in well-known tech publications such as Fast Company and Tech Crunch.  Fattmerchant also bagged the $25,000 top prize in a competition held by Rollins College, and was recently recognized by Orlando Mayor Buddy Dyer as an excellent example of the area’s tech startup boom.

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