Tim McCallan was once a high flying force to be reconned with in the debt settlement and credit counseling worlds. But since 2009 when Allegro Law in Alabama started to unfold, the drama in his life has increased.
McCallan is still fighting actions in court regarding his past alleged debt relief companies, practices, and business.
Allegro Law filed for bankruptcy in 2010 when the advanced fee debt settlement lawyer and the company collapsed and filed for Chapter 7 bankruptcy protection.
On February 27, 2018, the bankruptcy trustee, in that case, filed a 70-page update regarding McCallan’s actions and why he has spent time in jail for not complying with court orders.
I admit it boggles my mind why McCallan continues to spend such a large amount of life energy to battle against a process for soon to be a decade. While McCallan wrote from jail, “I sit today in a jail cell to share my deepest thoughts in the hope that one day I will be able to be a contributing citizen in society by helping others attain their goals,” it appears the Trustee feels his actions are opposite to his expressions.
The Current Bankruptcy Trustee Point of View
The bankruptcy trustee in the Allegro Law case just filed this “proposed findings of fact and conclusions of law.”
“On February 16, 2016, after nearly 5 years of litigation, this Court entered a judgment against Defendant Timothy McCallan and defendants Americorp, Inc. and Seton Corp. in the amount of $102,949,220.72 for their role in “an extraordinary case of fraud on a massive scale that was perpetrated by Defendant Timothy McCallan…on thousands of victims.” (Doc. No. 361, page 2). On February 16, 2016, this Court also sanctioned McCallan $999,457.95 for discovery abuse committed during the merits portion of the underlying litigation. (Doc. No. 363). McCallan has not paid any portion of that sanction.
McCallan’s scheme involved using a Montgomery law firm, Allegro Law, LLC, as a front to induce victims to sign up for debt settlement or debt management services operated by McCallan’s companies Americorp, Inc., Seton Corp., and The Achievable, Inc. Victims were promised that they would be represented by an attorney who would negotiate a settlement of their debts for a fraction of what they owed. The defendants instructed victims to stop making payments to their creditors and instead to make payments to Americorp and Seton. Virtually all the money paid by the victims was siphoned off by McCallan and the other defendants, and the victims were then held to be in default on their debts – with nothing to show for the money they had paid to the defendants. This Court found in its order that the effect of the fraudulent debt settlement scheme on the victims was “personal economic suicide.” (Doc. No. 361, page 3).
This Court feels it appropriate to outline its findings on the underlying merits of this case, as they reveal an all too familiar pattern of discovery abuse by McCallan and his companies that is now being repeated in the post-judgment discovery process: (1) dumping large volumes of data on Plaintiff shortly before court hearings; (2) falsely representing that all responsive discovery has been produced; (3) refusing to acknowledge the existence of something before Plaintiff finds and specifically asks about it; (4) filing false affidavits; (5) providing false and incomplete answers to interrogatories; (6) producing selected information in piecemeal fashion; (7) escalating noncompliance to the point of contempt and arrest; (8) hiring new counsel and seeking delay; (9) blaming hurricanes for the inability to comply with court deadlines; and (10) falsely denying that any information is being hidden from the Plaintiff.
The contemptuous pattern of brazen discovery abuse during the merits portion of this litigation provides important context for how dismissively and impudently McCallan approaches his discovery obligations. This Court finds that McCallan remains in contempt for his failure to comply with this Court’s orders to fully and accurately answer post-judgment discovery and that he will remain incarcerated until he purges himself of contempt.
II. The Defendants Consciously And Deliberately Did Everything In Their Power To Thwart Every Effort Made By The Plaintiff To Obtain Critical Information About The Money Flowing Through The Allegro Law Program
After the March 12, 2010 filing of the Chapter 7 voluntary petitions for Allegro Law, LLC and Allegro Financial Services, LLC, (Case No. 10-30630, Doc. No. 1; Case No. 10-30631, Doc. No. 1), this Court sought an explanation from McCallan and the other defendants as to what had happened to the money paid by thousands of victims to McCallan and his companies through McCallan’s debt management scheme. Despite more than a half dozen orders, 3 evidentiary hearings, over 300 PACER filings, McCallan’s arrest for civil contempt for discovery abuse, and a full trial on the merits, McCallan steadfastly refused to provide any answer to that question.”
If you are interested in the full court filing, you can read that document here.
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11 thoughts on “Tim McCallan Court Update Paints a Strong Picture of This Former Debt Relief Leader”
I saw they are shutting down their money laundering store. Guess they washed all that loose cash in to Jeannie’s name
Not sure what store specifically you are talking about. No updates from my side and no big updates from the court docket.
I’ve extended multiple offers for Jeannie and Tim to submit and post their side of the story, which I would love to let them share the other side of this situation.
Regarding the store, it could just be that whatever the store is/was just isn’t viable anymore with the headwind battles they have been facing. Not sure.
Wendy Hopper Tims sister inlaw and former H.R. Person was married to an associate of Tims her husband Peter Hopper. The agency that created the accounts for the kids. Now, since late 2000 she is married to a Guy Gemore who owns Players Choice Tours in the Bronx. She follows the money trail. They all do at other expense. It’s sad.
Its ironic that prior to his trials his family members nieces nephews all paid for college and bought homes. I guess they can do a refi a few years later when the dust settles and give him him his $ back.
Let the legals check out a company named players choice in the Bronx. His brother in law guy Gemore, Ties to Aruba hotels.
is he still locked up? I got my popcorn ready, i need an update Steve!
According to recent court records, it appears McCallan is still incarcerated in the Montgomery County jail in Alabama but has asked to be released and allowed to be placed under house arrest in AL or FL. “Defendant McCallan hereby motions this Court for an order transferring him from his civil contempt incarceration in a jail cell in Alabama to a monitored house arrest in Florida. Alternately, Defendant McCallan could be transferred to a monitored house arrest within Alabama.”
As you can imagine, the Trustee in this case objects to such a change saying, “Defendant McCallan had full access to all of the information and documents necessary to respond to Plaintiff’s post-judgment discovery for over a year between the time he was initially held in contempt and the time this Court ordered his incarceration as a coercive sanction to force his compliance with discovery orders. He did not produce the required information.”
“3. Defendant McCallan has done nothing to account for the $16.2 million in distributions he received between 2007 and 2015.
4. Defendant McCallan has done nothing to explain why monitored house arrest would have the same coercive effect as incarceration in the Montgomery County jail.
5. Defendant McCallan has done nothing to explain why he cannot provide authorizations and/or login credentials to his attorneys or consultants so that they may have complete access to responsive documents for McCallan’s review and production.
6. Finally, McCallan has repeatedly represented to this Court that “I no longer have any bank accounts joint or single.” (TX 53, McCallan’s Second Supplemental Response to Plaintiff’s First Post-judgment Interrogatories, No. 10). McCallan has done nothing to explain the source of funds available to him with which he could satisfy a bond.”
A hearing is scheduled.
Thanks Steve. Keep us updated. He has safes in the ground in his homes filled with cash and gold coins.
If the lawyers want to know where the money is, hit his home with a metal detector to find the safes.
Is he still locked up?
Wow. The coin con
You have to wonder how much in cash and coins he has stashed away
Enough to keep doing time for ehh?
Going on a year in jail huh?
Where do we send some soap for him to drop?