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Sued or Sanctioned

Second Attorney, Partner, Has Law License Suspended for 6 Months for Debt Settlement Activity

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Yesterday I published information about an attorney in Florida who had his law license suspended for debt settlement activity. What I missed was his partner had his law license suspended as well. Thanks to commenter Bulb it was pointed out to me. “Brett Feinstein, 407 Lincoln Road, Suite 2A, Miami Beach, suspended for six months, effective 40 days from a ... Read More »

    Florida Lawyer Suspended for Debt Negotiation Assistance and Fee-Sharing

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    A tipster (send in your tips here) forwarded me a copy of the latest disciplinary actions out of Florida that show an interesting situation which may have a far reaching impact on attorney-back office relationships with debt settlement companies. Douglas David Stratton, Miami Beach, Suspended for 30 days, effective 15 days from a January 4 court order. Stratton’s practice expanded ... Read More »

      State of North Carolina vs. Consumer Law Group. My Morning in the Courtroom.

      NCvCLG

      This morning I had a rare opportunity to go down to the court house and watch a motion argued in the case State of NC vs. Consumer Law Group and Michael Metzner. It was a motion to dismiss and attorney Richard Epstein from Greenspoon Marder flew in from Florida to represent Consumer Law Group. In October 2010 I reported on ... Read More »

        Are You at Risk of Refunds Back Two Years if Your Debt Settlement Clients File Bankruptcy? Legal Helpers Debt Resolution Judgment Says Yes.

        Not long ago I was having a conversation with someone and we were talking about the big refunds debt settlement companies may face from having charged consumers advanced fees for services but not delivered them. The point was also mentioned that for debt settlement clients that enrolled in and paid fees for debt settlement services that later filed bankruptcy, for ... Read More »

          Global Client Solutions and Rocky Mountain Bank & Trust Still Can’t Shake Free of KY Case

          Global Client Solutions and Rocky Mountain Bank & Trust were named in a case that had been filed back in May of 2010. The two entities have tried to get out by enforcing an arbitration clause, but the judge didn’t agree. On February 17, 2010 Judge Heyburn issued an opinion regarding the requests to dismiss GCS and Rocky on the ... Read More »

            Arizona Attorney General Reaches Deal WIth Principal Reduction Group

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            Attorney General Tom Horne today announced recently a settlement agreement with Scottsdale based Principal Reduction Group, LLC, and Brian Cutright, owner and operations manager of Principal Reduction Group, LLC. Pursuant to the settlement agreement, Principal Reduction Group and Brian Cutright agree to no longer engage in any activity, directly or on behalf of any third party, that involves originating, closing, ... Read More »

              Freedom Debt Relief to Pay Big Settlement to Washington Residents

              FDR Judgment Summary

              The Attorney General in Washington announced today they had reached a settlement with Freedom Debt Relief to pay nearly $800,000 in restitution plus attorneys fees and costs. We’re paying special attention to operations that take advantage of people who, due to this tough economy, are already struggling to put food on the table and keep the lights on,” Attorney General ... Read More »

                State of Washington Files Amicus Brief in Support of Case Against Freedom Debt Relief and Freedom Financial Network

                Another brief forwarded to me recently by a regulator friend was that of the amicus brief filed by the State of Washington in a private case against Freedom Debt Relief, Freedom Financial Network, Andrew Houser, and Bradford Stroh. The issue appears to have been if Freedom was in fact a debt adjuster under the Washington Debt Adjusting Act. The claim ... Read More »

                  Global Client Solutions and Rocky Mountain Bank & Trust Said to Have Aided and Abetted Debt Settlement Companies to Violate Statute

                  A regulator friend of mine just forwarded me a copy of the State of Washington amicus brief filed in a class action case I reported about previously. The case is Carlsen v. Global Client Solutions and Rocky Mountain Bank & Trust. – Source The State of Washington weighed in on the matter and make some strong statements that do not ... Read More »

                    Legal Helpers Debt Resolution Lawsuit May Just be the Primer to Kill Most Attorney Model Debt Settlement Groups

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                    For some it was only a matter of time before a regulator took a swipe at the attorney model debt settlement approach. Well today the mystery was solved of who it would be. Attorney General Lisa Madigan, a hero of many for standing up for consumers, answered the call and filed suit today against Legal Helpers Debt Resolution, headquartered out ... Read More »

                      Details on Suit Filed Against Legal Helpers Debt Resolution by Illinois Attorney General Madigan

                      U.S. National Debt Relief Plan

                      For the sake of disclosure, everything below is what is alleged in the lawsuit against Legal Helpers Debt Resolution, also known as Macey, Aleman, Hyslip & Searns. The suit kicks attorney model debt settlement and says it is no better than service delivered by a non-law-firm debt settlement provider. LHDR rarely, if ever, negotiates settlements with all of consumer’s creditors. ... Read More »

                        It Begins. Illinois AG Sues Legal Helpers Debt Resolution.

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                        Yesterday Lisa Madigan, the Illinois Attorney General filed suit against Legal Helpers Debt Resolution, PC. Legal Newsline is reporting that Legal Helpers Debt Resolution “allegedly charged upfront fees for its debt settlement services, but went back on its promises. Legal Helpers Debt Resolution LLC allegedly charged consumers with promises to make them debt free. The consumers’ debt was never relieved, ... Read More »

                          FTC Moves Against Loan Modification Text Spammer

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                          The Federal Trade Commission asked a federal judge to shut down an operation that allegedly blasted consumers with millions of illegal spam text messages, including many messages that deceptively advertised a mortgage modification website called “Loanmod-gov.net.” The FTC is asking the court to freeze the defendant’s assets. According to the FTC complaint, the defendant behind the operation, Phillip A. Flora, ... Read More »

                            Debt Relief Scammer, Sovereign Citizen Unto Himself, Headed to Jail. TN Attorney Fell for His Debt Renegotiation Scheme.

                            A Tennessee businessman, Charles McKuhn, Jr. was found guilty of scamming consumers and churches out of advanced fees for debt reduction, debt consolidation and foreclosure prevention services. McKuhn had claimed his company Taurian Worldwide, Inc. (TWI) has some arrangement to use government bailout dollars to assist people in financial trouble. He also continued his ruse through Interstate Capital Trust, Commercial ... Read More »

                              FTC Sues US Mortgage Funding, Debt Remedy Partners, LowerMyDebts.com, David Mahler, John Incandela, and Jamen Lachs

                              I had heard from multiple tipster (send in your tips here)s over the past ten days about an alleged raid on one or more office in Florida related to some action against U.S. Mortgage Funding. Here are the details of the FTC action against US Mortgage Funding, Debt Remedy Partners, LowerMyDebts.com, David Mahler, John Incandela, and Jamen Lachs that was ... Read More »

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