Black Entrepreneur Sues Bank Over Fraud Allegations That Collapsed Her Auto Business

Pennsylvania entrepreneur Tianna Williams has filed a civil lawsuit against M&T Bank, claiming that an “overzealous and racist” bank investigator destroyed her thriving car dealership business through false fraud allegations. The lawsuit, filed in the Philadelphia County Court of Common Pleas, details how Williams’ business collapsed after the bank froze her account and allegedly contacted her lenders with unsubstantiated claims of fraudulent activity.

Williams, who built her business after dropping out of high school, specialized in purchasing vehicles at low prices, refurbishing them, and selling them to working-class customers with limited or poor credit histories. By March 2023, her business had achieved remarkable success, reaching $1 million in sales.

According to court documents, Shazard Mohammed, a local M&T Bank branch manager, approached Williams offering support for her growing business and encouraged her to apply for a line of credit. Williams subsequently opened an online account with M&T Bank, met with Mohammed, deposited $35,000, and applied for a $100,000 credit line.

Days later, Williams discovered her account had been frozen without explanation. When she inquired about the situation, Mohammed reportedly informed her that her credit application remained in process but provided no explanation for the account freeze.

Williams later learned that Hannah Gmeinder, a bank investigator, had initiated a fraud investigation based on suspicions about Williams’ initial deposit. More damaging still, Gmeinder allegedly contacted two commercial auto lenders that Williams worked with, telling them she “had engaged in wrongful and illegitimate business practices” without providing evidence to support these claims.

The lawsuit states that the bank took over a month to determine no fraud had occurred before finally restoring Williams’ access to her account. By then, the damage was done. Both commercial lenders had terminated their business relationships with Williams, causing what she describes as “a complete devastation of her professional reputation” and a near-total loss of revenue.

“I would be a franchise by now. I was getting very popular in the automotive business,” Williams stated, reflecting on what might have been. “The amount of money I would have made, with the new credit line and difference in the interest rate, I would have sped into the franchise world.”

The lawsuit contains allegations of racial prejudice. Williams claims that when she questioned Gmeinder about the investigation, the investigator responded, “You people have a way of trying to make things look legitimate when they are actually fraudulent.” When Williams asked for clarification about the “you people” remark, wondering if Gmeinder was referring to “salesmen, women, or Black people,” Gmeinder allegedly told Williams to stop contacting her and reportedly added, “Even if you are proven legitimate, I’m going to make sure I put you out of business.”

While M&T Bank has denied these claims, the lawsuit cites a March 29, 2023, email from Gmeinder to bank managers stating, “Doing my best to not let her win on my watch.”

The lawsuit accuses Mohammed and M&T Bank of fraudulent inducement, tortious interference with contractual relations, and negligent failure to train and supervise employees. “A promising future in an industry that Plaintiff worked to enter has been derailed for no reason other than spite, racism and self-righteousness of an overzealous and unrestrained fraud investigator,” the lawsuit alleges.

Williams’ attorney, Dean Malik, has indicated his client is open to settlement discussions. “I hope to make my client whole and achieve justice, one way or the other,” he said. “If I can do it by settlement, then that’s perfectly acceptable, but we’re ready, we’re perfectly confident in going to trial too, if that doesn’t work out.”

The case highlights ongoing concerns about racial bias in banking and financial services, an issue that has received increased scrutiny in recent years as more minority entrepreneurs report obstacles when seeking financial services and credit opportunities.