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Sued or Sanctioned

Mass Joinder Raids and a Review of the Lawsuits Against Lawyers and Marketers

Mass Joinder

Yesterday a number of law enforcement officials raided offices of lawyers and marketing participants who have been involved in mass joinder efforts. Consumers were sold access to lawsuits with a number of claims against their lenders and were told they could get their homes free and clear, cash back, stop foreclosure, etc. These efforts were pushed by marketers that took ... Read More »

Tom Roland and Enhanced Servicing Solutions Slamed With Half Million Dollar Civil Fine.

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Colorado Attorney General John Suthers announced yesterday that his office has obtained a $590,000 judgment against Orlando, Fla.-based Enhanced Servicing Solutions after the company engaged in unregistered debt management services for Colorado consumers. The judgment, which comprises $504,000 in civil fines and $90,000 in consumer restitution, followed a June complaint against the company and its president, Thomas Roland. The judgment ... Read More »

Morgan Drexen Complaints Stuck in Court

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Morgan Drexen appeard in court in Virginia on this past Tuesday in an effort to get this lawsuit tossed out. See: Morgan Drexen Sued in Virginia. Called Parasitic. Allegedly Violated Credit Counseling Act Morgan Drexen Virginia Lawsuit Update On Tuesday, Morgan Drexen appeared in court and asked to have the suit dismissed. In a hearing that lasted 27 minutes the ... Read More »

Legal Helpers Debt Resolution Hit With Cease and Desist Order

Legal Helpers Debt Resolution Does Not Get a Free Pass

Legal Helpers Debt Resolution was hit with a $314,000 fine today and issued a cease and desist letter to immediately stop its unlicensed debt adjustment business in Illinois. The State of Illinois found that LHDR cannot avail itself of an exception as attorneys under the Illinois debt settlement laws. The cease and desist letter was issued by the Illinois Department ... Read More »

Clint Johnson Suspended by Bar. Receiver Appointed. Impacts, Johnson Law Group, Debtwave, CBDC.

A tipster (send in your tips here) has just sent in documents which show that the State of Florida has not reinstated attorney Clint Johnson. His licensed remains suspended and Leslie Eiserman, CPA was appointed as receiver on July 14, 2011. This may have a significant impact for debt settlement clients that were working with Johnson law Group in Florida ... Read More »

Steven Vanderhoof Defaults on Settlement for Credit Exchange

A tipster (send in your tips here) has just alerted me that Steven Vanderhoof, of The Credit Exchange fame, was just recently sued for non-payment of a settlement agreed to in the Hess Kennedy bankruptcy. Vanderhoof’s lead generation company was sued by the receiver in the Hess Kennedy bankruptcy to claw back money paid for marketing services. Under the terms ... Read More »

Fresh Start and Crew Named Hard in GA Class Action Suit

A class action suit has just been moved to federal court in Georgia. The suit is Davenport v. Fresh Start Advisors, Fresh Start Advisors of Boca Raton East, Fresh Start Advisors of Boca Raton West, Fresh Start Advisors of Lauderhill, Fresh Start Solutions, Settlement Management, WPB Partners, Flow Capital Ventures, Debt Settlement Solutions, National Settlement Solutions, Discount Debt, jason Simons, ... Read More »

Debt Relief USA Owners to Personally Pay Millions in Court Award

I don’t think the former corporate directors of Debt Relief USA will soon forget July 15, 2011. On that day a State of Washington court awarded a class action award of $1.5 million against the directors of a now defunct and bankrupt debt settlement company. James Wojcik, Kelly Reilly, and Alvin Bell will have to personally pony up this big ... Read More »

American Debt Services, Quality Support Services, Global Client Solutions in California Class Action

On June 29, 2011 a class action case in California was filed against American Debt Services, Quality Support Services, Global Client Solutions, and Rocky Mountain Bank & Trust. The case alleges a now common scheme of evading state state laws regarding debt adjusters or proraters. The complaint says that California consumers were induced by promises provided by American Debt Services ... Read More »

Mortgage Elimination Program Lands Debt Relief Provider in Jail for 12 Years

Linda Sadr, 52, of Manassas, Va., was sentenced a couple of weeks ago to 144 months in prison, followed by three years of supervised release, for her role in a “mortgage elimination” scheme that caused more than $11 million in losses. Sadr was charged with two counts of mail fraud, three counts of wire fraud, and two counts of unlawful ... Read More »

Tax Defense Network Former VP – Mugshot

Dwayne Harmon

A tipster (send in your tips here) is checking in today with an update regarding the Tax Defense Network that I previously wrote about in Tax Defense Network and Interesting Past Worth Knowing. According to news reports, Dwayne Harmon, 42, former Vice President of Marketing for Jacksonville-based Tax Defense Network, was charged with four felonies: organized fraud of $50,000 or ... Read More »

EFA Processing, New Leaf Debt, Neil Ruther and Consumer Law Associates Sued in Kansas

Thanks to great readers and tipster (send in your tips here)s I just found out about Hays v. Consumer Law Associates, Neil Ruther, New Leaf Debt and EFA Processing. The suit goes after the defendants for violations of the Kansas Credit Services Organization Act, Kansas Consumer Protection Act, and conspiracy. The suit alleges the following facts. On September 23, 2009, ... Read More »

Lloyd Ward, Lloyd Ward & Associates, Debt RX USA, and Silverleaf Debt Solutions Hit With Employee Suit

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On June 13, 2011 Sabrina Bermudez filed suit against Lloyd Ward, Lloyd Ward & Associates, Debt RX USA, and Silverleaf Debt Solutions. The class action suit alleges the defendants did not pay proper wages for time worked. The suit alleges the following facts. Defendants specialize in selling and/or providing a variety of debt solution products and services, including debt settlement ... Read More »

Global Client Solutions, Clear Your Debt, Orion Processing, Derin Scott, Shannon Scott and Pradeep Nair Hit With Lawsuit

On June 17, 2011 the following case was filed, Jalenna Bowie v. Clear Your Debt, Global Client Solutions, Orion Processing, Derin Scott, Shannon Scott, and Pradeep Nair. The case goes after the debt relief providers for violating the Credit Repair Organizations Act, violations of the Ohio debt adjusting statutes, violation of the Ohio Consumer Sales Practices Act, violation of the ... Read More »

Allegro Law Still Suing AmeriCorp, Seton and Tim McCallan

A tipster (send in your tips here) sent in information with an update to the lawsuit resulting from the Allegro Law bankruptcy filing. For those who might not know, Allegro Law was an attorney model debt settlement company where the lawyers was disbarred and the firm filed a Chapter 7 bankruptcy petition. This suit was filed by the Chapter 7 ... Read More »

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