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What is Going on With Lawsuit Against Freedom Financial and Alliance8? – Lori

“Dear Steve,

Is there any NEW information out there re: the status of the Class Action Law Suit against Freedom Financial (Alliance 8) debt consolidation? Its been almost a year now and I can’t find anything thats updated about the court status. There was a company, Insolvency (?) in Calif. that was letting clients know. I haven’t been getting a response back from the contact person there at all anymore. PLEASE HELP. we would really like our money back that these ripoff jerks took. I live in Wisconsin if that matters. Thank You.

Lori”

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The Answer

Dear Lori,

I think you are talking about the case that was originally filed in state court and then moved to Federal court on October 10, 2010.

That case was filed on behalf of people that were State of Washington residents. The case was actually filed against Freedom Fidelity Management, Freedom Financial Management, and named Alliance 8 as a party, in a later update. – Source

Additional entities or individuals were named in an amended complaint later filed on June 7, 2011. This complaint named Alliance8 and stated Alliance8 “is the parent company of its wholly owned subsidiary Freedom Fidelity Management.

The amended complaint provides some additional description of the defendants:

“Defendant Alliance8 Inc.: Defendant Alliance8 Inc. (“Alliance8”) is a Nevada corporation with headquarters at the same address as Defendant FF M, 1901 East Alton Avenue, Suite 240, Santa Ana, California. Alliance8 is the parent company of its wholly owned subsidiary FFM. Alliance8 purchased FFM on or about July 2010. FFM’s clients, including Class members, were informed by Alliance8 that they were now clients of Alliance8. Alliance8 continued to provide and service the same debt settlement contracts with consumers who entered into debt settlement contracts with FFM. Alliance8 and FFM’s business activities directed at consumers are such that they appear to be the same single business entity. Further, Alliance8 directly controls, manages, and oversees FFM, such that FFM is a mere instrumentality of Alliance8. The Director of Operations for FFM reports directly and regularly to the President of Alliance8. The officers of Alliance8 directly control the finances of FFM. Alliance8 and F FM have the same corporate officers and the same offices, which are located at the same business address. Alliance8 has attempted to maintain FFM as a separate entity for the purposes of evading its legal duties to Class members. Alliance8 is owned, operated and managed by Huy Nguyen, Johnny Vu, and Haiau Han aka Hyle Han. Nguyen, Vu, and Han also own, operate and manage American Credit Pros, Inc., a business purportedly engaged in consumer credit repair.

Defendant Jimmy G. Phan: Defendant Jimmy G. Phan (“Phan”) is a resident of California. Phan was the President, Director, and Owner of FFM from its inception in 2008 through July 2010. Phan has established and operated several debt settlement companies, including Freedom Fidelity Management and Beacon Debt Solutions, Inc. Phan has also established and operated numerous fictitious businesses including “PC Mortgage,” “Squall Development,” “Wizbang Network Solutions,” and “A Plus Tutor.” On information and belief, Phan designed, established, and implemented FFM’s debt settlement program, including the illegal fee provisions contained in FFM’s standard contracts with Washington consumers. From at least March 2008 to July 2010, Phan directed the business affairs of FFM and established, directed, and/or ratified the unlawful business practices alleged in this Complaint.

Defendant Huy Nguyen: Defendant Huy Nguyen (“Nguyen”) is a resident of California. Nguyen is the President and co-owner of Alliance8. On information and belief Nguyen oversees and manages the business operations and finances of FFM. Nguyen manages the daily operations of FF M by and through daily communication and reports from FFM’s Director of Operations. From July 20l0 to present, Nguyen directed the business affairs of FFM and established, directed, and/or ratified the unlawful business practices alleged in this Complaint.

Defendant Johnny Vu: Defendant Johnny Vu (“Vu”) is a resident of California. Vu is the Director and co-owner of Alliance8. On infomation and belief, the Director of Operations of FFM, the Chief Financial Officer of Alliance8, and the President of Alliance8, all report to Mr. Vu regarding the operations and management of FFM, including management of debt settlement contracts with Washington consumers. Vu oversees and manages the operations and finances of FFM. Prom July 2010 to present, Vu directed the business affairs of FFM and established, directed, and/or ratified the unlawful business practices alleged in this Complaint.

Defendant Haiau Han: Defendant Haiau Han (“Han”) aka Hyle Han is a resident of California. Han is the Chief Operating Officer, Secretary and co-owner of Alliance8. On information and belief, the Director of Operations of FFM, the Chief Financial Officer of Alliance8, and the President of Alliance8, all report to Mr. Han regarding the operations and management of FFM, including management of debt settlement contracts with Washington consumers. On information and belief, Han oversees and manages the operations and finances of FFM. From July 2010 to present, Han directed the business affairs of FFM and established, directed, and/or ratified the unlawful business practices alleged in this Complaint.” – Source

If this is the case you are referring to, it is still ongoing. For an update, please contact The Scott Law Group in Spokane, Washington at 509-455-3966.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

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Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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