The Consumer Financial Protection Bureau (CFPB) previously went after Certified Forensic Loan Auditors (CFLA) who then in return went after the CFPB.
According to the CFPB, “The Consumer Financial Protection Bureau (Bureau) filed a complaint in federal court in the Central District of California against Certified Forensic Loan Auditors, LLC (CFLA), Andrew Lehman (Lehman), and Michael Carrigan (Carrigan). The complaint alleges that CFLA and Lehman have engaged in deceptive and abusive acts and practices and have charged unlawful advance fees in connection with the marketing and sale of financial advisory and mortgage assistance relief services to consumers.”
A court order was just entered which makes for an interesting update. You see if you read this post and the comments on it you would think CFLA is being totally wronged.
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So then why does Michael Carrigan, named in the CFLA lawsuit by the CFPB then agree to a stipulated final judgment with the CFPB that says:
“Defendant Carrigan must cooperate fully to help the Bureau determine the identity and location of, and the amount of injury sustained by, each Affected Consumer. Defendant Carrigan must provide such information in his or his agents’ possession or control within 14 days of receiving a written request from the Bureau.
Defendant Carrigan must cooperate fully with the Bureau in this matter and in any investigation related to or associated with the conduct described in the Complaint, including the identification of CFLA’s current and former employees and contractors and current and former customers. Defendant
Carrigan must provide truthful and complete information, evidence, and testimony. Defendant Carrigan must appear for interviews, discovery, hearings, trials, and any other proceedings that the Bureau may reasonably request upon 10 days written notice, or other reasonable notice, at such places and times as the Bureau may designate, without the service of compulsory process.”
Carrigan also agreed to a $493,403.04 civil money penalty that was suspended due to his inability to pay. He will, however, have to ” pay a civil money penalty in the amount of $5,000 by wire transfer to the Bureau.”
Carrigan also has agreed to be permanently banned from “providing, advertising, marketing, promoting, offering for sale, selling, or producing any Mortgage Assistance Relief Service or Financial Product or Service.” And also banned from “Assisting Others in, or receiving any remuneration or other consideration from, the provision, advertising, marketing, promoting, offering for sale, sale or production of any Mortgage Assistance Relief Service or Financial Product or Service.”
Just from observing what Michael Carrigan has agreed to and provide it appears the CFPB has “flipped” Carrigan to get inside information. It will be interesting to see what commenters say now.