A federal court has issued a temporary halt to a phantom debt collection scheme and frozen its assets following a lawsuit by the Federal Trade Commission (FTC). The scheme, which operated under various names such as Blackrock Services, Blackstone Legal Group, and others, allegedly involved sending deceptive letters and making threatening phone calls to consumers.
The FTC's complaint identifies Ryan and Mitchell Evans as the operators behind this scheme. According to the complaint, debt collectors associated with their companies falsely claimed that consumers owed debts and threatened legal action, wage garnishment, negative credit impacts, or arrest if payments were not made. These claims were reportedly baseless.
Further allegations state that consumers received communications suggesting they owed money to payday lenders. These messages warned of imminent lawsuits from purported law firms unless payments were made. The complaint asserts that these threats included false warnings about wage garnishment and other severe consequences.
The defendants allegedly used sensitive personal information in their communications to lend credibility to their claims. Websites linked to the bogus debt collection companies reinforced these threats with false warnings about potential legal actions against consumers.
The FTC accuses the defendants of violating rules against impersonating government entities or businesses and failing to comply with requirements of the Fair Debt Collection Practices Act. This includes neglecting to disclose themselves as debt collectors when contacting consumers.
The FTC seeks a court order to cease these unlawful practices and provide compensation for affected consumers. The commission unanimously voted 4-0 in favor of filing the complaint in the U.S. District Court for the Central District of California.
Quinn Martin and Jason Sanders from the FTC’s Bureau of Consumer Protection are leading this case. The outcome will be determined by the court based on whether there is sufficient reason to believe laws have been violated.
The Federal Trade Commission emphasizes its role in promoting competition while protecting consumer interests without demanding money or making threats. Consumers can learn more about related topics at consumer.ftc.gov or report fraudulent activities at ReportFraud.ftc.gov.
