Sparta Commercial Services, Alleging Fraud, Sues DZ Bank

           Sparta Commercial Services, Alleging Fraud, Sues DZ Bank

PR Newswire

NEW YORK, Jan. 23, 2013

NEW YORK, Jan. 23, 2013 /PRNewswire/ --Sparta Commercial Services, Inc.
(OTCBB:SRCO) today announced that it has initiated a lawsuit in the United
States District Court for the Southern District of New York against the New
York branch of DZ Bank, one of the largest banks in Germany.

The claims alleged against DZ Bank relate to a $25 million revolving credit
facility issued to Sparta by DZ Bank to support Sparta's business of financing
and leasing motorcycles and other powersports vehicles. Among other claims,
Sparta seeks damages of $84 million for DZ Bank's fraud and breach of its
fiduciary duties.

Anthony Havens, CEO of Sparta, said: "DZ Bank contracted with Sparta for the
exclusive rights to provide Sparta with a $25 million credit facility for
which we paid DZ Bank substantial six figure fees, and trusting the truth of
what DZ Bank told us, we incurred substantial costs and losses which we seek
to recover in this lawsuit, having learned that DZ Bank had its own,
undisclosed internal issues, and misled us as to its intentions with regard to
the credit facility."

As the lawsuit was only recently commenced, the ultimate disposition of the
lawsuit cannot now be determined. Sparta makes no representation about the
potential outcome of the lawsuit and there may be substantial costs incurred
as a result of the prosecution of the lawsuit.

About Sparta Commercial Services, Inc.

Sparta Commercial Services, Inc. is a New York-based technology company that
has roots in the powersports industry where it had originally focused
primarily on providing consumer and municipal financing to powersports,
recreation, and auto industries. Through its subsidiary, Specialty Reports,
Inc., the Company offers a range of online tools and products that include a
Mobile App product for Powersports, Recreational Vehicle, Watercraft, and Auto
dealers, that allows the dealers to manage their own custom dealer mobile
applications that are made available on multiple platforms such as iPhone,
iPod Touch, iPad, Android Mobile, Android Tablet and Kindle Fire, giving
consumers access to the dealerships' inventory, sales and service departments,
hours, locations, special events and more (www.specialtymobileapps.com);
Cyclechex, providing Motorcycle History Reports (www.cyclechex.com); RVChecks
providing Recreational Vehicle History Reports (www.rvchecks.com); and
CarVINreport, providing Automobile and Light Truck History Reports
(www.carvinreport.com). All of the vehicle history reports cited above are
designed for consumers and retail dealers as well as for auction houses,
insurance companies and banks/finance companies. Sparta continues to
administer an ever-growing Municipal Leasing Program for local and/or state
agencies throughout the country seeking a better and more economical way to
finance their essential equipment needs, from police motorcycles and cruisers,
to EMS equipment and busses, to virtually any type of equipment required.
Sparta is an innovative and diversified Company dedicated to identifying the
needs and interests of its targeted markets, and developing products and
services specifically designed to meet those needs and interests now, and well
into the future.

Contact:

Sandra L. Ahman
Corporate Secretary
Sparta Commercial Services, Inc.
sandy@spartacommercial.com

Forward-Looking Statements

This news release contains forward-looking information within the meaning of
federal securities regulations. These forward-looking statements include
statements related to the possible outcome of this case or any other
litigation. These forward-looking statements involve risks and uncertainties,
including those described from time to time in the Company's filings with the
Securities and Exchange Commission (SEC) that could cause the actual results
to differ materially from those anticipated by these forward-looking
statements. In particular, the ultimate outcome of this case or any litigation
is always uncertain and may differ materially from what is currently
anticipated. The Company assumes no obligation to update any forward-looking
information contained in this press release.

SOURCE Sparta Commercial Services, Inc.
 
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