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Sued or Sanctioned

Housing Counselor Sentenced to 72 Months in Jail for Stealing Money to Pay Her Mortgage

Nonprofit housing counselors Lori Macakanja, 35, of Dunkirk, New York, was convicted of mail fraud and theft of government money, was sentenced to 72 months in prison and three years supervised release and ordered to pay $298,639 in restitution to victims. Assistant U.S. Attorney Trini Ross, who handled the case, stated that Macakanja, in her capacity as a housing counselor ... Read More »

    Persels & Associates Named in Georgia Class Action With Host of Major Players in Debt Relief

    On January 28, 2012 Carla Broyles, Charity Miaco and Melba Walker filed a class action lawsuit in Georgia against Persels & Associates, Ruther & Associates, Freedom Debt Relief, Consumer Law Associates, Amerix, Careone Services, Tiffany Rowe. The suit states it covers all Georgia resident debtors who have done business with Defendants since July 2003 to the present for violations of ... Read More »

      North Carolina Calls Consumer Law Group Bogus in Settlement Announcement

      It appears an issue with North Carolina and Consumer Law Group finally came to an end. You can read past stories about Consumer Law Group here. What was most interesting about the Consumer Law Group action North Carolina took was the definition of what true attorney representation was in a debt settlement program. Not only did North Carolina not buy ... Read More »

        T Bank Former President to Face OCC Charges Over Processing Credit Repair Payments

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        OCC Will Hold Hearing on Charges against Patrick Adams; Agency Seeks Personal Cease & Desist Order and $100,000 Civil Money Penalty The Office of the Comptroller of the Currency (OCC) today announced a public hearing before an Administrative Law Judge beginning Monday, January 23, 2012, concerning an enforcement proceeding against Patrick Adams, former President and Chief Executive Officer of T ... Read More »

          Court Freezes Assets of Debt Relief Company Premier Savings

          Consolidate Credit Card Debt | Premier Savings (20120118)

          At the request of the Federal Trade Commission, a U.S. district court has frozen the assets of a telemarketing operation that allegedly charged consumers hundreds of dollars based on bogus promises to either provide them with low-interest credit or refund their money. The court also has ordered the illegal conduct to stop while the FTC moves forward with the case. ... Read More »

            Scathing Report From Allegro Law Debt Settlement Bankruptcy Drags In Others

            Allegro Law was an attorney model debt settlement company that charged advanced fees for services to consumers. The group previously fell and Keith Nelms, Esq. was subsequently disbarred and filed a Chapter 7 bankruptcy, taking client deposits with it. The Allegro Law debacle follows in line with the mess created previously by Hess Kennedy, another attorney model debt relief firm ... Read More »

              Prestige Financial Solutions and Amy Thompson Sued by Colorado Attorney General

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              In what may simply be an ironic twist, Eric Thompson of Orion Processing from Westminster, Colorado was just countersued by the Colorado Attorney General on the same day Amy Thompson of Westminster based Prestige Financial Solutions was sued by the Colorado Attorney General. If they are related, it’s a bad day in the Thompson house. Both Orion Processing and Prestige ... Read More »

                Orion Financial Group Sued by Colorado Attorney General

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                Colorado Attorney General John Suthers announced today that his office has filed a counterclaim lawsuit against Orion Financial Group, a Westminster based firm, and its owner, Eric Thompson, on the grounds that they provided debt-management services to Colorado consumers without meeting the registration and reporting requirements of Colorado consumer protection laws. According to the complaint, the state investigated Orion Financial ... Read More »

                  World Law Debt, World Law Group, Orion Processing and Global Client Solutions Sued in Kansas

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                  A Kansas case by Joy Locke-Odell v. Orion Processing d/b/a World Law Debt, d/b/a World Law Group, and Global Client Solutions was just moved to Federal Court. In this case it the Plaintiff position is that each entity involved in this debt relief transaction is a credit services or debt management services organization and subject to Kansas Consumer Protection Act ... Read More »

                    CreditArbitrators and CreditAnswers Targeted by New Mexico for Alleged Illegal Activities

                    Credit Answers and Credit Arbitrators have been on the radar here on the site for a long time. First it was with commercials they were running and later it was with an approach they were taking by mailing a catalog of services in what appeared to be an attempt to circumvent the Federal Trade Commission Telemarketing Sales Rules (TSR) designed ... Read More »

                      Amerix / CareOne Dispute With CESI Debt Solutions May Prove Fatal

                      In a recent filing by Amerix / CareOne over a dispute with the non-profit credit counseling group CESI Debt Solutions, some interesting statements were made. This stems from a round of suits by Amerix and CESI that you can read about here and here. In a document filed with the court in North Carolina, Amerix revels just how dependent they ... Read More »

                        Offshore Debt Relief Offers Promoted to U.S. Residents Targeted by FTC

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                        The Federal trade Commission today announced a new enforcement action against a number of companies. The action targeted Roy M. Cox Jr, Roy Cox, Castle Rock Capital Management, Capital Solutions Group, Transfers Argentina, Public Service, and Marketing Strategy Group. What makes this action interesting is that the companies in question had been established offshore in an attempt to sell debt ... Read More »

                          Morgan Drexen Case Exposes Issues in Attorney Model Debt Settlement

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                          On December 16, 2011, Juanita White v. Morgan Drexen was filed in Virginia. Frankly, I’m getting sick of reporting on all the suits in the debt industry and I was going to pass on this one, until I read it. If all the facts and allegations are true, it’s enlightening. I think readers will be especially interested in the details ... Read More »

                            United Financial Systems and Christopher Boulahanis Reach Settlement With Florida AG

                            This is actually a picture of the UFS building that a reader sent in previously. The Florida Attorney General just made a big announcement concerning the non-profit credit counseling group United Financial Systems. This is a company that we first announced was likely to implode back in August of 2010. Unfortunately the economic impact caused by United Financial Systems will ... Read More »

                              Robert Manning and Responsible Debt Relief Institute Named in Software Suit

                              A tipster (send in your tips here) sent in a recent suit by the Cole Group, Inc and Robert Manning, Newtonian Finances, Debtorwise Foundation, and Responsible Debt Relief Institute. Frankly, the suit is a bit of a shocker. The Manning approach to helping credit counseling groups work out a satisfactory way to determine the most effective way to resolve debt ... Read More »

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