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Abusive Debt Collector Accused of Bankruptcy Fraud : When The Collector Becomes the Collected

Over the years Jack H. Boyajian, a seasoned debt collector, has faced accusations from authorities across the U.S. for “illegal methods to squeeze debtors”. This year a new accusation arose against Boyajian after he filed for bankruptcy in August of 2009, that he has defrauded creditors by concealing assets from the court.

The Federal Government says he owes around $670,000 in back taxes; neither he (nor his wife) have allegedly filed taxes since 2005.

The government is now demanding this debt collector pay up on his own debt. When he could not make the payment he filed for bankruptcy in August of 2009, including more than 100 creditors he owed and debts of $3.8 million in the case. However, it has come to light that Boyajian may have been hiding a multimillion-dollar home from the bankruptcy when he only claimed he had $50,000 in assets.

“Boyajian also concealed his interest in his Saddle River home by putting his mother and sister on the title, the trustee alleged. Federal authorities have made a similar claim in a pending suit filed in U.S. District Court in Newark, alleging that Boyajian hid his ownership of the house to protect it from efforts to collect $660,000 owed for back taxes.”

This is not the first time he has skipped out on taxes. It appears that from 1989 to 1992 a company he owned, Far Hills Community Management, neglected to pay any taxes during this time. The government got a little snippy when in 2004 instead of paying off the debt he transferred $1 million to family member Araxie Boyadjian, who purchased the house in question for $4.25 million.

Apparently the federal government got so snippy in fact that they filed this suit against Boyajian accusing him of fraudulently transferring the $1 million. The suit states that even though the property is not listed in his name that since he resides in the property he is the “de facto, equitable owner”.

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In April of 2010 he was discharged from the bankruptcy. However, two weeks later the court put his discharge on hold when trustee, Charles Stanziale, argued that Boyajian should not be “allowed to walk away from his debts, because of his “knowing and intentional concealment” of assets.”

In January of 2010 Stanziale filed a formal complaint and listed seven violations to the United States Bankruptcy Code as to why Boyajian’s discharge should be rejected. The entire complaint can be found here.

“‘Bankruptcy is for honest debtors,’ said Stanziale…’This guy, I allege, is not the average honest debtor who needs a fresh start. This guy committed fraud, and he is not entitled to have his debts released.'”

Boyajian is accused of using over 20 corporate “entities” and family trusts and has admitted to 22 of them, however he claims that he “does not have a bank account” even after one of the entities proceeded to habitually pay his personal expenses which included purchasing a $50,000 car for his wife. Boyajian’s attorney dismisses Stanziale’s claims.

While a resident of New Jersey he was never licensed to practice in the state, which lead him to create offices in California which he visited once or twice a month. Boyajian’s legal problems go as far back as 1995 to one of his debt collection business in California. A report submitted to the California Courts 2008 showed that in just five years, “Boyajian and his companies had faced more than 1,000 consumer complaints, 129 consumer lawsuits, and 10 enforcement actions by attorneys general and other state agencies.”

After attempting to collect a debt on bad checks that were outside of the statute of limitations the state of Colorado banned him and two other attorneys from collecting debt in the state for five years. The mentioned companies included JBC & Associates P.C. and JBC Legal Group P.C. and Boyajian Law Offices P.C., all part of Boyajian Firms; companies that had been formed by Boyajian himself and in which he controlled at all times. Source.

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At least 30 states, which he was not admitted to legally practice law, have raised concerns about Boyajian and his companies for “fraudulent, deceptive and illegal practices” over the years. States reported include, California, New Jersey, New York, Minnesota, Montana, Pennsylvania, Colorado, North Carolina, Kentucky, Alabama, Georgia, Florida, Connecticut, Michigan, West Virginia and Arkansas to name 60% of our 50 states. Source. In fact, after the attorney general of Arkansas sued Boyajian in 2007 the state is “still trying to prevent Boyajian from using the bankruptcy to avoid any penalties”.

“The states’ accusations against Boyajian and his companies included claims that he added improper fees to debts, falsely represented the amount owed and harassed debtors by calling late at night or at work, sometimes using abusive language.”

The results of the case are still pending. All I can say is that every dog has its day — and this day is not Jack H. Boyajian’s.

Original Articles:
Feds Go After Bergen County Debt Collector
Saddle River Debt Collector Accused of Concealing Assets, Fraud, by Bankruptcy Trustee

About the author

Amanda Miller


  • i had been a collector for him! long time ago in California. When the location was opening. We were 5 collectors only.All of the sudden I remember one day we could not dial anymore. The main location in Jersey unplugged our calling system.

  • I met Boyajian 10 years ago. A freind of mine worked for him and convinced me to speak with him about a business venture he was trying to get into. He was sleazy and slimy and after 1 minute..I knew he was trouble. I hope he pays back all that he owes.

  • I met Boyajian 10 years ago. A freind of mine worked for him and convinced me to speak with him about a business venture he was trying to get into. He was sleazy and slimy and after 1 minute..I knew he was trouble. I hope he pays back all that he owes.

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