Cuomo Files Civil and Criminal Charges Against Debt Collectors for Fraud on Courts

Pretender lenders and lawyers for pretender lenders should take warning. The operation described in this article is virtually identical to the operation used by pretender lenders. See also LENDER LIABILITY pdf

July 23, 2009

N.Y. Claims Collectors of Debt Used Fraud

Tens of thousands of New York consumers had money seized by creditors using court orders that had been obtained by fraud, the state’s attorney general said Wednesday — and the money should be returned.

According to a lawsuit filed on Tuesday in New York Supreme Court in Buffalo, lawyers and debt collectors obtained more than 101,000 court orders that were improperly issued, allowing them to seize, on average, $5,474 from each consumer.

The lawsuit asserts that consumers were never properly notified and were not given a chance to defend themselves in court; creditors won default judgments. The total amount of money seized exceeded $500 million, according to the attorney general’s office.

“Our legal system is defined by due process and the guarantee that every New Yorker will get the chance to defend him or herself in court,” Andrew M. Cuomo, the attorney general, said in a statement. Not providing notice of legal proceedings, “undermined the foundation of this system.”

The two collections agencies and 35 lawyers and law firms named in the lawsuit, which lawyers for Mr. Cuomo’s office filed on behalf of the state’s chief administrative judge, Ann Pfau, all used one company, American Legal Process, of Lynbrook, N.Y., to notify consumers of debt collection proceedings.

But American Legal Process did not give people proper notice and instead “repeatedly and persistently falsified” statements that it had, according to the attorney general. In thousands of cases, a lawyer for Mr. Cuomo’s office stated in a court filing, individual American Legal Process employees claimed to have delivered notices of collections proceedings to different people in different locations at the same time.

When consumers did not appear in court, lawyers for creditors obtained court orders allowing them to take consumers’ money directly from bank accounts or to garnish wages.

A lawyer for American Legal Process, Corey Winograd, did not immediately return calls.

The attorney general brought criminal charges against American Legal Process and its chief executive, William Singler, in April. Those proceedings are continuing, according to Mr. Cuomo’s office.

12 Responses

  1. I beat them at their own game. 7-15-2011 Deutsche trustee. I had them caught in Fraud. They filed a foreclosure on me. I file a motion to dismiss. They filed a motion to dismiss and they did. lol I going to sue the living sh–t out of them and Bank of America

  2. Please put me on the list for Deutsche Bank Class Action .

  3. Please put me on the list.

  4. I need legal advice. I’m currently involved in a lawsuit pro se against four defendents who are major players in this sub prime mess. Ameriquest Mortgage was the Lender, with direct ties to Duetsch Bank, I need to know what Ohio Law says about the right to collect damages from It’s Parent company. I have a Case and I need fast answers.

    Please feel free to call.


    Dawn Heller

  5. i was in jail when they foreclosed on my home, how can i get it back.

  6. Want to get on Deutsche Bank class action. Have many things to contribute.

  7. put your comments here when the list is ready I will contact you to put you with a lawyer, if I can

  8. I would like more information on how to get on the list

  9. So are lawyers going to be putting lawyers in jail is my question? This seems like the game playing the game to show face. Wow look at what we are doing for you the poor poor consumer. What is it to fine a corporation or to shut one down a corporation? Its just a matter of switching the paperwork around and bam we have another one in its place. I say we have a long way to go and Im with it all the way, but WWE type lawsuits like this wont fool the elect few who are reading this thing close up. Oh by the way, any body ever seen a license to practise law ?

  10. Mario by the way they did get over $6,000,000,000.00 of our tax dollars. I think they do owe us money!!!!!!

    class action any one????

  11. Mario, I am glad and elated. Let’s do this!! Deutsche Bank needs to be taught another lesson. I don’t know how or why they are allowed to get away with so much s–t. Count me in, PLEASE. Let’s not forget to include their Attorney Law Firms, Servicers, Brokers, Appraisal
    Company and everyone that has anything and anyoneto do with
    Deutsche Bank; their parents, children, cousins, aunts, uncles, neices, nephews, grandchildren, dogs and cats. (Do you get my drift?)

  12. Yes, this is truly a wonderful start, I think now is the time to do a Deutsche Bank Class Action. Please contact me if you would like to get on the list.

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