NY RICO suit against Leucadia National and Mel Harris & Associates

Here we have a NY class action against the law firm Mel Harris & Associates, debt buyer Leucadia and its umpteen wholly-owned subsidiaries and the process server Samserv and its employees.

As so often happens, the plaintiffs allege “sewer service” (falsified affidavits of service) and that the attorneys submitted false affidavits.

Judge Chin did an excellent job describing what happened in his order:

The 12/29/10 NY District court judge Chin order

He denied the defendants’ motion to dismiss with a few exceptions and I highly recommend reading this order if you have been sued by a debt buyer.

Important issues addressed are TOLLING the statute of limitations for FDCPA violations.  If you haven’t been served and you didn’t know about the lawsuit, you obviously couldn’t sue when the violations occurred.

As a bonus, judge Chin did NOT dismiss the RICO claims.

After all, they engaged in the classic shakedown — the debt buyers, their attorneys and in this case the process servers conspired to get default judgments against consumers and then they garnished wages and raided bank accounts with fraudulently obtained judgments.

I could post about SEVERAL lawsuits against debt collectors, debt buyers and their attorneys every day, but I just don’t have the time.  But this one is worth watching.



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