The U.S. District Court in Newport News, Virginia, found that the bank may recover principal, interest and court fees from Vick, who borrowed $2.5 million in January 2007 shortly before losing his job with the Atlanta Falcons and being sent to federal prison.
The Toronto-based bank said that Vick, who is serving a 23- month sentence at the U.S. Penitentiary in Leavenworth, Kansas, lowered his income and broke the loan's terms after pleading guilty last year to conspiring to run a dogfight operation.
``The criminal charges and resulting impact on the defendant's employment constitute a material adverse change in the employment, performance, condition (financial or otherwise) or prospects of the defendant which materially affect his ability to repay the term note,'' the bank said in its complaint.
The NFL suspended Vick without pay in August after he agreed to plead guilty, and sponsors including Nike Inc. suspended sales of Vick merchandise. The Falcons also tried to recover about $20 million in bonuses paid to Vick, before a federal judge ruled on Feb. 4 that the quarterback was entitled to keep all but $3.75 million.
Yesterday's ruling from U.S. Magistrate Judge F. Bradford Stillman also requires Vick to pay $499 in interest for every day since Sept. 19, 2007, and court costs of $11,950.97.
The case is Royal Ban of Canada vs. Michael Dwayne Vick, 4:07cv92, in U.S. District Court for the Eastern District of Virginia (Newport News). (source Bloomberg News)