Businessman Whose Firm Failed Sues California First Bank Over Loan Request

A Huntington Beach man has filed a lawsuit accusing California First Bank and a former branch manager of stalling approval of a promised loan and causing his firm to fail.

William Tsumpes Sr. claims in his suit, filed in Orange County Superior Court, that the bank continually reassured him that he would get the loan but failed to act on the application, causing his Circa Management Systems Inc. to lose a multimillion-dollar contract.

Although the suit does not specify damages sought, a representative of Tsumpes’ law firm said the suit will seek $10 million.

A bank spokesman said neither the bank nor the former manager, William Mazza, would comment on the suit. Mazza, who managed the bank’s Huntington Beach branch, now works at the bank’s regional headquarters in Los Angeles.

Circa had won a contract from Star-Kist Foods Inc. in Long Beach to computerize its automated tuna canning operation at a plant in Puerto Rico. Circa expected to receive $10 million to $30 million in revenue from the contract.

To get started in Puerto Rico with 11 employees, Tsumpes sought a $250,000 loan from California First, where he had been conducting personal and business banking since 1982. After the first few months, payments from Star-Kist would have provided operating income, Tsumpes said in an interview.

The bank, after reviewing documents, the suit alleges, increased the amount under consideration to $315,000 to handle what the bank perceived as a need for more funds. Although Mazza repeatedly assured Tsumpes with phrases such as, “You’ve got it, don’t worry,” and “It’s in the bag,” the loan was never acted upon, Tsumpes contends.

After granting Circa one extension, Star-Kist canceled the contract, the suit says.

“I had used all our capital and was out of money,” Tsumpes said in the interview.

Tsumpes said he now is operating his business himself out of his garage and is trying to raise capital to market one of his products.