A Mound man was being sued for allegedly bilking a funder out of millions, only to die days after the suit was filed.
Brett Schraber and his check-cashing businesses, EZ Capital and EZ Cash, claimed to pay out workers’ compensation settlements early, according to court filings. The companies would pay out smaller lump sums ahead of time, with the full settlements later going to the EZ companies.
But Robert Zakheim of Minnetonka, who said he loaned Schraber and the businesses $100 million over four years through two other companies, now claims the EZ scheme was a sham and filed a lawsuit on Jan. 16.
According to the suit, Schraber claimed to have worked with attorneys who represented injured workers, but those attorneys told the lenders they had never worked with Schraber or the purported clients. There were no cases and no injured workers, the suit alleges.
A judge appointed a receiver to take control of Schraber’s companies and assets Jan. 21.
According to an obituary, Schraber died the following day.