How Terrie Lloyd cheated us

In September 2007, while we were in the final negotiations for the sale of Metropolis magazine, Terrie Lloyd (テリー・ロイド) asked us for a favor.

“Listen guys, it would really help me raise more funds to secure the business if you didn’t register the lien now”

Terrie Lloyd, his wife Kumiko Lloyd and Terrie’s business partner David Wells had already all signed a Guarantee Agreement, promising to give us property in Shibuya and other assets if they defaulted on the final payment of ¥160 million. However, to make sure the collateral was secured we needed to register a lien on the property with Japan’s Legal Affairs Bureau. That was when Terrie Lloyd made his request to delay the registration. Wanting to help him as much as we could, we agreed not to register the lien until after he had raised more money. After consulting with our lawyer, we added some conditions to the Guarantee Agreement, bringing forward the lien registrations if the value of the land went below a certain amount.

The reason Terrie Lloyd did not want us to register the lien is obvious now. Terrie Lloyd and his wife had already agreed to remortgage the land to Shinsei Bank. They signed a Guarantee Agreement with us for property that they had already signed away to the bank. Then within two weeks of signing an agreement with us for the same property, they remortgaged the property and took all of the value out of it. By the time we found out about this, three years later, the money was long gone.

In 2015, Terrie Lloyd tried to claim that it was he who did not want to register the lien. He said he refused to do so because his wife Kumiko Lloyd did not want to use the house as collateral, and also claimed that Kumiko did not sign the Guarantee Agreement. These lies are easily disproved. Firstly, we have Kumiko Lloyd’s signed Guarantee Agreement, complete with her New Zealand fax number, where she was living at the time. This means that she did accept that the house would be used as collateral, which means that Terrie Lloyd’s reason for refusing to register the lien is false. Also, if, just after signing the Guarantee Agreement, Terrie Lloyd had said to us that he wouldn’t sign the lien, we would have immediately become suspicious. Instead he abused two positions of trust with us: as an advisor, and as a friend, to deprive us of the money and property that he promised to us.

Related:

Terrie Lloyd Metropolis Default

How Terrie Lloyd Hid His Assets