Bank of America is attempting to collect the money it’s owed from controversy-riddled ad agency Madwell and other entities owned by agency CEO Chris Sojka after the organizations defaulted on more than $4 million of loans, and then defaulted on post-settlement payments to the bank.
In court documents filed between January and March, reviewed by ADWEEK, the bank asked the U.S. District Court for the Eastern District of New York to issue an official judgment against Madwell and to order the turnover of collateral—meaning that any assets pledged as security for the loans should be given over to the bank to help repay the debt.
Last spring, Bank of America sued Madwell, its fabrication company Millwright, and two affiliated LLCs—Get In Get Out and Maple Syrup and Jam (doing business as Starfish) for defaulting on loans worth about $4 million. Sojka, whose aggressive behavior and exorbitant spending has coincided with Madwell’s financial troubles, is the sole owner of all of the entities.
By the end of October 2024, the total outstanding balance of the loans stood at approximately $4.59 million, which included a principal balance of about $4.04 million, plus interest, late fees, and legal fees. (Meanwhile, just weeks prior, Sojka obtained a loan to purchase a $17.5 million private jet, even as Madwell struggled to consistently make payroll on time, as previously reported by ADWEEK).
The parties reached a court-approved settlement on November 7, 2024, which required that the four defendant organizations pay back the money owed to Bank of America in installations.
Bank of America received one $400,000 principal payment on November 15, as well as a monthly interest payment due November 30. But then, defendants failed to make the next two required principal payments—due November 30 and December 31—as well as their December interest payment.
According to the settlement terms, Bank of America argues, the missed payments constitute a breach of the settlement, and give the bank the right to ask the court for immediate judgment.