A tipster (send in your tips here) just brought this suit to my attention.Sharonetta Jones v. Morgan Drexen and Walter Ledda (2:11-cv-00542-GLF-TPK). It reminds of another similar lawsuit in Virginia.
The case in Ohio alleges Morgan Drexen and Walter Ledda violated the Debt Adjustment Companies Act, the Credit Services Organization Act, Credit Repair Organizations Act, and Ohio Consumer Sales Practices Act.
From the case:
“Among the most recent conspiracies, this action arises from a coordinated scheme devised by Defendants with the express intent of duping creditors and consumers into contracting with and believing that a licensed attorney was providing debt settlement services when, in fact, non-attorney employees of Defendant Morgan Drexen performed such “legal” services.”
“The services set out in the debt reduction agreement are recited for the purpose of creating an illusion that the debt settlement and credit repair services constitute the practice of law or are being performed incidential to the practice of law.”
Defandants made various misrepresentations or non-disclosures in an effort to induce Plaintiff to enter into the illegal agreement, including but not limited to:
- Unsubstantiated claims of savings.
- Deceptive representations about the length of time necessary to complete the program.
- Misleading the consumer about continued collection activity.
- Deceptively disparaged bankruptcy as a viable alternative.
- Savings claims not based on original account balance.
- Failed to include fees in savings claims.
- Mislead the consumer that an attorney would negotiate and settle the debt. – Source
This case was filed by:
Luftman, Heck & Associates
580 East Rich Street
Columbus, OH 43215
Morgan Drexen and Walter Ledda, Sued in Ohio by Steve Rhode
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