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Brooke Corp. (Pink Sheets: BXXXQ) was an Overlaned Park-based insurance franchiser. It bought and sold franchises through BrookeCredit Corp. and originated and servicecd loans to franchisees through About 75 former franchisees filed suit Wednesda against AleritasCapital Corp. in U.S. District Court for the Districof Kansas. The suit accuses the Brooke companies of inflatinhg the price of agencies sold to receiving kickbacks from the sellers and settingv up a system that benefited from the failure of The suit also alleges that the Brooke companiee never provided the full services and benefit s promised infranchise agreements.
Former franchisees said in the suit that Brooke did not live up to promises and agreementa that served as the basis oftheirf decision-making in agreeing to borrow moneuy from Aleritas to acquire franchises. The former franchiseeas ask that all their loans and interesg originated by Aleritasbe canceled. They also ask for damages and reimbursemen t of attorney fees andcourt costs. In October, Brooke and filed for Chapter 11 bankruptcy Aleritas has not filedx for bankruptcy but ceased conducting andits loan-servicing relationships were Albert Riederer, the court-appointed bankruptcy trustee for the Brookee companies, said in December that the cartedr away several boxes of Riederer also said at the time that the , the Securities and Exchange Commission and other regulators also were investigatinbg the company.
Riederer could not immediately be reached forcomment
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