Quick Answer: Hess Kennedy Debt Settlement was a scam that defrauded clients nationally before being shut down in Florida. The receiver found nearly $55 million in valid claims against the firm and its affiliates after investigating the fraudulent debt settlement operation.
In a twisted matter of irony the law firm that was acting as a receiver for the Hess Kennedy debt settlement company that was closed down in Florida, has been closed down.
Law.com reported that Lewis B. Freeman & Partners went to court in Florida on Friday and put the firm out of business. This seems to have stemmed from a recent FBI raid of the offices and allegations that $3.6 million from accounts overseen by the firm is missing.
Freeman’s firm also took charge of the shuttered Coral Springs firm Hess Kennedy, which allegedly defrauded clients nationally in a debt settlement scam. Receiver Daniel Stermer, a member of Freeman’s firm, found almost $55 million in valid claims against the law firm and its affiliates.
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Stermer was appointed in the case filed by the state attorney general’s office. An office spokeswoman, who commented on condition of anonymity, said Stermer was an independent fiduciary and Freeman had no authority in the receivership.
“The Freeman situation should not affect the Hess Kennedy case in any way,” she said.
Stermer did not return calls for comment by deadline. Source
Loyal readers may remember that I had interviewed Daniel Stermer about his experience as receiver with the Hess Kennedy matter. You can listen to that interview here.
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Dan stermer was on vacation july 17 2008 lewis b freeman ran hess kennedy