AG's Office Sues Defunct Debt Collector for $456K Unpaid Fine
Earnest Earvin IV and Zenith Financial Group were shut down by Georgia's consumer protection agency in 2015 and agreed to pay $460,000 in fines. A petition to enforce the judgment says less than $4,000 of that obligation was met.
January 31, 2018 at 06:26 PM
3 minute read
The owner of a collections agency that was shut down in 2015 and forced to write off more than $3 million in debt by Georgia's consumer protection agency is now the subject of a collection action himself after failing to pay nearly a half-million dollars in fines.
A petition to enforce judgment filed Monday by the office of Attorney General Chris Carr said Earnest Earvin IV, owner of the now-defunct Zenith Financial Group, agreed to pay $460,000 as part of a compliance agreement with what was then the Governor's Office of Consumer Protection.
The agreement stipulated that Earvin would make 36 monthly payments of $416.66 and a final payment of $445,000. He also agreed to stay out of the debt-collecting business for five years. Under the terms of the agreement, the final payment of $445,000 would be waived if Earvin lived up to the rest of agreement.
Instead, he only made eight months' worth of payments totaling $3,742, leaving a balance owed of $456,257. Zenith was administratively dissolved by the Secretary of State's office at the end of 2015.
The consumer protection agency was placed under the aegis of the AG's office in 2015, and the petition includes an October 2016 letter from Assistant AG Christine Hom giving Earvin 10 days to explain why he should not be held in default. Earvin never responded.
The petition asks for Earvin and Zenith to be held jointly and severally liable for the outstanding debt.
A spokesman for Carr said there would be no comment on the pending litigation, and neither of two phone numbers apparently belonging to Earvin was functional.
As detailed in the 2015 consent order, Earvin and Zenith were accused of violating the Georgia Fair Business Practices Act by threatening consumers with arrest or imprisonment and concealing that its collectors were contacting consumers to collect a debt.
The agreement required Zenith to write off more than $3.1 million in debt from 9,259 accounts.
Between May 2013 and the time of its closure, Zenith was the subject of 33 Better Business Bureau complaints, many involving calls to homes or workplaces from people identifying themselves as “investigators” or “detectives,” who sometimes threatened recipients with criminal warrants, arrest or physical violence.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllFowler White Burnett Opens Jacksonville Office Focused on Transportation Practice
3 minute readOn The Move: Polsinelli Adds Health Care Litigator in Nashville, Ex-SEC Enforcer Joins BCLP in Atlanta
6 minute readWoman's Suit Alleging Negligence to Sex Trafficking by Hotel Tossed by Federal Judge
Trending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250