Consumer Financial Protection Bureau v. The Mortgage Law Group, LLP et al

Filing 420

JUDGMENT in favor of Consumer Financial Protection Bureau against The Mortgage Law Group, LLP, Jason E. Searns, Jeffrey J. Aleman, Thomas G. Macey, Consumer First Legal Group, LLC, Harold E. Stafford in the amount of $59,003,271.78. (WMC /PAO)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WISCONSIN
CONSUMER FINANCIAL
PROTECTION BUREAU,
Plaintiff,

Case No. 14-cv-513-wrnc

V.

THE MORTGAGE LAW GROUP, LLP,
CONSUMER FIRST LEGAL GROUP,
LLC, THOMAS G. MACEY, JEFFERY J.
ALEMAN, JASON E. SEARNS and
HAROLD E. STAFFORD,
Defendants.

JUDGMENT IN A CIVIL CASE

IT IS ORDERED AND ADJUDGED that judgment is entered in favor of
plaintiff Consumer Financial Protection Bureau against defendants The Mortgage
Law Group, LLP, Consumer First Legal Group, LLC, Thomas G. Macey, Jeffery J.
Aleman, Jason E. Searns and Harold E. Stafford as follows:

A Restitution in the following amounts
1. Defendants TMLG, Macey, Aleman, and Seams are jointly and severally liable
for restitution in the amount of $18,716,725.78 with respect to the advance
fees that TMLG collected from consumers, payable within 30 days to the
Bureau to be disbursed on a pro rata basis to the extent practical (or otherwise
as the court might approve in the future).
2. Defendants CFLG, Macey, and Aleman Seams are jointly and severally liable
for restitution in the amount of $2,897,566 with respect to the advanced fees
that CFLG II collected from consumers, payable within 30 days to the Bureau
to be disbursed on a pro rata basis to the extent practical (or otherwise as the
court might approve in the future).

Judgment in a Civil Case

Page 2

3. Defendants Stafford and CFLG are jointly and severally liable for restitution in
the amount of $94,730 with respect to the advanced fees that CFLG I collected
from consumers, payable within 30 days to the Bureau to be disbursed on a pro
rata basis to the extent practical (or otherwise as the court might approve in the
future).
4. To the extent that any portions of the restitution amounts paid cannot

reasonably be returned to consurners by the Bureau within one year of receipt,
then the excess -minus any reasonable costs incurred by the Bureau in
implementing the restitution award-shall be applied toward the civil penalties
assessed against defendants, with the remainder, if any, reverting to defendants.
B. Defendants are directed to pay civil penalties to the Bureau in the following
amounts on or before 30 days from date of this order. These amounts represent
civil penalties owed to the United States pursuant to 12 U.S.C. § 5565(c) and are
not compensation for actual pecuniary loss and, therefore, are not subject to
discharge under the Bankruptcy Code pursuant to 11 U.S.C. § 523(a)(7).
1. Macey in the amount of $11,350,000.
2. Aleman in the amount of $14,785,000.
3. Seams in the amount of $8,002,500.
4. Stafford in the amount of $35, 250.

5. CFLG in the amount of $3,121,500.
C. No interest shall accrue on the ordered payments if timely made. In the event of
any default in payment, the entire unpaid amount shall constitute a debt due and
immediately owing and post-judgment interest shall be assessed from the date of
this order until payment is made as set forth in 28 U.S.C. § 1961.
D. An injunction pursuant to Federal Rule of Civil Procedure 65 is also ENTERED
under the following terms and conditions:
1. Defendants Macey, Aleman, Searns, and CFLG are permanently enjoined from
marketing, selling, providing, offering to provide, and assisting others to
market, sell, provide, or offer to provide, any mortgage assistance relief
products or services as defined in 12 C.F.R. § 1015.2, and any debt relief
products or services as defined in the Telemarketing Sales Rule, 16 C.F .R.
§ 310.2(0); and

Judgment in a Civil Case

Page 3

2. Defendant Stafford is enjoined for five years from marketing, selling,
providing, offering to provide, and assisting others to market, sell, provide, or
offer to provide, any mortgage assistance relief products or services as defined
in 12 C.F.R. § 1015.2.

Approved as to form this

tf.-1.11\day of November, 2019.

am M. Conley
ict Judge

I

Peter Oppeneer, Clerk of Court

II

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Date