Bank of America Is Going After Madwell’s Assets After Multiple Loan Payment Defaults

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.

By January 6, despite the initial payments, Madwell and the other defendants still owed over $4.1 million, consisting primarily of $3.64 million in principal, plus various interest charges, late fees, and nearly $157,000 in attorneys’ fees. Interest continues to pile up at about $1,385 per day, court documents indicate. 

Bank of America is now imploring the court to enter a judgment and allow it to seize collateral to secure the loans. 

In a statement, Sojka blamed previous executives for Madwell’s debt, and said that “…Madwell has continued to service this debt, making over $2 million in payments and counting. Bank of America has continued to reserve its rights to take action while kindly affording Madwell breathing room to complete a turnaround. We are grateful for their support and professionalism in this trying time and are looking forward to reaching an amicable conclusion for all parties.”

Bank of America declined a request for comment. Lawyers representing the bank at Chapman and Cutler did not respond to requests for comment.