Subscribe to our mailing list

X

Allegro Law Bankruptcy Puts Past Marketers at Financial Risk

By on March 19, 2011
Allegro Law Bankruptcy Puts Past Marketers at Financial Risk

In 2010 the attorney run debt settlement company Allegro Law imploded. It not only led to the bankruptcy of the debt settlement company but the disbarment of Andy Nelms, Esq.

As I covered in the saga of Allegro Law and their subsequent bankruptcy, large amounts of money were paid to marketers to attract consumers to the failed attorney model debt settlement program.

On March 10, 2011 the bankruptcy trustee in the Allegro Law bankruptcy took action and filed suit against lead generators and marketers to recover money paid.

Named as defendants in the suit are Credit Exchange, Elimadebt, First American Debt Relief, Internet Marketing Solutions, ComCred Corporation, Interservice Financial Solutions, Liberty Debt Relief, Precision Polling, SCK Marketing, Future Financial Services, First Choice Financial Services, The Achievable, EOS Unlimited, Americas Debt Choice, Pivotal Marketing Solutions, Creditors Interchange Receivable Management, Oasis Debt Relief, Clear Choice Debt Relief, Two Thumbs Up, ACD Debt Solutions, American Pro-Services, Clear Choice Solutions, Debt Zero, Financial Freedom Education Network, MegaClik, No Delay Enterprises, The Rose Group, and 42 Capital.

The lawsuit by the bankruptcy trustee alleges the marketing companies “failed to deliver on the promised services, made false claims about the results that they could achieve for customers, exaggerated the effectiveness of what few services were provided, and charged exorbitant fees for doing so.”

Both AmeriCorp, Inc. and Seton, Inc. are mentioned in the suit in relation to the Defendants charging big fees but not delivering. The suit says, “Falsely stating the extent to which AmeriCorp, Inc., Seton, Inc. and/or other processors could successfully negotiate a reduction in debt on behalf of customers,” and “Conceling the extent of the fees charged by the Defendants as well as by AmeriCorp, Inc. Seton, Inc. and/or other processors.”

The trustee is requesting that the named parties “turn over: (1) the money that they collected in fees for services that were not performed and/or not adequately performed; and (2) any and all records (whether stored in electronic or hard copy format) relating to any and all aspects of the debt elimination programs, including, but not limited to, any and all records relating to each individual for who Defendants performed or agreed to perform any aspect of the debt elimination marketing services.”

READ  Get Out of Debt Podcast - Answers for Peggy About Allegro Law

Defendants were “insiders” to the operation, is what the trustee is claiming, and money paid within two years of the bankruptcy filings should be recovered as fraudulent transfers. – Source

And to think, last week debt settlement companies were freaking out over the possibility of receiving an FTC Civil Investigative Demand letter. This case seems like bigger bad news for the Defendants since it not only requests a lot more additional information and accounting records, but it can result in the loss of money earned over the past two years.


I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Steve Rhode

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.

4 Comments

  1. Debt Guy 13

    March 21, 2011 at 2:30 pm

    why is a collection agency like Creditors Interchange Receivable Management named on the suit as marketers?

  2. Debt Guy 13

    March 21, 2011 at 6:30 pm

    why is a collection agency like Creditors Interchange Receivable Management named on the suit as marketers?

  3. Joe_debt_jr

    March 19, 2011 at 12:49 pm

    I take it those companies on this list will soon file bk protection aswell and if so how does the clients already in the program be protected?

  4. Anonymous

    March 19, 2011 at 4:49 pm

    I take it those companies on this list will soon file bk protection aswell and if so how does the clients already in the program be protected?

Share a Comment / Leave a Reply

%d bloggers like this: