So here is the predictable circle of life with some of the debt relief troubles I’ve written about. I write about a company. I get attacked that I don’t know what I’m talking about. The regulators take action. The company is toast.
Sometimes the underlying people behind these efforts make a ton of money, stash some and settle with the rest. In other cases they wind up busted and broke. Almost never in jail though.
And here is another example. Today the Federal Trade Commission announced a final stipulated judgment with Jeremy R. Nelson, Nelson Gamble & Associates, Jackson Hunter Morris & Knight, Mekhia Capital, and Blackrock Professional Corporation.
In this case the FTC is taking all of the money held in accounts by the named parties, including cleaning out the Global Client Solutions Account.
Global Client Solutions shall, within ten (10) business days from receipt of a copy of this Order, transfer to the FTC or its designated agent all funds, if any, in (a) account number xxxx2173 in the name of Checkmate Debt Solutions, (b) account number xxxx1347 in the name of Jackson Hunter Morris & Knight LLP, (c) account number xxxx1039 in the name of Nelson Gamble & Associates, and (d) account number xxxx1065 in the name of Nelson Gamble & Associates. – Source
Under a settlement with the Federal Trade Commission, a telemarketer who allegedly defrauded consumers with false promises of debt relief and charged them without their consent is banned from selling debt relief services, telemarketing, and making robocalls.
The settlement resolves a complaint the FTC filed last year against Jeremy R. Nelson and four companies he controlled. The agency alleged that they violated federal law by making false claims, causing unauthorized debits from consumers’ bank accounts, and illegally charging advance fees.
The FTC also alleged that the defendants called phone numbers on the National Do Not Call Registry, called consumers who had told them not to call, failed to transmit caller identification to consumers’ caller ID service, delivered pre-recorded messages without prior written consent, repeatedly called consumers to annoy them, and delivered pre-recorded messages that failed to identify the seller, the call’s purpose, and the product or service.
In addition to the ban on debt relief sales, telemarketing, and robocalls, the proposed settlement order permanently prohibits the defendants from misrepresenting material facts about any products and services, making unsubstantiated claims, charging consumers’ accounts without their express informed consent, collecting money from customers who agreed to purchase debt relief products or services from the defendants, selling or otherwise benefitting from consumers’ personal information, and failing to properly dispose of customer information.
The order imposes a judgment of more than $4.6 million against the defendants. The judgment against Nelson will be suspended, based on his inability to pay, after he surrenders to the FTC bank accounts and investment assets frozen by the court. The full judgment will become due immediately if he is found to have misrepresented his financial condition.