Shortly after certifying a class action against The Estate Plan, a company accused of preying on senior citizens in Texas and Arkansas, U.S. District Judge Harry F. Barnes granted plaintiffs a default judgment for more than $16 million.
The Estate Plan and other living trust sellers are facing allegations of "masquerading as qualified financial advisers, estate planners, lawyers, and paralegals" to "exploit and prey" upon senior citizens with the creation and selling of "unnecessary and often useless" living trusts.
The original class action was filed against 12 defendants in the Circuit Court of Miller County, Ark., on Dec. 19, 2007, and transferred to the Texarkana Division of the Western District of Arkansas on Feb. 5, 2008.
Plaintiffs allege the defendants created and sold living trusts as part of a scheme to gain access to senior citizens' financial information in order to then sell annuities and other financial products.
Defendants are accused of fraud, unauthorized practice of law, negligence, breach of fiduciary duty and conspiracy.
One of the defendants, The Estate Plan, was severed from the original lawsuit on June 12, 2008, after failing to answer the complaint which resulted in the default judgment.
The final judgment orders The Estate Plan to pay approximately $2.5 million in compensatory damages, $10 million in exemplary damages, $4.16 million in attorney fees, non -taxable costs, and post-judgment interest.
Full Article and Source:
$16 M default judgment entered against seller of living trust
The Estate Plan and other living trust sellers are facing allegations of "masquerading as qualified financial advisers, estate planners, lawyers, and paralegals" to "exploit and prey" upon senior citizens with the creation and selling of "unnecessary and often useless" living trusts.
The original class action was filed against 12 defendants in the Circuit Court of Miller County, Ark., on Dec. 19, 2007, and transferred to the Texarkana Division of the Western District of Arkansas on Feb. 5, 2008.
Plaintiffs allege the defendants created and sold living trusts as part of a scheme to gain access to senior citizens' financial information in order to then sell annuities and other financial products.
Defendants are accused of fraud, unauthorized practice of law, negligence, breach of fiduciary duty and conspiracy.
One of the defendants, The Estate Plan, was severed from the original lawsuit on June 12, 2008, after failing to answer the complaint which resulted in the default judgment.
The final judgment orders The Estate Plan to pay approximately $2.5 million in compensatory damages, $10 million in exemplary damages, $4.16 million in attorney fees, non -taxable costs, and post-judgment interest.
Full Article and Source:
$16 M default judgment entered against seller of living trust
Ihave not heard of this before and it's obviously a big, big story.
ReplyDeleteAnd a great victory!
This is great! Making them pay ---getting in their pockets --- is the only way!
ReplyDeleteGoody! It's so good to see accountability!
ReplyDeleteIt's not often that we get to see them get what they deserve. This is a good one to celebrate!
ReplyDeleteYes, a celebration is in order for this victory!
ReplyDeleteI am noping The Estate Plan pays the judgement and then closes their doors.
ReplyDeleteHope thsi serves as a warning to other scammers.
ReplyDelete