Debt relief company Orion Processing has filed court documents alleging the Consumer Financial Protection bureau had no authority to seize their business and shutdown Orion and effectively, World Law. For the background on this story, click here.
Orion Processing, Derin Scott, and David Klein say, “Sometime before August 20, 2015, Counter-Defendant decided to bring this action under seal in this Court and obtain under seal from this Court an order authorizing the seizure of all of Counter-Plaintiffs’ property and shutting down Counter-Plaintiffs’ business Orion Processing (“Orion”) while Orion was under the protection of Chapter 11, Title 11, U.S.C. in the United States Bankruptcy Court for the Western District of Texas (the “Bankruptcy Court”).
Counter-Defendant failed to seek or to obtain permission from the Bankruptcy Court or this Court to seize property of the bankruptcy estate. Counter-Defendant at all relevant times was and is attempting to enforce claims, monetary and otherwise, that arose prior to the date Orion filed its voluntary bankruptcy petition, all in violation of 11 U.S.C. § 362.
On or about August 20, 2015, Counter-Defendant seized all of Counter-Plaintiffs’ property and shut down Orion while the Counter-Defendant knew Orion and Klein were litigating the fate of Orion’s future business with State regulators before the Bankruptcy Court regarding the very subject matter of the Complaint. Counter-Defendant was a party in interest in that proceeding but apparently chose not to attend the hearing or to request relief in the appropriate forum. Though a Chapter 7 trustee was later appointed, at the time of the actions complained of Orion was a debtor still in possession of its assets and affairs.
Counter-Defendant’s actions were void under the Bankruptcy laws and otherwise constituted arbitrary and capricious actions under 5 U.S.C. § 706. Wrongfully, Counter- Defendant has continued to maintain possession of property that is properly under the Bankruptcy Court’s jurisdiction and Counter-Defendant continues to interfere with the Bankruptcy case. All of which interfere with Counter-Plaintiffs’ rights.
Counter-Defendant’s actions caused Counter-Plaintiffs damages resulting at least in the loss of their business and were taken willfully in total disregard of the procedures and safeguards of the bankruptcy and other laws of the United States.
A present controversy exists between the Counter-Defendant and the Counter- Plaintiffs as to their respective legal rights in Counter-Plaintiffs’ property and whether that property is part of the bankruptcy estate in the Texas bankruptcy proceeding pursuant to 11 U.S.C § 541 and subject to administration in that proceeding. Accordingly, Counter Plaintiffs seek a declaration from this Court regarding the respective rights of the parties and the bankruptcy trustee in the Counter-Plaintiffs’ property.
Counter-Plaintiffs have been individually harmed by the actions of the Counter- Defendant as described hereinabove.” – Source
As part of the bankruptcy action, Orion recently stated their 2013 income was $8,055,185 and 2014 was $12,346,350.
Bankruptcy documents also said MMDS Consulting in Aliso Viejo, California was owed $168,391. What little information exists online about MMDS describes them as part of financial services with Meridith Sievers as owner and the president is listed as Meredith Ann Medeiros. – Source, Source
The court documents also listed a surprising number of court actions Orion Processing is or was involved in within one year of their bankruptcy filing. According to the document they were involved in actions in Texas, Colorado, Illinois, Oregon, North Carolina, Washington, Connecticut, Georgia, and Florida. – Source
It will be interesting to see how the claims made by Orion play out in the court. Will it reverse the CFPB action? Stay tuned.

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.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
- Plastic Pandemic: US Credit Card Debt Surges Nearly 20% in Q1 2021! - May 12, 2023
- The IRS Resumes Collections Notices: What You Need to Know Before It’s Too Late - May 12, 2023
- How Can I Deal With Payday Loan Debt? - May 12, 2023