Sued or Sanctioned

Attorney Richard Mossler Suspended for 6 Months for Debt Relief Activities With Lexxiom

Written by Steve Rhode

Another attorney has run into trouble for their involvement in debt relief activities. This time is was Richard Mossler. Mossler has appeared in other articles in the past. Click here.

According to Indiana Supreme Court documents sent in by a reader, On December 6, 2017 the Court said, “We find that Respondent, Richard Mossler, engaged in attorney misconduct arising from his professional relationship with an out-of-state corporation. For this misconduct, we conclude that Respondent should be suspended from the practice of law in this state for at least six months without automatic reinstatement.”

Public records also name a company named Lexxiom.

Here is what the Indiana Supreme Court had to say.

“Since 2008, Respondent’s practice has been dedicated almost exclusively to consumer debt resolution. During that time, Respondent has been affiliated with Lexxiom, Inc., a Nevada corporation with headquarters in California. Functions performed by Lexxiom for Respondent have included marketing, client intake, bookkeeping, administration of banking transactions, and communications with clients and debt collectors.

Nonlawyer personnel at Lexxiom would interview potential clients and then forward the information to Respondent, who could accept or reject the client. Under Respondent’s standard engagement contract with clients, Respondent would provide non-litigation legal services and litigation consultation for an initial flat fee (usually 8-10% of the amount of debt the client was seeking to resolve) plus monthly maintenance and settlement accumulation fees. Clients also had the option to engage Respondent separately to provide litigation services. After the client and Respondent executed an engagement contract, Lexxiom would notify creditors of Respondent’s representation and would undertake communication to negotiate settlements with the creditors.

For those clients not domiciled in Indiana who had a legal claim or defense, Respondent employed attorneys in other states to provide as-needed, state-specific legal counsel to Respondent’s clients. Respondent paid those attorneys, who were not associated with Respondent’s firm, a monthly retainer.

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In connection with his relationship with Lexxiom, Respondent opened a trust account in California. Respondent failed to certify this trust account with the Clerk of the Indiana Supreme Court. Respondent was not a signatory on the account; rather, the only signatories were two nonlawyer corporate executives of Lexxiom. Clients authorized Lexxiom to withdraw agreed attorney fees from their funds held in trust and also to withdraw settlement accumulation fees once sufficient savings had accumulated to negotiate debts. Because of the large number of clients with funds in the trust account and the high volume of daily transactions, withdrawals from and deposits into the trust account were made by Lexxiom on a “batch” basis whereby a single transaction into and out of the trust account would involve multiple clients.

As a result of errors by Lexxiom personnel, Respondent’s trust account was overdrawn on at least three occasions in December 2015. Due to the batching system used by Lexxiom and his own lack of oversight, Respondent did not immediately realize that his trust account had gone out of balance. After Respondent was alerted to the problem, he engaged an independent accounting firm to reconcile the balance and replenished the funds that mistakenly had been withdrawn from the trust account by Lexxiom.

Respondent did not adequately supervise the client intake, debt settlement, or trust account administration services performed by nonlawyer personnel at Lexxiom.” – Source

About the author

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.


  • Mossler and Lexxiom scammed me. Paid them about 14000 and they only settled two for about 3000. When notified of his retirement, I terminated the contract. They sent me a refund check which I deposited and then it was returned for insufficient funds. Apparently, they’ve done this more than once. Why have they not been prosecuted?

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