Phantom Debt Collectors Banned From Industry

The operators of a scheme that conned consumers into paying non-existent debts will be permanently banned from the debt collection business and from misleading consumers about debt in a settlement with the Federal Trade Commission.

The FTC filed a complaint against Global Asset Financial Services Group, LLC in February, alleging that the operators of the company falsely claimed to be attorneys or affiliated with attorneys to pressure consumers into making payments on debts they did not owe, and threatened to take legal action against consumers if they did not pay.

In May, four of the defendants—Global Asset Financial Services Group, LLC, Ankh Ali, Aziza Ali, and Kenneth Moody—agreed to settle the charges against them. This week, the remaining defendants, Omar Hussain, David Carr, Jeremy Scinta, and nine companies controlled by the three men, also agreed to settle the charges against them.

In addition to being banned from debt collection, debt brokering activities, and misleading consumers, the defendants also will be banned from misrepresenting to consumers whether they are attorneys.

The settlements also include monetary judgments totaling approximately $25.5 million. Most of the judgments are suspended due to the defendants’ inability to pay, except for a $3.1 million judgment against one of the defendants’ companies, Regional Asset Maintenance, LLC. In addition, several of the defendants will have to surrender the contents of their bank accounts.

If the defendants whose monetary judgments have been suspended are found to have lied about their financial condition, the full amount of the judgments would immediately become due.

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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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2 thoughts on “Phantom Debt Collectors Banned From Industry”

  1. I wish I would have found you, Steve Rhode before nearly 3 years ago thinking I was doing the right thing to get out of debt and went with one firm only to be connected to a third party that has left us with the worst credit score by having them NOT PAY our financial credit obligations to our credit card companies, pay them (Gitmeid and Associates) & I’m not done yet! Now I’m looking for Tax Debt Relief Solutions and would love to see if you have any advice you could give me in
    regards to that mess. Your newsletters beneficial to everyone. Thank you! Heather

    • Thank you for the kind words Heather.

      I think the lessons learned from your last experience might serve you well now. Rather than look for a shiny firm that does a lot of advertising, why not look for an experienced tax professional that deals with the IRS on a regular basis. One group of professionals that often gets overlooked is Enrolled Agents. “Enrolled Agents (EAs) are federally-licensed tax practitioners who may represent taxpayers before the IRS when it comes to collections, audits and appeals.” It might be worth finding a local EA and discuss your situation with them. Go to https://taxexperts.naea.org/


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