Receiver’s Update January 10, 2013
Notice to Immediately Return Any Unexpended Costs to Receiver
This notice is directed to attorneys who have represented Commercial Recovery Authority, Inc. (“CRA”), Rumson Bolling & Associates (“RBA”), or Commercial Investigations, Inc. (“CII”) as the assignee of various debts. These cases were “forwarded” to you by either The Forwarding Company or Network Forwarder.
We understand that counsel may continue to hold funds advanced for costs. If you hold any funds as unexpended costs for CRA, RBA, or CII, please remit them immediately to the Office of the Receiver, payable to “FCMS Receivership,” to the following address:
Thomas W. McNamara, Receiver
c/o Ballard Spahr LLP
655 West Broadway, Suite 1600
San Diego, CA 92101
If you have specific questions, you may contact the Receiver’s office at 619-696-9200 or email@example.com.
Receiver’s Update – December 6, 2012
The FTC has now reached settlements of its claims against all remaining Defendants. That settlement is still subject to the approval of the full Commission, which is reviewing the terms of the settlement. Once the settlement is approved and formal judgments are entered, we will be in a position to give more detailed direction to creditors and debtors. We expect this to take place by early January, 2013. We should also be in a position to provide direction to consumers as to whether, and to what extent, the FTC will be implementing any procedures for consumer redress.
Receiver's Update - May 31, 2012
The Receiver has completed the move out from the
Friar Street offices previously occupied by Defendants’ debt collection business. As required by the Court’s Order, the business remains suspended and inoperative, pending trial of the FTC’s claims against Defendants which is now set for January, 2013. Consistent with the Court’s Order, furniture and equipment have not been liquidated, but have been stored. All paper and electronic records have also been placed in an accessible storage facility in Van Nuys.
As set forth in the Receiver’s March 29, 2012 update below, the Receiver’s office sent letters to creditor clients providing an opportunity to opt out of their assignment arrangement with Defendants and sent letters to attorneys to whom cases have been forwarded for collection and confirmed that such collection cases remain stayed by the original receivership order.
For consumers and attorneys with specific questions, please send them to firstname.lastname@example.org.
For most general questions, check the Frequently Asked Questions (“FAQs”) link on this website.
Receiver’s Update - March 29, 2012
Notice To Creditor Clients
The Receiver sent out a letter to all creditor clients explaining the right to opt out of your Debt Assignment Agreement with Receivership Defendants. To see a sample of this letter, click here. To download a copy of the Notice of Opt Out from Debt Assignment Agreement, click here.
Notice To Attorneys Representing Creditor Clients
In light of the Court's Minute Order entered February 28, 2012, the Receiver sent out a follow-up letter to his previous letter of December 13, 2011 to all attorneys representing creditor clients, further explaining the handling of cases forwarded from Receivership Defendants. To see a copy of this letter, click here.
Receiver's Update - March 27, 2012
The Receiver has filed a First Interim Report to the Court to update the Court on the current status of the receivership and steps taken since the Court’s Minute Order of February 28, 2012. To read this report, click here. In summary:
(1) The receivership is in the process of moving out of the Friar Street site with furniture, equipment and records to be stored until the FTC case is resolved.
(2) Since the Receivership Defendants’ debt collection business is inoperative, we will communicate directly with creditor clients and give them an opportunity to opt out of their debt assignments with Receivership Defendants. Many creditor clients have presumably already done so as a form of self-help.
(3) The Receiver will communicate directly with attorneys to whom collection cases were forwarded, again alerting them that such cases are stayed by the Preliminary Injunction.
If you have specific questions about your situation, you may send your questions to email@example.com.
Receiver's Update - March 20, 2012
The Court has now ruled on the Receiver’s application to wind down the business and vacate the Van Nuys business premises. In a Minute Order filed February 28, 2012, the Court granted the motion, in part, and denied the motion, in part. The Court found that “the suspension of business operations and release of all employees are appropriate.” The Court ordered that “(1) Defendants’ business should remain inoperative, (2) Defendants’ lease on office space at 14532 Friar Street should be terminated, and (3) Defendants’ office furniture and equipment should not be liquidated, but rather placed in storage by the Receiver.” Click here to read a copy of the Minute Order. The Receiver will now proceed to move the business out of the Friar Street location and, as economically as possible, store furniture, equipment, and records at a nearby storage facility. That process should be completed by the end of March.
Pursuant to the Court’s Order, the business will remain “inoperative.”
Two of the named Defendants – Frank Lindstrom and Kevin Medley – have stipulated to Final Judgments in favor of the FTC and those Judgments were entered by the Court on March 14, 2012.
Following a Status Conference on March 12, 2012, the Court set a jury trial for January 8, 2013 as to the remaining Defendants.
For debtor clients and attorneys to whom cases were forwarded, who have specific questions, please send your questions to firstname.lastname@example.org. The Receiver will also be communicating directly with creditors and counsel.
Receiver's Update – February 15, 2012
NOTICE to Employees Regarding W-2s.
Please notify us if you have moved.
Paychex has sent W-2 forms for 2011 to all employees. However, some are being returned to the Receiver’s office as undeliverable due to address changes. If you have not received your 2011 W-2, and/or have moved, please advise us immediately by sending an email to email@example.com or calling our office at 619-696-9200 and asking for Randi Pealer.
Receiver’s Update – January 15, 2012
The Receiver has now filed a formal motion with the Court for authorization to implement a formal wind down of the Defendants’ businesses. That motion is set for hearing on February 13, 2012 at 9:00 a.m. This motion will substitute for the Receiver’s previous ex parte application for approval of a wind down, which has not been ruled on by the Court. Click here to read the motion.
If this motion is approved, the receivership team will immediately publish and implement specific procedures for a wind down as to creditors, debtors, and attorneys to whom Defendants forwarded collection cases. In the meantime, we will respond as best we can to specific questions which may be submitted to firstname.lastname@example.org or by calling the Receiver’s office.
Receiver’s Update – December 9, 2011
The debt collection operations of the Defendants remain suspended. The Receiver’s Application for approval to implement a wind down of the business has not yet been approved by the Court. We appreciate that the lack of specifics as to the future of individual creditor claims is frustrating. The Receiver’s office will take all steps possible to secure Court approval for the wind down plan which will include specific directions to creditors and attorneys for creditors as to how they may deal with collection of individual debts going forward. In the meantime, we will address and resolve specific situations as they arise. If you are a creditor with a claim assigned to Defendants or an attorney who was forwarded a claim, you may send specific questions to the Receiver at email@example.com and we will respond as quickly as possible. You may also review the answers to Frequently Asked Questions posted on this website.
October 26, 2011
The Receiver has asked the District Court to approve the Receiver's plan to implement an orderly wind down of Defendants' businesses which would include communication with clients, attorneys, and other involved parties. Click here to read the Ex Parte Application filed by the Receiver to Approve Wind Down. The Defendants have opposed this request. Once the Court decides this issue, we will post further updates to the website.
October 5, 2011
Notice to clients and attorneys representing clients in collection matters.
The Receiver will shortly begin an orderly wind-down of the Defendants’ businesses. We appreciate that clients want to know what will happen to debts they assigned to Defendants for collection, including debts that Defendants “forwarded” to attorneys for litigation. Attorneys who received cases from Defendants also want to know how they proceed if Defendants, as the middleman, are no longer in business.
All of these and other operational issues will be addressed as we begin to implement the wind-down process. Please be patient – we will post further details on this website during the week of October 10, 2011 and will also be communicating directly with clients and counsel.
September 30, 2011
As of September 29, 2011, the Court has unsealed the court file in this matter and we can now publicly report the details of the FTC’s case and the status of the receivership. By an Order entered September 27, 2011, the Court entered a Preliminary Injunction which includes all the provisions of the earlier TRO and Asset Freeze, except that those provisions are no longer temporary. The Preliminary Injunction Order also makes the receiver the Permanent Receiver. Click here to read the Preliminary Injunction.
The Receiver filed a Preliminary Report on September 26, 2011 which includes his conclusion that this business can not be operated lawfully going forward. Click here to read that report. Given this conclusion, the Receiver’s earlier temporary suspension of operations is no longer temporary.
We will post further updates as the Receiver confirms and implements an operational plan for unwinding the business.
September 16, 2011
On September 12, 2011, the Federal Trade Commission filed an action against the defendants named above alleging that the defendants' third party debt collection business violated various provisions of the FTC Act and the Fair Debt Collection Practices Act. Click here to read a copy of the Complaint.
On September 13, 2011, the Court entered a Temporary Restraining Order with an Asset Freeze and Appointment of Receiver. The Court has set September 26, 2011 as the date on which it will consider whether to enter a preliminary injunction. Click here to read a copy of the TRO.
On September 15, 2011, the court-appointed Receiver took possession of the business and has temporarily suspended operations. The Receiver has established this website as a vehicle to communicate information about the case and the receivership's activities. We will post regular updates as developments merit.