BIMIZCI Releases March 2026 Letter to the Medallion Financial Board

On March 13, 2026, BIMIZCI Fund LLC wrote to the Medallion Financial Corp. Board of Directors to express concerns about the ongoing management of Medallion Bank and its parent company. The letter — signed by Stephen Hodges as President of ZimCal Asset Management LLC and Manager of BIMIZCI Fund, LLC — followed a March 2025 Section 220 demand for books and records that the Board refused to answer, and a series of prior letters on overlapping issues.

The letter sets out concerns across four areas: governance failures, including a board with 50% of directors serving since 2003 and no meaningful independent oversight of the Mursteins; excessive executive compensation, including $7.6 million paid to Andrew and Alvin Murstein in 2024 alone — among the highest cash compensation in MFIN's self-selected proxy peer group despite among the weakest performance; improper accounting, including unexplained goodwill valuations, inadequate loan loss provisions on persistently non-performing commercial loans, and continued consolidation of a taxi medallion business that meets the criteria of a discontinued operation; and a parent holding company that has functioned as a source of weakness to Medallion Bank rather than a contractual source of strength.

The letter closes with legal conclusions reached in consultation with experienced counsel: that MFIN's continued conduct may constitute ongoing violations of federal securities laws and of the May 2025 SEC injunction against the company and Andrew Murstein; that the Board's refusal to enforce its own executive compensation clawback policy may violate SEC proxy rules; and that the Mursteins' conduct may justify their removal as directors and officers under federal banking law and the Utah Code. BIMIZCI offered to meet with the Board to discuss the concerns and review the underlying data; the Board did not engage.

Stockholders are urged to read the letter alongside Medallion's public disclosures and to vote FOR Eric Kelly, John Kiernan, and Tim Shanahan on the BLUE universal proxy card before the June 9, 2026 Annual Meeting. Voting instructions are available at restoretheshine.com/vote.