Debt collection firm Blackstone Legal and its owners, Ryan and Mitchell Evans, are facing a permanent ban from the debt collection industry. This follows a lawsuit by the Federal Trade Commission (FTC) accusing them of deceiving and harassing consumers to collect non-existent debts.
In February 2025, the FTC charged Blackstone Legal with running an operation that misled consumers into paying fake debts. Consumers were falsely warned about impending lawsuits, potential credit damage, and wage garnishments, resulting in millions of dollars lost.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated: “This operation collected on false debt and harassed consumers with fake threats of lawsuits and damaged credit if they refused to pay.” He emphasized that such scams harm consumers and undermine legitimate debt collection activities.
The defendants have agreed to a proposed settlement order with the FTC which includes:
- A permanent ban from the debt collection industry for all defendants.
- Prohibition against making material misrepresentations about any goods or services they sell or market.
- A ban on using false representations to obtain consumers’ financial information or impersonating any business.
- A requirement for defendants to surrender substantially all their assets, including bank and investment accounts.
The order imposes a total monetary judgment of $8,254,368. This is partially suspended due to the defendants' inability to pay in full. If they are found to have misrepresented their financial status to the FTC, the full amount will become immediately payable.
The Commission's vote approving the stipulated final order was unanimous at 3-0. The proposed order has been filed in the U.S. District Court for the Central District of California.
It is important to note that stipulated final orders or injunctions gain legal force once approved by a District Court judge.
Quinn Martin and Jason Sanders from the FTC’s Bureau of Consumer Protection served as staff attorneys on this case.
The Federal Trade Commission aims to promote competition while protecting and educating consumers. It does not demand money or make threats. For more consumer-related topics or reporting fraud, visit consumer.ftc.gov or ReportFraud.ftc.gov. Stay updated with FTC news through social media alerts and blogs.
