James R. Wall, et al. v Debt Relief Group LLC, et al.
Debtors File Class Action Alleging Attorneys Conspired to Defraud
In a federal class action suit filed on Aug. 6, the plaintiffs allege two Texas lawyers conspired with others to defraud debtors who sought help because of credit card and unsecured debt and to "evade" Texas laws that regulate consumer debt management services, attorney-client solicitation and lawyer advertising.
"By masquerading as attorney referral services, unregulated debt negotiators and exempt attorneys, the defendants collaborate to evade strict state consumer protection regulations enacted to protect unknowing debtors," the plaintiffs allege in James R. Wall, et al. v. Debt Relief Group LLC, et al., filed in the U.S. District Court for the Western District of Texas.
Plaintiffs' attorney Charles E. Ames of Carrollton, Texas, says the plaintiffs did not get the debt relief they expected.
The two Texas lawyers named as defendants in the plaintiffs' original class action complaint are Robert Ancel Palmer III and Scott R. Seideman.
The defendants also include Debt Relief Group LLC (DRG) of Irvine, Calif.; The Palmer Firm of Dallas and Irvine, Calif., and its registered agent in California, attorney Gregory M. Fitzgerald; The Seideman Law Firm of Dallas and Irvine, Calif.; Epic Financial Management of Irvine, Calif., and its registered agent Keith J. Waring; and Joan Kearns of Irving, Texas.
The plaintiffs, three residents of San Antonio, bring a participatory liability-conspiracy cause of action against all the defendants and also bring causes of action under the Debt Management Services Act, which is Chapter 394 Subchapter C of the Texas Finance Code. The plaintiffs allege the defendants failed to register with the Texas Office of the Consumer Credit Commissioner.
The plaintiffs allege in the complaint that the defendants run a nationwide operation "promoted by television and internet advertising to defraud debtors that are drowning in credit card and unsecured debt." They allege that each defendant has violated provisions of the Debt Management Services Act and that the plaintiffs' contracts with DRG and The Palmer Firm are void because they violate 394.215(a) of the Texas Finance Code.
Plaintiffs James R. Wall, Vickie L. Wall and James W. Bagby allege that around 1995 Seideman and his firm "conceived, developed and copyrighted" a group of debt management forms used by other defendants to defraud debtor-clients. They allege the DRG attorney-client agreement is one of the forms copyrighted by Seideman, and it was created to give potential debtor-clients "the false impression of services to be provided and the aura of legitimacy." They allege that Epic Financial Management, operating closely with DRG, and Waring "functioned as the solicitation and intake processor" for the debtors who were referred to The Palmer Firm.
The plaintiffs allege that, according to State Bar of Texas records, neither The Palmer Firm nor The Seideman Law Firm applied for approval to advertise through www.debtreliefgroup.net, www.debtreliefgroup.net or www.debtreliefgroup.info.
The plaintiffs seek certification under Federal Rule of Civil Procedure 23 for a class that is comprised of all U.S. consumers who are or were debtors who executed a client agreement with DRG and a legal services agreement with The Palmer Firm for the purpose of negotiations to settle debt.
The plaintiffs seek unspecified actual damages, treble damages, statutory damages and penalties, attorney fees, and prejudgment and post judgment interest.
The suit is assigned to U.S. District Judge Orlando L. Garcia in San Antonio.
For more information please contact:
Charles E. Ames
3811 Turtle Creek Boulevard
Dallas, Texas 75219
Phone: (214)443-8000
Fax: (214)443-8010
Website: www.misko.com
Email: ames (at) misko.com
