A Sacramento resident is embroiled in a legal battle against a major national bank, accusing it of unfair competition and breach of contract that led to the collapse of his business. Tobias Maurice Scott filed a complaint on November 3, 2025, in the Superior Court of California, County of Sacramento, against Bank of America, N.A., alleging multiple violations including unlawful seizure of funds and breach of implied covenant.
The case centers around an incident from November 2, 2021, when Scott’s business account at Bank of America received $350,000 in federal aid through the Small Business Administration’s Economic Injury Disaster Loan program. The very next day, Bank of America executed a levy and seized $253,567.17 from this account without prior notice or opportunity for Scott to contest the action. This levy was based on a default judgment obtained by Spark Funding LLC in New York, which Scott claims he was never personally served with nor informed about by the bank.
Scott argues that Bank of America improperly applied New York law instead of California’s consumer protection laws during the garnishment process. He states that this oversight resulted in catastrophic financial damage: his notary signing agency was forced to close immediately due to lack of operating capital. The complaint highlights how Scott’s monthly income plummeted from approximately $25,000 to zero overnight.
Despite efforts to resolve the situation—including demand letters and complaints filed with regulatory bodies—Bank of America’s responses were dismissive. A pivotal moment came when the Consumer Financial Protection Bureau (CFPB) issued a Consent Order against Bank of America for similar practices affecting thousands across various states. The CFPB found that the bank systematically failed to apply state-specific consumer protections during out-of-state garnishments.
Scott seeks restitution for damages exceeding $35,000 as well as injunctive relief to prevent further unlawful practices by Bank of America. His claims include violation under California’s Unfair Competition Law (Business & Professions Code §17200), breach of written contract, breach of implied covenant of good faith and fair dealing, and requests declaratory relief.
Representing Scott is attorney James L. Arrasmith from The Law Offices of James L. Arrasmith based in Fair Oaks, CA. The case is being overseen by Judge B. Delira under Case No.: # HB SSS.
Source: 25CV026353_Tobias_Maurice_v_Bank_of_America _Complaint_County_of_Sacramento_California.pdf
