Jags Krishnan speaks to reporters outside his electorate office on Thursday. ( ABC News: Keane Bourke )
WA Labor MP Jags Krishnan says he will "vigorously" defend a US lawsuit over an unpaid loan of almost $1 million.
Dr Krishnan has engaged Perth legal heavyweight Martin Bennett to defend his case and sue for defamation in the WA Supreme Court.
WA Premier Roger Cook said he was first made aware of the "specifics" of the dispute in the past week and would not comment.
A Western Australian MP embroiled in a legal dispute over a million-dollar loan in the United States insists everything he did was above board.
Jags Krishnan has been the Labor member for the southern suburbs seat of Riverton since 2021.
The Nine network yesterday revealed he had been named in a lawsuit in the New Jersey District Court.
In a court document, seen by the ABC, Kenyan Consulting LLC is suing Dr Krishnan, his wife and three companies for breach of contract and unjust enrichment over an alleged failure to pay back a $US655,000 ($930,500) loan plus interest.
Dr Krishnan has engaged Perth legal heavyweight Martin Bennett to defend his case.
Dr Krishnan has engaged the services of Perth legal heavyweight Martin Bennett. ( ABC News: Keane Bourke )
Dr Krishnan said he would also be suing a representative of Kenyan Consulting and another person for defamation.
Mr Bennett said he represented both Dr Krishnan and his wife, and that both would fully defend the case.
"I'll vigorously defend my position in court," Dr Krishnan told reporters on Thursday afternoon, reading from a prepared statement.
"I understand there's interest in this matter, but given it's now before the courts, it wouldn't be appropriate for me to go into details or comment on the claims.
"I am confident I have acted appropriately, and it's important we allow the legal action to run its course."
According to the court document, the American company said Dr Krishnan reached out to a representative through a mutual friend in May 2024 and "urgently requested short-term financial support" in the form of a $US250,000 loan.
The money was paid to Codd Technologies, according to the document.
Dr Krishnan's wife, Yaamini Jagadish, is currently the sole director of that company.
"[Dr Krishnan] expressly promised that the funds would be repaid upon the successful completion of his fundraising efforts in the United States," the writ reads.
Dr Krishnan says he will defend the allegations. ( ABC News: Keane Bourke )
Once Dr Krishnan was in the US, the case alleges, the Kenyan Consulting representative arranged a limousine for the MP to "pitch" a separate business, Spectrum Health, for investment.
Later, at a meeting at the representative’s home — according to the writ — Dr Krishnan said he was in "dire need of immediate funding", which led to an extra $US405,000 being loaned.
In Kenyan Consulting’s view, it was agreed the total loaned amount would be paid back within a year.
Dr Krishnan’s lawyer disputes this allegation, claiming the agreement was that the loan was to be repaid over nine years.
Kenyan Consulting's case alleges it eventually recalled the entire loan in January 2026, saying it had "lost confidence in [Dr] Krishnan's willingness and ability" to resolve the dispute and demanded payment within 30 days.
The writ states Dr Krishnan replied the same month to say the loan would be repaid "at the earliest possible time", but the American company claims no money has been received.
Dr Krishnan was named in the suit in the New Jersey District Court. ( ABC News: Keane Bourke )
The company claimed it was not until October 2026 that it was aware of Dr Krishnan's claim that the money would be repaid over nine years.
Asked whether it was appropriate to be engaged in business dealings while a sitting MP, Dr Krishnan said: "I was not actively engaged in any business dealings; I was assisting my wife."
A staffer physically pulled Dr Krishnan back into his office as a journalist continued to ask questions.
Premier Roger Cook said he was first made aware of the "specifics" of the dispute in the past week.
"I understand that this is a legal situation that [Dr Krishnan] is engaged in and I won't comment in relation to that court action," he said.
