District Court documents reveal Finks bikie member Andrew Majchrak has allegedly defaulted on a $275,000 cash loan. Source: News Limited
FINKS bikie Andrew Majchrak is being sued for more than $760,000 by the brother of a former rival gang member.
District Court documents reveal Majchrak has allegedly defaulted on a $275,000 cash loan provided by Maxwell Yost - the brother of former senior Rebels bikie and killer Edward Yost, who is serving a 30-year non-parole period for torturing and then murdering his girlfriend.
The loan was provided in 2005 with court documents alleging Majchrak made just five monthly payments of $7425 before defaulting.
The statement of claim reveals that "on or about October 5, 2005" Maxwell Yost and his brother Edward agreed to lend Majchrak $275,000 on terms that included interest at the rate of 32.4 per cent per annum, monthly repayments of $7425 equating to 2.7 per cent of the principal by either bank cheque or direct bank transfer until repayment and the repayment of the principal and any outstanding interest "upon the giving of 60 days notice in writing to do so."
The claim states the loan agreement "is evidenced by a memorandum in writing" signed by Majchrak and dated October 5, 2005.
It states that shortly after the agreement was signed and before the advance of the $275,000 principal, the loan agreement "was novated upon terms that the plaintiff would advance the principal without any contribution of Edward Yost and would be solely entitled to repayments from the defendant." It states the principal was advanced to Majchrak on October 31 from Yost's "Mykya Investments" account.
When Majchrak did not make any further monthly repayments he was on July 23 given notice in writing he had 60 days to repay the loan.
"Despite the notice to repay, the defendant has failed to and continues to fail to repay the said loan together with interest in accord with the terms of the loan agreement," the claim states.
Mr Yost is claiming repayment of the $275,000 principal, interest totalling almost $520,000 - less the $37,125 he repaid in the first five instalments - a total of $760,625.