A crane manufacturer in Texas says he’s under investigation by the Internal Revenue Service because he was able to file a loan with a bank to buy a construction crane, a practice known as “repayment.”
The company, which bills itself as “the world’s leading crane builder,” has filed more than 1,000 repayment requests for loans totaling more than $1.5 million, according to a federal complaint filed last week in a Texas federal court.
The IRS has been investigating whether the company was using the loan for personal gain.
A spokesman for the agency, Michael McKeon, declined to comment.
The complaint said the company is based in Texas but has offices in Virginia, Illinois and Florida.
It said the loan was not properly executed by the company and it “will not honor the loan unless there is proof that the loan has been paid.”
It said there are more than 7,000 loans outstanding in the United States and that the company has received about $1 million from them.
The loan was supposed to have been paid off within six months, but in the past year the company did not pay the balance.
The company was founded in 2013 by Richard Hoffman and a former member of his family, according the complaint.
The former Hoffman said the debt was not an issue at the time of the loan because the company’s debt-to-income ratio is at a record low.
In the past, Hoffman has used his own money to finance the company, the complaint said.
The Federal Trade Commission has also been investigating Hoffman, the company said in a statement.
The FTC does not investigate complaints involving consumer complaints.