Armando Fong Najarro and Compania Financiera Libano, S.A. v. Sasi International, Ltd., and Suzanne Frame

JERRY E. SMITH, Circuit Judge:

Plaintiffs Armando Fong Najarro and Compañía Financiera Líbano, S.A. (CFL), advanced funds to defendants SASI International, Ltd. (SASI), and its primary shareholder, Suzanne Frame, who ran a “gray market” perfume importing business. The agreement included a commitment by Frame and her company to pay, in addition to the principal, so-called “commissions” equal to a 25% annual return on the principal. When defendants failed to pay on six of the promissory notes, plaintiffs sued for $500,000, the face amount of the notes.

After first unsuccessfully claiming lack of…