Rapper Mack 10 Loses After Court No Show
Mr. Mack borrowed $35,000 from Tadayuki Ito back on April 24, 2010. Under the terms of the deal, Mack was required to pay Ito $70,000 by August 31, 2010 -- in other words, 100% interest for a 3-month loan. That squarely violates California law, which prohibits "usury" -- i.e., excessive interest on loans.
On April 28 -- 4 days after getting the first loan -- Mack borrowed $65,000 from Ito, and agreed to pay back $130,000 by September 30, 2010 -- again, squarely violating the usury law.
Under California law, a creditor who charges interest that violates the usury law is entitled to NO interest from the debtor.
But here's what happened. Ito sued Mack, and Mack did not show up in court. The judge entered a default judgment -- presumably after looking at the 2 contracts -- in the amount of $229,668.86 -- which includes the exorbitant paybacks, as well as additional interest and attorney's fees.
It's baffling the judge enforced what is clearly an illegal agreement. more on this story
TMZ submitted this story.