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Monalee Rebrands as Artemis and Raises $6 Million amid ongoing litigation following loan default. Lender Alleges Concealed Bank Accounts, Misrepresentations, Diversion of Secured Collateral, and Fraudulent Transfers Involving Artemis CEO Walid Halty The issues raised in the litigation have broad implications for private credit investors that rely on Deposit Account Control Agreements ("DACAs") at banks to protect pledged cash collateral." BOSTON, MA, UNITED STATES, May 7, 2026 /EINPresswire.com/ - Applied Real Intelligence ("A.R.I."), a private investment firm specializing in secured growth lending and structured equity transactions, has filed lawsuits in New York and Massachusetts against Mona Lee Inc. ("Monalee"), now doing business as "Artemis," following the company's default under a senior secured credit facility. The New York action currently involves claims against Artemis only, while the Massachusetts action also asserts claims against Artemis CEO Walid Halty individually and Artemis' banking institution. The verified complaints allege that Artemis - under the direction of CEO Walid Halty - engaged in actions that concealed collateral and interfered with the lender's rights under a credit facility secured by a first-priority perfected security interest in substantially all assets of the borrower and its subsidiaries. Artemis defaulted on its loan obligations in September 2025 by failing to make required payments of principal and interest under the secured credit facility, along with ongoing covenant breaches. Following these events of default, the lender accelerated the loan and demanded immediate repayment. After Artemis failed to satisfy its obligations, the lender initiated legal proceedings in New York and Massachusetts in October 2025 to enforce its contractual rights and recover all amounts owed. The litigation comes amid the borrower's recently announced $6 million venture capital financing and corporate rebranding to "Artemis," while the company remained in default under the secured loan agreement, with principal, interest, and other amounts outstanding. KEY ALLEGATIONS IN THE VERIFIED COMPLAINTS The complaints assert multiple causes of action arising from the alleged default and concealment, transfer, and dissipation of pledged collateral, including breach of contract, interference with secured collateral rights, breach of the implied covenant of good faith and fair dealing, unfair and deceptive trade practices, unjust enrichment, and fraudulent conveyance, among others. The Massachusetts action also includes claims against Artemis CEO Walid Halty individually. The New York complaint also seeks remedies including foreclosure on collateral and the appointment of a receiver to preserve and protect company assets pending resolution of the litigation. Allegations contained in the verified complaints and sworn filings include the following: 1. Artemis and CEO Walid Halty concealed the existence of multiple bank accounts from its secured lender, despite loan documents requiring that all company bank accounts be disclosed to the lender and subject to the lender's control. 2. Despite maintaining undisclosed accounts, CEO Walid Halty repeatedly misrepresented to the secured lender that no such accounts existed and that Artemis remained in covenant compliance. 3. Cash pledged as collateral under the loan agreement was transferred into undisclosed accounts in violation of the secured account structure required under the credit agreement. 4. After the lender exercised its contractual rights to take control of the secured account, funds were transferred out of the account and into other Artemis bank accounts outside the lender's control. 5. Artemis CEO Walid Halty provided documentation to the lender showing cash balances of millions of dollars in the secured account even as those funds were being transferred elsewhere. 6. Funds were transferred to insider-controlled entities in transactions constituting fraudulent conveyances, including transfers made while Artemis was insolvent or became insolvent as a result of those transfers. 7. Despite acknowledging the lender's right to repayment and maintaining millions of dollars in cash reserves outside the required collateral structure, Artemis, under Halty's direction, refused to repay the loan obligations after they were accelerated. 8. By transferring pledged funds outside the secured account structure required under the loan agreement, Artemis prevented the lender from exercising its contractual collateral rights. 9. Artemis' conduct required the lender to seek emergency relief from the court, including filing a temporary restraining order and seeking the appointment of a receiver to preserve, protect, operate, and/or liquidate the collateral and prevent dissipation or diversion of company assets. 10. The actions described in the complaints were directed and carried out by Artemis CEO Walid Halty, who controlled the company's financial decisions. LITIGATION REFERENCES The lawsuits referenced herein include A.R.I. Agent, LLC et al. v. Mona Lee Inc. et al., pending in the Supreme Court of the State of New York, County of New York (Index No. 659237/2025), and A.R.I. Agent, LLC et al. v. Mona Lee Inc. et al., pending in the Commonwealth of Massachusetts, Superior Court Department, Suffolk County (Civil Action No. 2584CV03003). Copies of the verified complaints and related court filings are publicly available through the respective court systems, where the actions remain pending. PRIVATE CREDIT AND SECURED LENDING MARKET IMPLICATIONS The conduct described in the complaints underscores the importance of safeguards designed to protect secured lenders and preserve collateral in the private credit markets, particularly where lenders utilize controlled account structures and bank-administered collateral control arrangements to maintain the integrity, availability, and control of pledged assets. The issues raised in the litigation have broad implications for private credit market participants that rely on collateral control mechanisms, including Deposit Account Control Agreements ("DACAs") at banks, to protect pledged assets and enforce secured credit arrangements. If secured lenders cannot rely on contractual collateral-control arrangements to preserve and recover pledged assets following a default, significant losses may ultimately be borne by the underlying investors in private credit funds and other institutional investment vehicles. ARTEMIS ANNOUNCES $6 MILLION VENTURE FINANCING AND REBRAND AMID ONGOING LITIGATION On March 4, 2026, the company publicly announced a $6 million venture capital financing while simultaneously rebranding from Monalee to "Artemis." The announcement was distributed through PR Newswire under the headline, "Monalee Rebrands as Artemis and Raises $6 Million to Launch the Operating System for Distributed Energy." According to the announcement from Artemis, the financing round was led by venture investors and included participation from additional institutional and venture capital firms. The fundraising announcement was made while the company remained in default under its secured credit facility and was engaged in ongoing litigation with its senior secured lender in multiple jurisdictions. A.R.I. Investor and Media Relations Applied Real Intelligence ("A.R.I.") +1 310-881-3893 email Afv News here Legal Disclaimer: EIN Presswire provides this news content "as is" without warranty of any kind. Afv News do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above. My name is Manuel Gutierrez, I have worked for the stock market industry for 4 years. Technology and Energy news grasp my attention the most. In early days, I started my journey with an ordinary author. Moving forward with great hard work and passion I achieve a higher position. As I believe in working hard and putting the soul in my work, I have accomplished so much success and place in afvnews.ca, and now I have confidence in this, that I am the spin of this network. I have a vision of touching the sky. I wish to see this industry on a global scale one day. My other duties are that I am a contributor and an editor of the technology segment. My work is to do a critical analysis of companies and pick out the most significant information for investor network.

Artemis, formerly Monalee, has raised $6 million in a Series C round co-led by Long Journey Ventures and Copec WIND Ventures, with participation from Ludlow Ventures, Shrug Capital and others. The Houston-based startup is building an operating system for distributed energy that unifies AI-powered design, embedded financing and compliance automation. The platform reduces solar project cycle times from days to seconds, with customers reporting 72% lower software costs, 98% faster turnaround and conversion rates five times higher than legacy tools. Founded in 2019 as a solar installer, the company pivoted in 2024 to offer its internal software to the broader market. The funding will support product development, customer support expansion and go-to-market operations across the US and Latin America. Former Shell Ventures investor Alexander Urban has joined as chief financial officer.