Morgan Drexen to pay over $170M for illegal collection fees
The CFPB has announced a federal district court entered a final judgment<.a> against Morgan Drexen, Inc., a debt relief company, resolving a lawsuit filed by the CFPB in August 2013. The Bureau’s lawsuit alleged that the company charged illegal upfront fees and deceived consumers. The court found that the company violated federal law, prohibited Morgan Drexen from collecting any further fees from its customers, and ordered it to pay $132,882,488 in restitution and a $40 million civil penalty. The decision follows a stipulated final judgment against Morgan Drexen’s president and chief executive officer, Walter Ledda, that the court approved in October. The court also found that Ledda violated federal law, banned him from providing debt relief services, and required him to pay restitution and a civil money penalty. Two attorneys who took control of Morgan Drexen in July 2015 and continued the illegal activity were also held in contempt.