Operation Corrupt Collector - Federal & State Actions | 2020 - Federal & State Actions 2020
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Operation Corrupt Collector Federal & State Actions | 2020
Federal Actions
FEDERAL ACTIONS:
Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
FEDERAL TRADE COMMISSION
FTC v. National Landmark Civil lawsuit: The FTC’s complaint, Date of action: Federal Trade Commission Jay Mayfield
Logistics, LLC, et al. seeking permanent injunction and 7/13/2020: Complaint filed. (202) 326-2656
equitable monetary relief, alleges that jmayfield@ftc.gov
this company and its operators Related matters:
No. 0:20cv2592
collected more than $12 million from 7/17/20: Ex parte Temporary Restraining
U.S. District Court
consumers through illegal debt Orders issued.
District of South Carolina
collection practices. The defendants
allegedly used robocalls to leave 8/25/2020: Stipulated preliminary
(Charlotte, North Carolina area) deceptive messages for consumers injunction entered as to defendants Liberty
about debts claiming they face Solutions & Associates LLC, LSA
impending legal action about debts, Processing System LLC, James Dennison
and when consumers returned the and Eric Dennison.
call, the defendants would falsely
claim to be from a mediation or law 9/14/2020: Temporary Restraining Order
firm, again threatening legal action, as to defendants National Landmark
using knowledge of consumers’ Logistics LLC, National Landmark Service
personal information as a way to of United Recovery LLC, Silverlake
convince consumers the threats were Landmark Recovery Group, LLC, and Jean
real. The complaint alleges that in Cellent extended until 10/5/2020.
many instances, consumers did not
owe the debt being collected or the Status of action:
defendants had no right to collect it. Pending.
FTC v. Absolute Financial Civil lawsuit: The FTC’s complaint, Date of Action: Federal Trade Commission Jay Mayfield
Services, LLC, et al. seeking permanent injunction and 7/13/2020: Complaint filed. (202) 326-2656
equitable monetary relief, alleges that jmayfield@ftc.gov
this company and its operators Related matters:
No. 0:20cv2596
collected more than $5.2 million from 7/17/2020: Ex parte Temporary
U.S. District CourtDistrict of South Carolina consumers through illegal debt Restraining Orders issued.
collection practices. In its complaint,
(Charlotte, North Carolina area) the FTC alleged that the company 9/14/2020: Stipulated preliminary
used the defendants in the National injunction entered.
Landmark Logistics case (above) to
place deceptive robocalls alleging Status of action:
that consumers owed debt and faced Pending.
legal action if they did not reply.
Once consumers called the
defendants after receiving the
message, the defendants would often
falsely claim to be representing a law
firm or threaten consumers with arrest
if they did not immediately pay the
debt. According to the complaint, the
defendants would use consumers’
personal information (provided by the
National Landmark defendants) as a
way to convince consumers that the
debt was legitimate, among numerous
other illegal tactics.
FTC v. Global Asset Financial Civil lawsuit: The FTC’s complaint Date of action: Federal Trade Commission Jay Mayfield
Services Group LLC, et al. charged the Global Asset Financial 6/12/2019: Stipulated Final Order against 4 (202) 326-2656
Services Group collection operation defendants entered. jmayfield@ftc.gov
No. 3:19-cv-55-GCM with falsely claiming to be attorneys
U.S. District Court or affiliated with attorneys to pressure 12/06/2019: Stipulated Final Orders
Western District of North Carolina consumers into making payments on against 12 remaining defendants entered.
fake or unauthorized debts and https://www.ftc.gov/
(North Carolina and New York) threatening to take legal action In June 2019, the court entered a news-events/press-
against consumers if they did not pay. settlement order as to four of the releases/2019/12/op
One of the companies, a debt-broker, defendants. In December 2019, the erators-phantom-
was alleged to have bought, sold, and remaining 12 defendants also agreed to debt-scheme-
placed whole portfolios of fake debt, settle the charges against them. The court permanently-
even after consumers said they did entered stipulated judgments as to all banned-debt-
not recognize the debt. defendants banning them from debt collection
collection, debt brokering activities and
from misrepresenting to consumers thatthey are attorneys. The settlements also
include monetary judgments.
Status of action:
Completed.
FTC and State of New York v. Civil lawsuit: The FTC and the New Date of action: Federal Trade Commission Jay Mayfield
Hylan Asset Management, LLC, et York Attorney General’s complaint 6/26//2019: Stipulated Orders for & (202) 326-2656
al. charged the Hylan defendants, a debt Permanent Injunction and Monetary New York State Office of jmayfield@ftc.gov
broker operation, with buying, Judgment entered. the Attorney General
No. 1:18-cv-00710-LJV placing for collection, and selling
U.S. District Court portfolios of phantom debts, In June 2019, the court approved a (case filed jointly)
Western District of New York including debts that were fabricated Stipulated Final Order that bans the Hylan https://www.ftc.gov/
or unauthorized by consumers, even defendants from debt collection activities news-events/press-
(New York) though the debt broker was aware that and imposes a monetary judgment. The releases/2019/07/ph
many of these debts were fabricated June 2019 Stipulated Order against the antom-debt-brokers-
or legally unenforceable. Hylan then defendants involved in Worldwide collectors-settle-ftc-
placed the phony debts for collection Processing bans the company and its new-york-ag-
with several collection agencies, owner, Frank A. Ungaro, Jr. from charges
including another corporate engaging in unlawful collection practices
defendant, Worldwide Processing and imposes a monetary judgment.
Group, LLC, which used illegal
tactics to collect on them, despite
consumers’ credible denials that they Status of action:
did not owe the debts. Completed.
FTC and State of New York v. Civil lawsuit: The FTC and New Date of action: Federal Trade Commission Jay Mayfield
Campbell Capital LLC, et al. York Attorney General sued Robert 2/07/2020: Stipulated Order for Permanent & (202) 326-2656
Heidenreich; Campbell Capital LLC; Injunction and Monetary Judgment New York State Office of jmayfield@ftc.gov
Kahl, Heidenreich, and Nemmer Entered against defendant Robert the Attorney General
No. 1:18-cv-01163-LJV-MJR
LLC; Urban, Heidenreich, Melendez, Heidenreich.
U.S. District Court
and Associates, LLC; J & V (case filed jointly) https://www.ftc.gov/
Western District of New York
Receivables LLC; Rich Financial 2/07/2020: Default judgment against news-events/press-
LLC; and BCH & Associates Ltd. remaining defendants entered. releases/2020/02/op
(New York) The complaint alleged egregious debt erator-fraudulent-
collection practices, such as calling In February 2020, the Court approved a debt-collection-consumers and falsely claiming to Stipulated Final Order settling the claims scheme-settles-ftc-
work in law enforcement, typically against defendant Robert Heidenreich. new-
coupled with false claims that Under the settlement, he is permanently york?utm_source=g
consumers committed a crime or banned from the debt collection business ovdelivery
were about to be arrested on a and prohibited from misleading consumers
warrant. about any financial products and includes
a monetary judgment.
A February 2020 default judgment was
entered against the remaining defendants
imposing a ban from the debt collection
business and a monetary judgment.
Status of action:
Completed.
CONSUMER FINANCIAL PROTECTION BUREAU
Consumer Financial Protection Civil lawsuit: The CFPB and New Date of action: Consumer Financial Marisol Garibay
Bureau and the People of the State York Attorney General sued Douglas 7/25/2019: Stipulated Final Judgment Protection Bureau Marisol.Garibay@cf
of New York, by Letitia James, MacKinnon, Northern Resolution filed. & pb.gov
Attorney General for the State of Group, LLC, Enhanced Acquisitions,
New York State Office of
New York v. Douglas MacKinnon, LLC, Delray Capital, LLC, and Mark The Stipulated Final Judgment with the Attorney General
Northern Resolution Group, LLC, Gray for illegal collection tactics, MacKinnon, Northern Resolution Group,
Enhanced Acquisitions, LLC, including misrepresenting to and Enhanced Acquisitions banned them https://www.consum
Delray Capital, LLC, and Mark consumers that they owed sums they from the industry and required they $60 (case filed jointly) erfinance.gov/about-
Gray did not owe; falsely threatening million in redress and penalties. The us/newsroom/cfpb-
consumers with legal action that the Stipulated Final Judgment with Delray and-new-york-
collectors had no intention of taking; Capital and Gray banned them from the attorney-general-
U.S. District Court settle-debt-
and impersonating law enforcement industry and required payment of redress
Western District of New York collection-group/
officials, government agencies, and and civil money penalties.
court officers.
(Buffalo, New York) Status of action:
Completed.Bureau of Consumer Financial Civil lawsuit: The CFPB and the New Date of action: Consumer Financial Marisol Garibay
Protection and the People of the York Attorney General sued a 9/08/2020: Suit filed. Protection Bureau Marisol.Garibay@cf
State of New York, by Letitia network of five companies, two of & pb.gov
James, Attorney General for the their owners, and two of their Status of action:
New York State Office of
State of New York, v. managers, for illegal debt collection Pending. www.consumerfina
the Attorney General
JPL Recovery Solutions, LLC, practices. The complaint alleges that nce.gov/policy-
Check Security Associates, LLC from at least 2015, the defendants compliance/enforce
have used deception, harassment, and (case filed jointly) ment/actions/jpl-
dba Warner Location Services and
Orchard Payment Processing other improper methods to induce recovery-solutions-
Systems, ROC Asset Solutions LLC consumers to make payments to them llc-et-al/
dba API Recovery Solutions, in violation of the Fair Debt
Regency One Capital LLC, Collection Practices Act (FDCPA)
Keystone Recovery Group, LLC, and the Consumer Financial
Christopher L. Di Re, Scott A. Protection Act (CFPA). The
Croce, Brian J. Koziel, and Marc complaint seeks consumer redress,
D. Gracie disgorgement of ill-gotten gains, civil
money penalties, and appropriate
injunctive relief against the
U.S. District Court defendants.
Western District of New York
(Buffalo, New York area)
U.S. DEPARTMENT OF JUSTICE
U.S. v. Angel Armando Adrianzen Criminal indictment and conviction. Date of action: U.S. Department of Justice https://www.justice.
9/2019: Complaint filed. Consumer Protection gov/opa/pr/californi
Pleaded guilty to conspiracy to 10/08/2019: Indictment. Branch a-resident-charged-
U.S. District Court
commit mail fraud and wire fraud for 11/21/2019: Pleaded guilty (pending & leading-
Southern District of Florida
partnering with call centers in Peru sentencing). telemarketing-
U.S. Postal Inspection
that took money from U.S. Spanish- conspiracy-defraud-
(California) Service
speaking victims through lies and and-extort-us-
threats. These callers claimed to be consumers
attorneys or government
representatives, and falsely told https://www.justice.
victims that they had failed to pay for gov/opa/pr/californior receive delivery of products. a-resident-pleads-
guilty-
telemarketing-
conspiracy-defraud-
us-consumers
U.S. v. Jesus Gutierrez Rojas, Criminal indictment, extradition, 4 Date of action: U.S. Department of Justice https://www.justice.go
Alexandra Podesta, Virgilio Polo, defendants sentenced to terms of 4/2019: Defendants extradited. Consumer Protection v/opa/pr/four-
and Omar Portocarrero incarceration. Branch extradited-peru-
Summer 2019: Pleaded guilty and operating-spanish-
& speaking-call-centers-
Gutierrez oversaw a series of call sentenced to terms of incarceration.
U.S. District Court U.S. Postal Inspection extorted-us-consumers
Southern District of Florida centers in Peru that falsely told Service
Spanish-speaking victims across the https://www.justice.go
United States that they incurred debts v/opa/pr/peruvian-
(Lima, Peru) man-pleads-guilty-
and would suffer various
consequences for failure to pay off operating-spanish-
the debts that they did not, in fact, speaking-call-center-
threatened-and-
owe. Podesta, Polo, and Portocarrero
extorted-us
managed and supervised three of
these call centers. https://www.justice.go
v/opa/pr/three-
peruvians-plead-
guilty-overseeing-
spanish-speaking-call-
centers-extorted-us-
consumers
https://www.justice.go
v/usao-sdfl/pr/four-
peruvians-sentenced-
overseeing-spanish-
speaking-call-centers-
threatened-and
U.S. v. Johnny Hidalgo Marchan, Criminal indictment, extradition, and Date of action: U.S. Department of Justice https://www.justice.go
Francesco Guerra, and Rodolfo 3 defendants sentenced to terms of 12/2019: Defendants extradited. Consumer Protection v/opa/pr/three-men-
Hermoza incarceration. Branch extradited-overseeing-
Spring 2020: Pleaded guilty. call-centers-
& threatened-and-
U.S. District Court The three men operated call centers in U.S. Postal Inspection defrauded-spanish-
Summer 2020: Sentenced to terms ofSouthern District of Florida Peru, which used government incarceration. Service speaking-us
impersonation, lies, and threats to
steal money from thousands of https://www.justice.go
(Lima, Peru) v/opa/pr/two-
Spanish-speaking victims in the U.S.
peruvians-plead-
The callers falsely accused the guilty-overseeing-call-
victims of having failed to accept centers-threatened-
delivery of products and claimed the and-defrauded-
victims owed fines and that court spanish-speaking
proceedings would be brought against
them. https://www.justice.go
v/opa/pr/peruvian-
man-pleads-guilty-
overseeing-call-
centers-threatened-
and-defrauded-
spanish-speaking
https://www.justice.go
v/opa/pr/three-
peruvian-men-
sentenced-significant-
terms-incarceration-
overseeing-call-
centersState Actions
Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
ARIZONA
State of Arizona v. Mark Civil lawsuit, seeking restitution, civil penalties, Date of action: Arizona Attorney Katie Conner
Anthony Smith and Deborah attorneys’ fees and costs, and injunctive relief, filed 9/23/2020: Complaint General’s Office 602-542-8019
Ann Butler, d/b/a CMS Financial under the Arizona Consumer Fraud Act and alleging filed. Katie.Conner@azag.go
Group, John Lee Group & that the debt collectors call consumers nationwide v
Associates, and TD Financial from Phoenix, Arizona using false claims and threats
Solutions Group AZ to induce consumers to pay debts, including debts
that the defendants have no authority to collect. The
CV2020-011728
Defendants allegedly impersonate law enforcement
Superior Court of Arizona in the
officers and process servers during calls to consumers
County of Maricopa
and claim that they are attempting to serve a
(Phoenix, Arizona) summons and complaint. In voicemails left for
consumers, defendants represent that consumers must
immediately respond or be subject to court action.
Defendants allegedly frequently use call spoofing
software for their collection calls, which makes it
appear as though calls originated from court houses,
sheriffs’ offices, jails, or other public offices.
When consumers return defendants’ voicemails,
defendants are alleged to falsely represent that they
are lawyers or associated with lawyers or a law firm
and make false or misleading statements, including
that a civil or criminal action is imminent and would
result in adverse consequences unless consumers
promptly pay or otherwise cooperate with
Defendants’ collection efforts. Defendants’ alleged
false threats include: that defendants will garnish
wages and tax returns; place liens on house and car
titles; freeze bank accounts; file to have consumers’
drivers licenses suspended; send out law enforcement
to consumers’ houses, their relatives’ houses, and/or
place of employment; and have consumers arrested.Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
CALIFORNIA
People v. Adir International, Civil lawsuit against retail chain that targeted Latino Date of action: California Dept. of Press contact on all
LLC dba Curacao, et al. immigrants. Complaint alleges numerous violations 2/19/2020: First Amended Justice - Attorney matters:
of California law, including violations of California’s Complaint filed. General’s Office (916) 210-6000
Case No. BC680425 Rosenthal Fair Debt Collection Practices Act and the agpressoffice@doj.ca.
California Superior Court Small Claims Act. (Los Angeles County gov
Los Angeles County Status of action: Department of
Alleged violations include: threatening debt Pending. Consumer and Business https://oag.ca.gov/new
(Los Angeles, California) collection letters; failure to serve consumers with Affairs assisted in pre- s/press-
small claims actions and required account records, litigation and litigation releases/attorney-
leading to default judgments and unlawful wage investigations) general-becerra-takes-
garnishment; unlawfully sending independent retailer-curacao-court-
contractors to represent company at small claims unlawfully-preying
hearings; and falsification of claimed costs of suit,
artificially inflating default judgments.
People v Ramil Abalkhad et al. Criminal Action: Felony Complaint filed against Date of action: California Dept. of Press contact on all
jewelry store owner for multiple offenses, including 11/01/2019: Ordered to Justice - Attorney matters:
Case No. BA453003 conspiracy to engage in unlawful debt collections pay $16,440 victim General’s Office (916) 210-6000
Los Angeles County Superior restitution. agpressoffice@doj.ca.
Court gov
(California)
https://oag.ca.gov/new
s/press-
releases/attorney-
general-becerra-
secures-more-16000-
victim-restitution-san-
diegoMatter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
COLORADO
CAR & Associates Cease & Desist Advisory Notice Date of action: Colorado Department of Lawrence Pacheco
6/09/2020. Law, Consumer Credit Director of
(Brea, California) Unit Communications
Status of action: (720) 508-6553
Lawrence.Pacheco@coa
Complete.
g.gov
Accredited Management Cease & Desist Advisory Notice Date of action: Colorado Department of Lawrence Pacheco
Solutions LLC 1/21/2020. Law, Consumer Credit Director of
Unit Communications
Status of action: (720) 508-6553
(East Amherst, New York) Lawrence.Pacheco@coa
Complete.
g.gov
CSN Student Loan Recovery Cease & Desist Advisory Notice Date of action: Colorado Department of Lawrence Pacheco
10/16/2019. Law, Consumer Credit Director of
(Phoenix, Arizona) Unit Communications
Status of action: (720) 508-6553
Lawrence.Pacheco@coa
Complete.
g.gov
Gaffney Mediation Services Cease & Desist Advisory Notice Date of action: Colorado Department of Lawrence Pacheco
10/15/2019. Law, Consumer Credit Director of
(Richmond, Virginia) Unit Communications
Status of action: (720) 508-6553
Lawrence.Pacheco@coa
Complete.
g.gov
Johnson, Smith & Associates Cease & Desist Advisory Notice Date of action: Colorado Department of Lawrence Pacheco
9/30/2019. Law, Consumer Credit Director of
(Woburn, Massachusetts) Unit Communications
Status of action: (720) 508-6553
Lawrence.Pacheco@coa
Complete.
g.govMatter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
CONNECTICUT
Notice of Intent to Impose Civil Administrative action alleging that Respondent acted Date of action: State of Connecticut Matt Smith
Penalty and Notice of Right to within this state as a consumer collection agency 9/10/2020: Notice issued. Department of Banking
Hearing in the Matter of: without a license, and used false, deceptive or (860) 240-8105
Samantha S. Flores d/b/a misleading representations or means in connection Status of action:
Premier Legal and Financial with the collection of debt from a Connecticut Pending: Respondent has
Services a/k/a Premier Legal & resident, including representing that the debt was been afforded an
Financial Group valid and a lawsuit would be filed imminently. opportunity to request a
hearing on the allegations
(Apple Valley, California) set forth in the Notice.
FLORIDA
CNR Express Group LLC Warning Letter Date of action: Florida Office of the Kylie Mason
9/15/2020: Warning Attorney General Press Secretary
(Orlando, Florida) Based on consumer’s allegations, the targets are Letter sent. Office of Attorney
failing to provide written validation of debts and have General
orally represented themselves as attorneys. At this Main: (850) 245-0150
time, the relief the Florida Office of the Attorney Kylie.Mason@myflori
General is seeking is response from target companies dalegal.com
with resolutions.
Feldman and Stern Warning Letter Date of action: Florida Office of the Kylie Mason
9/15/2020: Warning Attorney General Press Secretary
(Altamonte Springs, Florida) Based on consumer’s allegations, the targets are Letter sent. Office of Attorney
failing to provide written validation of debts and have General
orally represented themselves as attorneys. At this Main: (850) 245-0150
time, the relief the Florida Office of the Attorney Kylie.Mason@myflori
General is seeking is response from target companies dalegal.com
with resolutions.Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
IDAHO
Date of action: Idaho Department of Celia Kinney,
Midwest Fidelity Services LLC 6/06/2019: Complaint
Mediation on Consumer Complaint: Finance Consumer Affairs
Idaho received, file #11380. Officer
(Kansas) Complainant contended that Midwest Fidelity
7/19/2019: Mediation
Services, LLC, an unlicensed collector in the State of (208) 332-8067
resolution #10686. Midwest
Idaho, was attempting to collect on a previously paid Fidelity Services, LLC
debt. releases debt against
complainant, ceases
collection efforts, and
acquires licensure.
Date of related events:
9/04/2019: Midwest Fidelity
Services, LLC became
licensed with the
Department.
Mediation on Consumer Complaint: Date of action: Idaho Department of Celia Kinney, Consumer
Midland Funding, LLC 6/17/2020: Complaint Finance Affairs Officer
Idaho Complainant contended that Midland Funding LLC received, file # 12634.
had assigned a debt against her that was the result of (208) 332-8067
(California) 8/13/2020: Mediation
an instance of identity theft. The debt was
Resolution #11887.
subsequently assigned to Machol & Johannes LLC Date of related events:
who then garnished all of the funds in the Midland Funding LLC,
complainant’s checking account. reached out to the assignee
of the debtor account
Machol & Johannes LLC
and provided the
complainant a fraud affidavit
to sign and return. Upon
receipt all further funds due
were cleared. As ofMatter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
8/20/2020 and refund is
pending for the funds
garnished from the
consumer’s account.
Mediation on Consumer Complaint: Date of action: Idaho Department of Celia Kinney, Consumer
JP Development, Inc. d/b/a 3/20/2020: Complaint Finance Affairs Officer
AcctCorp International received, file #12584. (208) 332-8067
Complainant contended that JP Development Inc.
Idaho acquired their account in error as it had been satisfied 4/21/2020: Mediation
Resolution #11843.
(Idaho) with the original creditor. Subsequently JP
Date of related events:
Development Inc. received a judgment against the 5/06/2020: JP Development,
complainant and garnished the majority of the Inc. vacated the judgement
disputed sum from their checking account. for debt that was previously
satisfied with the original
creditor, and issued a refund
to the consumer for all
monies previously
garnished.
Mediation on Consumer Complaint: Date of action: Idaho Department of Celia Kinney, Consumer
Apex Servicing d/b/a First Loan 5/14/2020: Complaint Finance Affairs Officer
Idaho Apex Servicing issued a “Wage Assignment Demand received, file # 12606. (208) 332-8067
(South Dakota) Notice” to the complainant, an employer, instructing
6/01/2020: Mediation
them to garnish wages from an employee paycheck
Resolution #11864.
for alleged loans owed to Inbox Loan and First Loan. Date of related events:
This complaint was filed by an employer on behalf of 6/01/2020: Subject of
employee. complaint issued a “wage
assignment release” to the
complainant (employer of
the debtor). Furthermore,
subject claimed exemption
from licensure as First Loan
asserting to be owned by the
Elem Indian Colony of
Pomo Indians, a federally
recognized Indian Tribe.Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
ILLINOIS
People of the State of Illinois v. Civil lawsuit: Date of action: Illinois Attorney Tori Joseph
Freedom Financial Solutions, 1/13/2020: Complaint filed. General’s Office tjoseph@atg.state.il.us
Desiree Hawkins, and Jean Complaint for Injunctive and Other Relief.
Johnson https://illinoisattorneyg
Status of action: eneral.gov/pressroom/
2020-CH-00397 Pending. 2020_01/20200113.ht
Cook County Circuit Court ml
Chancery Division, Illinois
(Cook County, Illinois)
INDIANA
State of Indiana v. New Britain Civil action with claims under the Indiana Deceptive Date of action: Office of the Indiana Shelley Triol
Financial, LLC and Nelson Consumer Sales Act and Senior Consumer Protection 9/04/2020: Complaint filed. Attorney General (317) 233-3715
Macwan Act seeking restitution, injunction, and civil penalties. Shelley.Triol@atg.in.g
Status of action: ov
45D01-2009-PL-000584 The State of Indiana alleges that Defendants New Pending.
Lake County Superior Court Britain Financial, LLC and its owner Nelson Macwan
violated the Indiana Deceptive Consumer Sales Act
(Munster, Indiana) (“DCSA”) and Senior Consumer Protection Act by
attempting to collect debts from consumers that did
not belong to those consumers, were already paid,
were discharged in bankruptcy, or were otherwise not
owed. Additionally, the Defendants threatened to
have people arrested, to have their wages garnished,
and to have liens put on their homes when the
Defendants had no legal right to do so. AndMatter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
Defendants violated the DCSA by acting as a debt
collector after having its license renewal denied by
the Indiana Secretary of State. The State of Indiana
seeks restitution for consumers, an order enjoining
New Britain Financial, LLC and Nelson Macwan
from acting as debt collectors in Indiana, and civil
penalties.
MASSACHUSETTS
Eastern Revenue, Inc. Cease Directive: Date of action: Massachusetts Cynthia A. Begin, Esq.
Issued in response to alleged unlicensed debt 8/31/2020: Completed. Division of Banks First Deputy
(Wayne, Pennsylvania) collection activity in Massachusetts related to Commissioner of
apparent phantom debt. Date of Related matters: Banks
Consumer complaint Massachusetts
received on 8/19/2020 Division of Banks
alleging attempted (617) 956-1523
collection activity on cindy.begin@mass.gov
7/31/2020.
Johnson Smith & Associates Cease Directive: Date of action: Massachusetts Cynthia A. Begin, Esq.
Issued in response to alleged unlicensed debt 2/19/2020: Completed. Division of Banks First Deputy
(Woburn, Massachusetts) collection activity in Massachusetts related to (Consumer complaints Commissioner of
apparent phantom debt. reported in FTC Sentinel Banks
Database received on Massachusetts
8/13/2018 and 6/25/2019 Division of Banks
alleging attempted (617) 956-1523
collection activity). cindy.begin@mass.govMatter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
The Offices of Morgan and Moss Cease Directive: Date of action: Massachusetts Cynthia A. Begin, Esq.
Issued in response to alleged unlicensed debt 2/19/2020: Completed. Division of Banks First Deputy
(Newport Beach, California) collection activity in Massachusetts related to (Consumer complaint Commissioner of
apparent phantom debt. reported in FTC Sentinel Banks
Database received on Massachusetts
1/15/2020 alleging Division of Banks
attempted collection (617) 956-1523
activity). cindy.begin@mass.gov
Global Management Acquisition Cease Directive: Date of action: Massachusetts Cynthia A. Begin, Esq.
Firm, Inc. Issued in response to alleged unlicensed debt 12/02/2019: Completed. Division of Banks First Deputy
collection activity in Massachusetts related to (Consumer complaint Commissioner of
(Lawrenceville/Grayson/Norcross, apparent phantom debt. received on 9/12/2019 Banks
Georgia) alleging attempted Massachusetts
collection activity on Division of Banks
9/9/2019). (617) 956-1523
cindy.begin@mass.govMatter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
NEW MEXICO
State of New Mexico v. Capio Civil lawsuit: New Mexico’s complaint asserts claims Date of action: Office of the Attorney Matt Baca
Partners, LLC, Capio Asset under New Mexico’s Unfair Practices Act, the Fair 9/28/20: Complaint filed. General of New mbaca@nmag.gov
Servicing, LLC, Mark Detrick, Debt Collection Practices Act, and the Fair Credit Mexico
James F. Richards, Bob Hodges, Reporting Act against defendants’ collection Status of action:
The Law Offices of Mitchell D. operation. The complaint alleges defendants’ Pending.
Bluhm & Associates, LLC, operation collects medical debts using abusive
Mitchell Bluhm, and Donald collection practices including attempts to collect
Meisinger debts not owed and providing inaccurate information
to the credit bureaus.
U.S. District Court
District of New Mexico
(Duluth, Georgia/Sherman, Texas)
State of New Mexico v. LVNV Civil lawsuit: New Mexico filed a complaint in state Date of action: Office of the Attorney Matt Baca
Funding, LLC, Sherman court based on egregious collection practices and 9/18/2020: Complaint filed. General of New mbaca@nmag.gov
Financial Group LLC, Resurgent attempted collection of stale debts in breach of New Mexico
Capital Services, L.P., Robert Mexico’s Unfair Practice Act, including claims of Status of action:
Pierson, Donald Meisinger, Fraudulent Misrepresentation, Negligent Pending.
Guglielmo & Associates, and Misrepresentation, and Unjust Enrichment. New
Eliza Guglielmo Mexico has requested temporary and permanent
injunctive relief, disgorgement, restitution, and civil
Second Judicial District Court of penalties.
New Mexico
(Arizona, New Mexico, New
York, South Carolina)
State of New Mexico v. Central Civil lawsuit: In response to complaints about CMS, Date of action: Office of the Attorney Matt Baca
Mediation Services, Jay New Mexico filed a complaint in state court for 9/09/2020: Complaint filed. General of New mbaca@nmag.govMatter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
Camacho, and Ronald C. Serio violations of the New Mexico Unfair Practices Act. Mexico
CMS is alleged to have collected on debts not owed Status of action:
Second Judicial District Court of that it had no authority to collect and also to utilize Pending.
New Mexico abusive collection practices including threatening
consumers with false consequences such as charging
(Buffalo, New York) consumers with fraud, canceling their vehicle
registration, and filing lawsuits to garnish wages.
New Mexico has requested injunctive relief,
disgorgement, civil penalties, and restitution for
consumers in this lawsuit.
State of New Mexico v. Ability Cease & Desist Letter: On September 2, 2020, New Date of action: Office of the Attorney Matt Baca
Recovery Services Mexico ordered Ability Recovery Services to 9/02/2020: Sent Cease & General of New mbaca@nmag.gov
immediately cease and desist from engaging in Desist by certified mail. Mexico
(Scranton, Pennsylvania) business practices that violate the New Mexico
Unfair Practices Act (“UPA”), the New Mexico
Collection Agency Regulatory Act (“CARA”), the
Fair Debt Collection Practices Act (“FDCPA”), and
the Fair Credit Reporting Act (“FCRA”). Consumers
reported that Ability tried to collect debts not owed
and refused to review the validity of debts it tried to
collect.
NEW YORK
Civil lawsuit: (Special proceeding) with ex parte Date of action: New York State Office Sofia Quintanar
People of the State of New York,
Temporary Restraining Order in New York State 9/16/2020: Proceeding filed. of the Attorney
by Letitia James, Attorney
General for the State of New
Supreme Court, Erie County against Midway General sofia.quintanar@ag.ny.
York, v. Kenneth Thomas,
Resolution Services, LLC (d/b/a Greenland Date of related events: gov
Recovery), owners Kenneth Thomas and Wesley 9/18/2020: Temporary
Wesley Newman, Johnfredrick
Newman and certain collectors. Restraining Order. TRO https://ag.ny.gov/press-
Daniels, Jasmine Ashley Daniels, release/2020/attorney-
prohibits respondents from
Elizabeth Farnham, Midway general-james-moves-
The New York Attorney General is seeking to engaging in debt collection
Resolution Services LLC (d/b/a shut-down-illegal-
permanently ban all respondents from the debt or related activities. TROMatter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
Greenland Recovery Group), and collection industry, and seeking restitution, places a freeze on corporate debt-collecting-scheme
Jax Management Group LLC disgorgement, damages, civil penalties, costs and an respondents’ bank accounts
accounting. Respondent Thomas breached a prior and respondents’ service
810231/2020 Assurance of Discontinuance with our office, so as to provider.
New York Supreme Court him and his company (Midway) we are also seeking
Erie County relief for their breach of the AOD. Status of action:
TRO granted. Return date
(Erie County, New York)
The New York Attorney General alleges that for request for permanent
respondents used a call spoofing service to disguise injunction currently
their phone number to appear as consumers’ local scheduled for 10/22/2020.
county court or sheriff. Respondents claimed to be
process servers and/or court officials and falsely told
consumers that they would be arrested, subject to a
“pickup order” or bench warrant if they failed to call
the “underwriting attorney” and pay their debts.
Respondents also claimed that consumers would have
their license suspended and wages garnished.
Respondents made similar threats to consumer
debtors’ friends, family members and employers. The
New York Attorney General has thousands of call
recordings substantiating these allegations.
Two Actions filed jointly with the See entries under “Federal Trade Commission” New York State Office
Federal Trade Commission: (above). of the Attorney
General
FTC and State of New York v.
Hylan Asset Management, LLC,
&
et al.
& Federal Trade
FTC and State of New York v. Commission
Campbell Capital LLC, et al.
(cases filed jointly)Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
Two Actions filed jointly with the See entries under “Consumer Financial Protection New York State Office
Consumer Financial Protection Bureau” (above). of the Attorney
Bureau: General
CFPB and State of New York v. &
Douglas MacKinnon, et al.
& Consumer Financial
Protection Bureau
CFPB and State of New York v.
JPL Recovery Solutions, LLC, et
(cases filed jointly)
al.
In the Matter of Forster & Administrative action: Statement of Charges filed Date of action: New York State Sophia Kim
Garbus LLP against Forster & Garbus LLP for failing to comply 9/16/2020: Statement of Department of
with substantiation requirements under New York Charges filed. Financial Services public-
Offices of the Department of State law. affairs@dfs.ny.gov
Financial Services Related dates:
New York, New York In the statement of charges, the Department alleges Hearing scheduled for https://www.dfs.ny.go
that Forster & Garbus failed to comply with 1/12/2021 at the offices of v/reports_and_publicat
(Commack, New York) substantiation requirements in several ways, the Department of Financial ions/press_releases/pr2
including: failing to provide any substantiation; Services, New York, New 02009161
failing to provide substantiation within required York.
timeframes; and providing insufficient substantiation
by omitting, for example, underlying transaction
documents.
NORTH CAROLINA
State of North Carolina v. Civil lawsuit: Seeking injunctive relief, civil Date of action: North Carolina Laura
Turtle Creek Assets., LTD., penalties, restoration of money paid, and restitution. 7/10/2019: Complaint filed. Department of Justice Brewerlbrewer@ncdoj.
Turtle Creek Rentals LLC, gov
Royal Park Holdings, Inc. and
The lawsuit alleges that between 2012 and 2018,
Engle used his codefendant-debt collection Date of related events: (919) 716-6484
Gordon Scott Engle
companies to purchase unpaid consumer debt from 7/15/2019: TRO entered.Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
Aarons Inc. and since 2018, Engle has collected or 7/24/2019: Preliminary
No. 19-CVS-009339 attempted to collect on these unpaid debts from North injunction entered (still in
Wake County Superior Courts Carolina consumers. Engle’s companies are registered in effect).
Texas; he failed to file the appropriate registrations with https://ncdoj.gov/attorn
the North Carolina Secretary of State to operate in North ey-general-josh-stein-
(North Carolina and Texas) Status of action:
Carolina and also failed to obtain the necessary permits obtains-temporary-rest/
from the North Carolina Department of Insurance to Pending – case currently
operate as a collection agency. Engle’s companies sent stayed due to Gordon Scott
consumers collection notices telling them they had Engle’s criminal cases for
committed a criminal violation by failing to return rented felony debt collecting
property. The notices appeared to be, but were not, official without a license. (See NC
court notices. Some of the letters even included unsigned DOI actions.)
criminal summonses that appeared to be real, but did not
have any legal effect, and were delivered by Engle’s hired
private police officers. In addition to sending these
unsigned summonses, Engle and his companies also filed
hundreds of criminal complaints with misleading language
in several North Carolina counties that resulted in actual
criminal summonses being issued against customers.
State of North Carolina, North Criminal Actions: 81 Felony Counts of Failure to Secure Date of action: North Carolina Marla Sink
Carolina Department of Insurance Permit from Commissioner of Insurance – Debt Collecting 8/2020: Case was finalized Department of (919) 807-6017
v. Gordon Scott Engle DBA Turtle without a license, charged in 17 Counties – Victims in each at the State level. Insurance, Criminal Marla.Sink@ncdoi.gov
Creek of the 81 counts. Investigations
Status of action: https://www.ncdoi.gov
NC DOI Case 69525
Charged in 17 counties including: Currently Pending Court for /news/press-
Alexander, Anson, Burke, 17 North Carolina Counties. releases/2020/09/11/in
Cumberland, Davie, Guilford, Iredell, surance-commissioner-
Lee, Mecklenburg, Moore, causey-announces-
Richmond, Rowan, Stanley, Stokes, arrest-unlicensed-debt
Surry, Wilkes and Yadkin
(Cornelius, North Carolina)Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
NORTH DAKOTA
State of North Dakota v. Zaw Assurance of Voluntary Compliance: Based on Date of action: Consumer Protection Liz Brocker
Lwin aka Pat Lwin violation of NDCC ch. 51-15 (Consumer Fraud 9/07/2020: Order of Approval & Antitrust Division, (701) 328-2210
Law)(deceptive practices) and ch. 13-05 (Collection of Assurance of Voluntary Office of Attorney lbrocker@nd.gov
Civil No. 08-2020-CV-01994 Agencies Law)(failure to register as debt collector) Compliance entered by the General of North
Burleigh County District Court.
Burleigh County District Court Dakota
North Dakota Status of action:
Completed.
(El Monte, California)
State of North Dakota v. Cease & Desist Order: Based on failure to comply Date of action: Consumer Protection Liz Brocker
Portfolio Recovery Management with Civil Investigative Demand and based on 7/13/2020: Cease and Desist & Antitrust Division, (701) 328-2210
Inc. and Jason Jakubec, violation of NDCC ch. 51-15 (Consumer Fraud Order issued pursuant to Office of Attorney lbrocker@nd.gov
Individually, dba Karl Law)(deceptive practices) and ch. 13-05 (Collection N.D.C.C. §51-15-07 for General of North
violations of North Dakota law
Frankovitch Law Firm Agencies Law)(failure to register as debt collector). Dakota https://attorneygeneral.
and failure to comply with
Civil Investigative Demand. nd.gov/news/fraudulen
(New York, New York) t-out-state-debt-
Status of action: collectors-banned-
Completed. north-dakota
State of North Dakota v. IKS and Cease & Desist Order: Based on failure to comply Date of action: Consumer Protection Liz Brocker
Associates LLC and Karriem with Civil Investigative Demand and based on 7/13/2020: Cease and Desist & Antitrust Division, (701) 328-2210
Madison, Individually, dba violation of NDCC ch. 51-15 (Consumer Fraud Order issued pursuant to Office of Attorney lbrocker@nd.gov
Bradford Stevens and Associates Law)(deceptive practices) and ch. 13-05 (Collection N.D.C.C. §51-15-07 for General of North
violations of North Dakota law
Agencies Law)(failure to register as debt collector). Dakota https://attorneygeneral.
and failure to comply with
(Riverside, California) Civil Investigative Demand. nd.gov/news/fraudulen
t-out-state-debt-
Status of action: collectors-banned-
Completed. north-dakotaMatter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
State of North Dakota v. Global Cease & Desist Order: Based on failure to comply Date of action: Consumer Protection Liz Brocker
Management Acquisition Firm with Civil Investigative Demand and based on 7/13/2020: Cease and Desist & Antitrust Division, (701) 328-2210
Inc. and Walter Hargrove, violation of NDCC ch. 51-15 (Consumer Fraud Order issued pursuant to Office of Attorney lbrocker@nd.gov
Individually, dba Global Law)(deceptive practices) and ch. 13-05 (Collection N.D.C.C. §51-15-07 for General of North
Management Agencies Law)(failure to register as debt collector). violations of North Dakota Dakota https://attorneygeneral.
law and failure to comply nd.gov/news/fraudulen
(Lawrenceville, Georgia) with Civil Investigative t-out-state-debt-
Demand collectors-banned-
north-dakota
Status of action:
Completed.
State of North Dakota v. The Settlement agreement reached in which The Trilateral Date of action: Consumer Protection Liz Brocker
Trilateral Group, LLC and Group, LLC and Daniel Caldera agreed to comply 5/08/2020: Letter & Antitrust Division, (701) 328-2210
Daniel Caldera dba Alliance with NDCC ch. 51-15 (Consumer Fraud Agreement signed. Office of Attorney lbrocker@nd.gov
Litigation Associates Law)(deceptive practices) and ch. 13-05 (Collection General of North
Agencies Law) and cease any collection activity Status of action: Dakota
(Rancho Cucamonga, California) involving the North Dakota consumer that filed a Completed.
consumer complaint.
State of North Dakota v. Global Assurance of Voluntary Compliance: Based on Date of action: Consumer Protection Liz Brocker
Recovery Solutions, LLC violation of NDCC ch. 51-15 (Consumer Fraud 5/07/2020: Order of & Antitrust Division, (701) 328-2210
Law)(deceptive practices) and ch. 13-05 (Collection Approval of Assurance of Office of Attorney lbrocker@nd.gov
Civil No. 08-2020-CV-01617 Agencies Law)(failure to register as debt collector) Voluntary Compliance General of North
Burleigh County District Court entered by the Burleigh Dakota
North Dakota County District Court.
(Boca Raton, Florida) Status of action:
Completed.Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
State of North Dakota v. Assurance of Voluntary Compliance: Based on Date of action: Consumer Protection Liz Brocker
Brandon Wilson, Individually violation of NDCC ch. 51-15 (Consumer Fraud 4/21/2020: Order of & Antitrust Division, (701) 328-2210
and dba BHA and Bryant Hodge Law)(deceptive practices) and ch. 13-05 (Collection Approval of Assurance of Office of Attorney lbrocker@nd.gov
Associates LLC Agencies Law)(failure to register as debt collector). Voluntary Compliance General of North
entered by the Burleigh Dakota
Civil No. 08-2020-CV-01456 County District Court.
Burleigh County District Court
North Dakota Status of action:
Completed.
(Manchester, New Hampshire)
State of North Dakota v. Apex Assurance of Voluntary Compliance: Based on Date of action: Consumer Protection Liz Brocker
Business Solutions, LLC dba violation of NDCC ch. 51-15 (Consumer Fraud 1/08/2020: Order of & Antitrust Division, (701) 328-2210
Offices of Taylor and Michaels, Law)(deceptive practices) and ch. 13-05 (Collection Approval of Assurance of Office of Attorney lbrocker@nd.gov
and Joshua Neal Agencies Law)(failure to register as debt collector). Voluntary Compliance General of North
entered by the Burleigh Dakota
Civil No. 08-2020-CV-00050 County District Court.
Burleigh County District Court
North Dakota Status of action:
Completed.
(Rialto, California)Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
State of North Dakota v. Assurance of Voluntary Compliance: Based on Date of action: Consumer Protection Liz Brocker
Lakeshore Financial, LLC dba violation of NDCC ch. 51-15 (Consumer Fraud 1/08/2020: Order of & Antitrust Division, (701) 328-2210
LS Financial and Joel Williams, Law)(deceptive practices) and ch. 13-05 (Collection Approval of Assurance of Office of Attorney lbrocker@nd.gov
Individually Agencies Law)(failure to register as debt collector). Voluntary Compliance General of North
entered by the Burleigh Dakota
Civil No. 08-2020-CV-00051 County District Court.
Burleigh County District Court
North Dakota Status of action:
Completed.
(Rock Hill, South Carolina)
State of North Dakota v. Assurance of Voluntary Compliance: Based on Date of action: Consumer Protection Liz Brocker
Paramount Assets Protection violation of NDCC ch. 51-15 (Consumer Fraud 12/06/2019: Order of & Antitrust Division, (701) 328-2210
Services, LLC and Jeffrey Law)(deceptive practices) and ch. 13-05 (Collection Approval of Assurance of Office of Attorney lbrocker@nd.gov
Pusateri, Individually Agencies Law)(failure to register as debt collector). Voluntary Compliance General of North
entered by the Burleigh Dakota
Civil No. 08-2019-CV-03834 County District Court.
Burleigh County District Court
North Dakota Status of action:
Completed.
(Fort Mill, South Carolina)Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
OHIO
Civil lawsuit: Alleging violations of the Ohio Date of action: Ohio Attorney Bethany McCorkle
State of Ohio ex rel. Attorney
Consumer Sales Practices Act, including (1) 9/11/2020: Complaint filed. General’s Office and
General Dave Yost v. Advanced
Noncompliance with the FDCPA, (2) Engaging in Hannah Hundley
Capital Solutions, Inc.
harassing or abusive behavior, (3) Improper Status of action:
Stark County Court of Common communications with third parties, and (4) False, Pending. (614) 466-3840
Pleas misleading, and deceptive representations.
(Canton, Ohio)
SOUTH CAROLINA
Bureau of Consumer Financial Civil lawsuit: Alleging, among other activities, Date of action: South Carolina Bailey Parker
Protection; South Carolina unconscionable debt collection due to attempts to 2/20/2020: Complaint filed Department of
Department of Consumer collect money from consumers based on contracts seeking injunctive relief, Consumer Affairs (803) 734-4296
Affairs; and the State of that were invalid under South Carolina law. equitable monetary relief,
Arkansas Attorney General v. and civil money penalties. https://consumer.sc.go
Candy Kern-Fuller, Howard v/business-
Sutter III, and Upstate Law Status of action: resourceslaws/enforce
Group LLC Matter is pending. ment-actions
No. 6:20-cv-786
U.S. District Court
District of South Carolina
(Easley, South Carolina)
Bureau of Consumer Financial Civil lawsuit: Alleging, among other activities, Date of action: South Carolina Bailey Parker
Protection, and South Carolina unconscionable debt collection due to attempts to 10/01/2019: Complaint filed Department of
Department of Consumer Affairs collect money from consumers based on contracts seeking injunctive relief, Consumer Affairs (803) 734-4296
v. Katharine Snyder, that were invalid under South Carolina law. equitable monetary relief,Matter Name
Press Contact
Action Location Type of Action Date/Matter Information Responsible Agency
Press Release
(Company Location)
Performance Arbitrage and civil money penalties. https://consumer.sc.go
Company, Inc., and Life v/business-
Funding Options, Inc. Status of action: resourceslaws/enforce
Matter is pending. ment-actions
No. 6:19-cv-02794-DCC
U.S. District Court
District of South Carolina
(Greenville, South Carolina)
WASHINGTON
State of Washington vs. Civil lawsuit: Alleging that from January 1, 2013 to Date of action: Washington Attorney Dan Jackson
Convergent Outsourcing, Inc. February 23, 2015, Convergent sent over 75,000 6/25/2020: Complaint for General dan.jackson@atg.wa.g
collection letters to Washington consumers, and Injunctive and Other Relief ov
Case # 20-2-10463-9 SEA hundreds of thousands more to consumers in other filed.
King County Superior Court states, titled “Settlement Offer” that offered to
“settle” time-barred debts without disclosing that the https://www.atg.wa.go
(Renton, Washington) debts were legally unenforceable because the statute v/news/news-
of limitations had expired and, thus, made implied releases/ag-ferguson-
threats to sue consumers over legally unenforceable sues-debt-collection-
debts. agency-deceptive-
collection-letters-over-
The lawsuit asserts violations of (1) the Consumer old
Protection Act, RCW 19.86.020, (2) the Collection
Agency Act, RCW 19.16.250(16), and (3) per se
violation of the Consumer Protection Act, RCW
19.86.020—based on RCW 19.16.250(16)
The lawsuit seeks injunctive relief, civil penalties,
and consumer restitution.You can also read
