Not only did Chase forgive those debts, but they also agreed to remove the accounts from the credit reports.

How did it happen?

Hess Kennedy was a Florida law firm operating under numerous names and scamming consumers with large unsecured debts just like FDRS.  The only difference: they actually had licensed lawyers involved, unlike FDRS, and they also promised to eventually settle the debts.

Hess Kennedy even set up bank accounts for “Capital One”, “Chase” and “Discover” so that the debtors could make payments to their creditors while in fact Hess Kennedy got the funds and nothing went to the creditors.

Chase and Capital One sued Hess Kennedy and the countless entities and criminals involved, obtained default judgments against several defendants and finally settled with Laura Hess & Associates, P.A., Hess Kennedy Chartered LLC, The Consumer Law Center, LLC, Hess Kennedy Company Chartered, Consumer Recovery Team, Hess Kennedy Holdings Ltd., Legal Debt Center, Hess Kennedy Company, Laura Hess, Inc., Hess Kennedy, Legal Debt Center, LLC, Hess Kennedy Florida, Hess Kennedy Chartered, Hess Kennedy, LLC, Hess Kennedy Payment, Hess Kennedy Trust Company, The Consumer Law Center, LC, Hess Kennedy Florida, Hess Kennedy Trust Account, Global Payment Processing, LLC, and The Campos Chartered Law Firm.

I posted the complaint and some of the docs over a year ago at Chase sues debt eliminator Hess Kennedy, Hess sues Chase

Last night I looked up the case and since then spent quite a few hours reviewing the documents.  Truly fascinating.

The Florida Attorney General sued Hess Kennedy and got a receiver appointed.

They discovered an extremely elaborate scheme involving many bank accounts and millions of dollars had already been moved out of the country.  Consumer credit counseling agencies were getting paid big bucks for sending the business.

I’m sure that Mark Cella, the FDRS owner and “Dan Lyle” also took action to protect their loot.  Last year someone posted that supposedly the California AG froze their accounts, but obviously that’s not true.

This morning I called Gayle Weller who is supposedly investigating to find out what’s going on, but I only got her VM and left a message to call me back.

Because the FL AG froze the accounts, Chase received $4.4 million!

Chase settled the case against Hess Kennedy et al last month for “Four Million and Four Hundred Thousand Dollars ($4,400,000.00) (“Settlement Payment”) via certified funds by hand delivery to counsel for Chase within one (1) business day of the Receivership Court’s entry of an Order approving this Agreement, substantially in the form of Exhibit B (the “Approval Order”).”  Not bad!

Additionally, Chase will receive 33% of any funds recovered in the suit by the receiver against The Credit Exchange.

Isn’t the California Attorney General LIABLE for the consumers’ and banks’ losses because they FAILED to act on the complaints received about FDRS?

Chase also got all the FCBA disputes sent by Hess Kennedy to Chase VOIDED and consumers can NOT sue for any related FCBA violations.

And of course the defendants are prohibited from engaging in similar scams or any consumer / debt business in the future.  Please read the  Consent Judgment for details.

I posted some of the key Chase v. Hess Kennedy et al documents:

The docket case 08-CV-00121

7-29-08: Chase letter to judge re. receivership

Exh A: 7-17-08 FL AG motion for receivership

Exh B: 7-17-08 FL AG memorandum receivership

Exh C: 7-18-08 Order receivership

Exh D: 7-23-08 Laura Hess Bar suspension

7-16-09: Chase letter to judge re. settlement

Exh A: 7-13-09-Chase — Hess Kennedy settlement

Exh B: 7-16-09 Chase — Hess Kennedy consent judgment

7-21-09  dismissal of case

This was WELL worth Chase’s legal expenses because they not only got MILLIONS for debts most likely uncollectable, but they also have no liability for any FCBA violations and they won’t get any more disputes from Hess Kennedy et al.

Please note: If you get a 1099 from any creditor for forgiven debt after settling, you do NOT have to pay income tax on the forgiven debt if you were insolvent (you could have filed for bankruptcy) and if you are liable for income tax, it is ONLY assessed on the PRINCIPAL balance forgiven.  If the 1099 includes interest or fees (as usual), you can challenge it.  Please read the IRS publication for details.

So WHY are Household and Citi refusing to sue FDRS?

I recently posted my declaration filed in the case with Household suing a former FDRS client:

My declaration to have FDRS, Mark Cella, Herman Lewis and Kathy Quintos added to creditor suit

I’ll be posting attorney Hammerman’s response, OBJECTING to my client’s motion to add FDRS to the suit by Household for nonpayment of the debt.  Last week my client was served the summons for Citi and its attorneys at Seidberg Law have ALSO ignored his requests for assistance to go after FDRS to get PAID.

Maybe Chase had inside information from the FL AG and KNEW that millions of dollars were available?

Most likely, Capital One and Discover also got their share.  Are the SMALL banks getting anything?

BTW, I’m by no means advocating that consumers PAY their debts.

In fact, anyone (close to) judgment-proof should immediately STOP paying the banks for 2 reasons:

1)  Since the banks CREATE the money out of thin air when they fund loans, WE should be able to CREATE the money to pay them back out of thin air.

Until then, I see NO reason to repay these debts.

Video: Ellen Brown (Web of Debt) solution to California’s budget crisis: STATE owned bank

Do you think California will take Ellen’s advice and create a state owned bank like North Dakota so that it can enjoy a budget SURPLUS?

2) The big banks (Household, Citi, Chase, Wells Fargo, Capital One, etc.) are destroying the world.

Anyone with a conscience should refuse payment just like most people would refuse to repay loans made by Hitler because they oppose genocide.  We have a moral obligation to TRY to stop the bankers’ enslavement of everybody on the planet.

It may be too late.  The bankers own Obama and most senators, representatives and state goverments as well as just about all governments of the industrialized countries.

But why not at least give it at try?  You have NOTHING to lose if you are judgment-proof.

If you’re being sued after you paid ANY debt elimination company (FDRS is NOT the only scam):

I’m NOT an attorney and you don’t want to play attorney either.

HIRE an attorney if you can afford it.  But since you’re most likely NOT able to retain an attorney as you can’t even pay your bills, put up a fight.  Get YOUR side of the story on the record.

Be honest, tell the truth in plain English.   Explain what happened to the judge in your answer, motion to dismiss, to join FDRS and their people in the suit, or whatever you’re filing .

Copy the style of the filings from the ATTORNEYS’ filings, try to find YOUR court’s rules and check some other cases for samples at the courthouse.

Include the Chase v. Hess Kennedy complaint and the settlement, consent judgment and dismissal to prove that the creditors’ lawyers are LYING when they claim that their clients (banks) have no legal right to sue the scammers.

Additionally, you have the right to join any parties who misrepresented that they will settle or eliminate debts you’re later sued for.  Of course, also list your payment to scammers as an affirmative defense.

DO conduct discovery and make the banks ADMIT that they created the money and did NOT lend out depositors’ or investors’ funds.   Some free samples are posted at “Eliminating” your credit card debt (similar to FDRS). I could improve on the discovery questions,  but I don’t want to be prosecuted for the unlicensed practice of law.  Household attorney Hammerman already accused me of giving legal advice.   So I’ll wait until one of my creditors sues me and I’ll post my discovery requests then.

While I have encountered my share of corrupt judges, occasionally you may find a judge like Judge Mahoney:

Judge Mahoney’s 1969 orders in First National Bank of Montgomery v. Jerome Daly:

Excerpts:

Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, which are for all practical purposes, because of their interlocking activity and practices, and both being Banking Institutions Incorporated under the laws of the United States, are in law to be treated as one and the same bank, did create the entire $14,000 in money or credit upon its own books by bookkeeping entry. That this was the Consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created It. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note . . .

The Federal Reserve and National Banks exercise an exclusive monopoly and privilege of creating credit and issuing their notes at the expense of the public, which does not receive a fair equivalent. This scheme is obliquely designed for the benefit of an idle monopoly to rob, blackmail and oppress the producers of wealth. . . It has defied the lawfully Constituted Government . . .

Slavery and all its incidents, including Peonage, thralldom and debt created by fraud is universally prohibited in the United States. This case represents but another form of Slavery by the Bankers.

JUDGMENT AND DETERMINATION

1. That the Federal Reserve Banking Corporation is a United States Corporation with twelve banks throughout the United States. That the First National Bank of Montgomery is also a United States Corporation, incorporated and existing under the laws of the United States and is a member of the Federal Reserve System.

2. That because of the interlocking control activities, transactions and practices, the Federal Reserve Banks and the National Banks are for all practical purposes, in the law, one and the same.

3. As is evidenced from the book “The Federal Reserve System; Its purpose and Function”, put out by the Board of Governors of the Federal Reserve System and other evidence adduced herein, the Federal Reserve Banks and National Banks create money and credit upon their books and exercise the ultimate of expanding and reducing the supply of money or credit in these United States.

This creation of money or credit upon the Books of the Banks constitutes the creation of fiat money by bookkeeping entry.

Ninety percent or more of the credit never leaves the books of the Banks so they need produce no specie as backing.

When the Federal Reserve Banks and National Banks acquire United States Bonds and Securities, State Bonds and Securities, State Subdivision Bonds and Securities, mortgages on private Real property and mortgages on private personal property, the said banks create the money and credit upon their books by bookkeeping entry. The first time that the money comes into existence is when they create it. The banks create it out of nothing. No substantial fund of gold or silver is back of it, or any fund at all . . .

MOST important for your defense if a bank sues you:

C. The sole consideration paid for the One Dollar Federal Reserve Notes is in the neighborhood of nine-tenths of one cent, and therefore, there is no lawful consideration behind said Notes.

And that’s if they actually paid for PRINTED money. Most debt is created by accounting entries.