Source: www.crainsnewyork.com --- Friday, September 07, 2012
More than 100,000 New Yorkers could get their day in court after a federal judge granted them class-action status in a civil case the alleges they were victimized by a Debt-collection ring. The suit, brought by MFY Legal Services, the Neighborhood Economic Development Advocacy Project, and Emery Celli Brinckerhoff & Abady, charges that a robo-signing operation defrauded their clients of millions of dollars and violated federal racketeering and Debt collection laws. "This is a huge scheme that they've been running for years," said Susan Shin, a Neighborhood Economic Development Advocacy Project staff attorney. The case came to her organization's attention when alleged victims called its hotline. The defendants include Leucadia National Corp., a public corporation that Ms. Shin said buys debts for pennies on the dollar; Mel S. Harris and Associates, described by the suit as one of the largest Debt collection law firms in the state; and Samserv, Inc., a process serving company. "Default judgments were obtained with bogus affidavits," Ms. Shin said. Some debtors did not find out about the judgments until their wages were garnished, she added. Federal Judge Denny Chin granted the class-action status in a 42-page decision released by the plaintiffs Friday. ...
Source: http://feeds.crainsnewyork.com/~r/crainsnewyork/finance/~3/4GWAY2B76aM/120909929
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