Asher and KBM have done hundreds of loans with many companies. I've found several of them that were paid off early and in each case the profits they received were well beyond the 25% maximum per annum allowed under New York criminal usuary laws although much of it is disguised as prepayment penalties. Of course although I can't tell how much profit they actually made on the notes they converted after 6 months I'm sure they made even higher profit margins.

What I haven't found is a single note where the Kramers made under the 25% maximum which is the point where the loans become criminally usuarious.

Substance Over Form

Attempts to disguise interest may put a loan in jeopardy. In order to determine whether a transaction is usurious, courts look not to its form but to its substance or real character. Warrants, success fees, consulting fees and other fees may be appropriate, but if used to disguise interest, lenders may be inviting trouble.