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.”
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.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Do you have a question you'd like to ask me for free? Go ahead and click here.
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.
- We Rise From the Dead Yet Again – Podcast - October 2, 2023
- Lexington Law Credit Repair Gets Hammered in Lawsuit Settlement. If You Sell Credit Repair – Wake Up! - August 28, 2023
- People That Got Scammed by Robocall Debt Relief Company Life Management Services of Orange County to Get Money Back - July 7, 2023