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Home > Debt Articles > Justice Takes Time But TX Hits Bob Lindsey with Massive Fine and Guilty Verdict for His Debt Relief Scams

Justice Takes Time But TX Hits Bob Lindsey with Massive Fine and Guilty Verdict for His Debt Relief Scams

In the debt relief world it just takes time for cases to proceed and come to some conclusion. One player in particular, Bob Lindsey, was charged by the State of Texas a year or so ago for his debt invalidation scam.

Shortly before being charged Lindsey ran to Montana and started the same operation again. He’s also run back to Texas to start Real Debt Solutions that was using the same address as one of his companies named in the $13.8 Million judgment against him that was just issued.

The Texas Attorney General stated a Harris County jury has returned a $13.8 million verdict against a credit repair business and its owner, finding they defrauded indebted Texans and failed to register with authorities in violation of state law. The jury found that Jubilee Financial Management LLC, The Credit Card Solution (TCCS), Freedom from Debt Alliance and Robert M. Lindsey used illegal “debt invalidation” schemes that purported to help financially struggling Texans.

According to the State’s enforcement action, the defendants assured customers that they could eliminate their credit card debts and restore their credit ratings. The defendants claimed they could help debtors exploit loopholes in the credit reporting system and pursue litigation against debt collectors for violations Fair Debt Collection Practices Act. Simply filing lawsuits, the defendants falsely claimed, would allow their customers to erase their debts and reap thousands of dollars in court-awarded damages from debt collectors.

More than 700 people paid an average of $3,000 for the defendants’ fraudulent services. Because the defendants offered nothing of value – and charged thousands of dollars for the purported services – already struggling customers were worse off financially after paying TCCS. Once a customer paid TCCS, the defendants promised to help customers send “form letters” to debt collectors and credit reporting agencies. The defendants claimed that the form letters would put the recipient on notice, which TCCS claimed would ultimately benefit customers financially.

After a week-long trial, the jury found that all four defendants violated both the Texas Deceptive Trade Practices Act and the Texas Credit Services Act. The jury also found that Lindsey and TCCS violated the Texas Business Opportunity Act. The latter violations stemmed from the defendants’ attempt to use customers to sell its fraudulent services to other financially strapped Texans. Under state law, multi-level marketers must register with the Texas Secretary of State and obtain surety bonds in order to lawfully operate in the state, but the defendants failed to do so.- Source

The jury was posed the following questions:

  • Did the Defendants engage in any false, mislead, or deceptive act or practice in the conduct of trade or commerce? – Yes
  • Did the Defendants engage in any of the following conduct: – Yes
    1. Failing to register with the State as a “credit services organization.”
    2. Charging for services before completing them.
    3. Making false or misleading statements about the services.
  • Did the Defendants try to sell a business opportunity with proper registration? – Yes
  • Did you find the Defendants were calculated to acquire or deprive money from a consumer older than 65? – Yes
  • Did you find the Defendants committed actual fraud against consumers? – Yes
  • Did you find the Defendants obtained money from consumers using false representations? – Yes
  • Did you find the Defendants obtained money from consumers using false pretenses? – YesSource


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About Steve Rhode

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.

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