A Florida lender is suing embattled San Antonio attorney Martin Phipps and two former law partners it alleges have made no payments on $58 million in loans they took out to finance litigation. Employee Funding of America LLC of Dania Beach, Fla., says the total amount owed exceeded $139.7 million — which includes interest — as of Monday, when it filed the complaint in state District Court in San Antonio.
Unable to collect the debt from Phipps and his former partners, Employee Funding is suing Clark and Flowers in an attempt to “avoid revealing to its investors that lost their money due to its greed and negligence.” The Phipps law firm said in its statement that until the Wharton County court matter is resolved, the litigation brought by Employee Funding is “inappropriate and untimely.” Brian O’Toole, an Austin lawyer representing the lender, didn’t respond to a request for comment.