Case Information:
- Filing Date: February 24, 2025
- Court: United States District Court, Central District of California
- Plaintiff: Federal Trade Commission (FTC)
- Defendants:
- Blackrock Services, Inc. (d/b/a multiple legal-sounding names)
- Liberty Credit Management, Inc.
- Civil Complaint Administration
- Pacific Billing Solutions, Inc.
- Cornerstone Legal Group, LLC
- Individuals: Ryan Evans & Mitchell Evans
Allegations at a Glance:
The FTC alleges that Blackrock Services and its affiliates engaged in deceptive and abusive debt collection practices, including falsely representing debts, threatening legal action, and impersonating law firms. The scheme allegedly involved fraudulent claims that consumers owed money and would face lawsuits, wage garnishments, or credit score damage if they did not pay.
Key Allegations:
- Sent misleading letters to consumers demanding payment for debts that were not owed.
- Falsely claimed to be law firms or affiliated with attorneys.
- Threatened consumers with lawsuits, wage garnishment, and credit damage.
- Illegally obtained sensitive financial information from consumers.
- Collected over $6.2 million from consumers through deceptive means.
Legal Claims:
✅ Federal Trade Commission Act (15 U.S.C. § 45(a)) – Unfair & deceptive practices
✅ Fair Debt Collection Practices Act (FDCPA) (15 U.S.C. §§ 1692-1692p) – False and misleading debt collection practices
✅ Gramm-Leach-Bliley Act (15 U.S.C. § 6821) – Fraudulent access to consumer financial data
✅ FTC’s Impersonation Rule (16 C.F.R. Part 461) – False impersonation of businesses
Relief Sought:
💰 Permanent injunction to stop illegal debt collection practices
💰 Monetary relief to compensate affected consumers
💰 Freezing of assets & appointment of a receiver
💰 Rescission or reformation of fraudulent contracts
The Bottom Line:
The FTC is taking legal action to shut down Blackrock Services’ fraudulent debt collection operation, which allegedly misled consumers into paying debts they did not owe. Consumers should be wary of unexpected legal threats demanding payment and verify any such claims before making payments.
⚖️ Legal Disclaimer: Lawsuits contain allegations that have not been proven in court. Defendants may deny the claims, and the case outcome remains undetermined.
FTC Action Leads to Court Order Halting Phantom Debt Collection Scheme That Took Millions from Consumers and Threatened Consumers’ Credit, Homes, and Employment
As a result of the FTC lawsuit, federal court issues temporary restraining order halting scheme that sent fictitious debt collection notices to consumers nationwide
As a result of a Federal Trade Commission lawsuit, a federal court has temporarily halted the operations and frozen the assets of a phantom debt collection scheme and its operators. The scheme has operated under numerous names, including Blackrock Services, Blackstone Legal Group, Capital Legal Services, Quest Legal Group, Viking Legal Services, and others.
According to the FTC’s complaint, the operators of this scheme are Ryan and Mitchell Evans and their affiliated companies. Debt collectors working for the scheme’s operators and their affiliated companies have sent consumers deceptive warning and collection letters or called them directly, claiming that consumers owed a debt of some kind and threatening legal action, wage garnishment, negative impacts to consumers’ credit, and even arrest if they don’t pay. The debts described in these letters and calls never existed, according to the complaint, and the defendants have no basis to make legal threats toward consumers.
The complaint further alleges that the defendants have sent letters and made phone calls to consumers claiming they owed money to a payday lender, and that the purported “law firm” contacting the consumer will imminently be filing suit against the consumer if the consumer does not pay up. The letters and calls also claim that consumers’ credit will be damaged by the fictitious debt, and that if consumers agree to pay to settle that debt, the harm to their credit could be lessened.
All of the claims in these letters and calls are false, according to the complaint.
The complaint notes that the letters sent by the operators often contain a wealth of sensitive personal information about the consumer, including the last four digits of their Social Security number, leading consumers to believe the letter may be legitimate.
When consumers visit the websites set up by the defendants for the bogus debt collection companies, they are again faced with false warnings that failure to pay these fake debts could result in garnishment of the consumer’s wages, along with lawsuits and impacts to their credit. In follow-up calls, the threats increase, with collectors falsely telling consumers that they have defrauded a financial institution, could be arrested at their workplace, or that their homes could be seized if they do not settle, according to the complaint.
According to the complaint, the scheme has operated under a wide variety of names, including the names of unaffiliated existing businesses and law firms, in violation of the FTC’s Rule on Impersonating Government and Businesses. In addition, the complaint alleges that the defendants have regularly failed to follow numerous requirements set out by the Fair Debt Collection Practices Act, including disclosing that they are debt collectors when their collectors contact consumers.
The FTC’s complaint asks the court to stop the defendants’ unlawful conduct and provide redress to consumers harmed by the scheme. – Source
