The official receiver for the California action against companies marketing mass joinder suits has posted an update.
Receiver Seeking Court Approval to Dispose of Furniture and Equipment and Return Leased Offices to Landlords
The Receiver has applied to the Court for formal approval to commence the process of shutting down the various office sites of Defendants and returning the premises to the respective landlords. As part of that process, the Receiver will dispose of furniture and equipment on site acquired by Defendants as part of the business enterprise. The Receiver’s application will be heard on Monday, October 3, 2011.
The physical office spaces which are asked to be liquidated are:
The receive is asking for permission to liquidate the properties and contents because it was determined that “all of these enterprises [run by the Defendants] are so intertwined in illegal fee-splitting, deceptive advertising, and illegal loan modification services that they could not be continued lawfully or profitably.” – Source
The receiver is additionally moving to have the mass joinder office locations closed in an effort to try to protect funds to return to consumers.
“The likely result of this is that the landlords will never be paid, or if they are paid, it will come at the expense of the consumers that Defendants are alleged to have victimized through unlawful practices.”
In a disappointing note the receiver is already indicating there will probably be insufficient funds to refund consumers.
“…as there are limited and almost always insufficient funds to repay the consumers. This certainly appears to [be] the case here.”

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