Debt collectors sued for $1.3 million   (Most Recent Consumer Letters Below)

A Jacksonville agency was probed after 130 complaints were filed.  By J. Taylor Rushing, Capital Bureau Chief

TALLAHASSEE - A Jacksonville debt collection agency was sued for more than $1.3 million Monday by State Attorney General Bill McCollum on claims the agency was impersonating attorneys and state officials, threatening arrests and collecting excessive fees.

The lawsuit was filed in Duval County against Bass Prelitigation Services Inc.; a related company, Jackson Phillips & Associates; and the owners of both firms, Frank and Evelyn Jackson.

It seeks an unknown amount in restitution payments plus $1.3 million in penalties, or $10,000 for each violation of Florida's Deceptive and Unfair Trade Practices Act, plus dissolution of the companies and a permanent injunction against future collection businesses.

The Times-Union did not receive a response to two messages left with company receptionists Monday.

A total of 130 complaints about the company have been received by the attorney general's Economic Crimes Division since January 2006, with most coming since October. Investigators opened a probe in November. McCollum's lawsuit claims the company knew it was being investigated, yet continued its "abusive tactics."

"Consumers under financial burdens deserve our protection and consideration, not the predatory nature of these allegations," McCollum said in a statement.

According to the lawsuit, those tactics included sending employees to pose as government investigators; extorting money from consumers by threatening arrest; claiming and collecting excessive payments; and abusing or harassing consumers, such as calling them at work. All are illegal under state law.


October 2008   After my son receiving a call from a supposed law firm threatening him with arrest if he did not pay a loan debt that he never took out, and cause him a hassle a year ago with his military bank acct., I stated doing research online. I came across this site and started reading about this Ted Ellis Cosby and all his crooked dealings. I recognized a business name and immediately looked a some paperwork for my son, from March 2006.

He owed some money to a cash advance business and the matter had been turned over to a legal firm, and I'm wondering if it was part of this Cosby joker's dealings. The firm name is Legal Mediation Practices, 1919-4 Blanding Blvd., Jacksonville, FL. Phone number is (800) 201-0565 or (904)387-3187. The debt was paid via a money gram, attention Mr. Knight, and the office manager's name was James Marshall.

This may have been legit, as we did receive a letter from this firm when the debt was paid, however, I'm still a little leery, though it's clearly too late.


October 2008   Just received a voicemail from a "Mike Williams" and "Daniel White" both with a very thick Indian accent. They both foolishly stated "a lawsuit has been filed against you, and you need to call me back today at 800-717-1708, extension 1002."

I can't wait for my "lawsuit" to be served, not just because I am a lawyer but also because they claim I took out an online payday loan through "Bahamas Marketing Group" and there is no paperwork to validate the debt! They couldn't tell me where the case was filed, but that the complaint was filed in December 2007 and that I alledgedly owe $786 WITH LATE FEES AND PENALTIES. These people are clueless.

It's a scam. And all their threats are false and illegal.

ABC News just did a report on this particular scam. Here's the link to the report: http://abcnews.go.com/Business/story?id=5621205&page=1

This is a very active group of scammers, many of whom are calling from India (and probably other countries) and are in cahoots with a group of American pay day loan scammers. They attempt to extort money from consumers with a myriad of false and illegal threats, and alternately pose as debt collectors, federal and state law enforcement officers, lawyers and bankers. Their trademark is to use meaningless legalese gobbylgook phrases like "We are downloading warrants against you" or "We are filing an affidavit against you." Another trademark phrase is to threaten the consumer with something like this ridiculous phrase: "If you don't pay then only God can help you."

Typical of many financial scams of this variety, they usually demand payment via Western Union or Money Gram or credit card. They use any number of phony names such as US National Bank, Federal Investigation Bureau, US Legal Investigation Bureau, Sonic Bank, Hopkins Law Office, United Legal Processing, Morgan Associates, United Pay Services, National Processing, White Collar Crime Unit and many more. These criminals also use many phone numbers from many area codes; they're probably using caller-id spoofing software and/or VoIP to disguise their real location.

The main thing to remember is that anytime someone calls you demanding money to prevent your arrest, or demanding your lawyer's name so they can sue you, it is ALWAYS a scam. No debt collector (let alone criminals posing as debt collectors) has the authority to have anyone arrested for anything. (And it's illegal to them to threaten such a thing.) And since these foreign dirtbags routinely impersonate law enforcement, it's also important to remember that American law enforcement officers aren't in the business of debt collection. (Debt is a civil, not a criminal, matter.)

The bottom line is, these are criminals trying to steal your money.

A consumer posting a complaint about these same scammers at http://800notes.com/Phone.aspx/1-718-831-7157 notes that 718-831-7157 is associated with an India-based "outsourcing" telephone bank. Though a reverse search on WhitePages.com shows that 718-831-7157 is an unlisted land line in New York City, information on Debtbuyers.Com shows that that number is used by India-based Intellisourze. (Source: http://www.debtbuyers.com/debtbuyers.asp ) My guess is that it's a VoIP phone number.

This is another piece of the puzzle that fits in perfectly with other information about this scam. There are some reports on 800Notes that have suggested that the crooks behind this offshore scam are also the crooks behind the notorious Bass/Ellis Crosby & Assoc./States Predisposition scams in Florida and Georgia. The interesting thing is that the number of complaints on here about the US National Bank/US Legal Investigation/Federal Investigation scam skyrocketed *after* April 7, 2008 when Florida obtained a $1.3 million judgment against Ted Ellis Crosby, shutdown his operations and barred him from ever conducting debt collections in Florida (Read http://myfloridalegal.com/newsrel.nsf/newsrel ... 5257424005858A6 ) There's certainly a good chance that the crooks placing these calls from India are doing so on behalf of the American crooks behind the Crosby/Bass/States Predisposition scams.

Here's the contact information for the phone bank in India:

IntellisOurzE BPO
701, Sapphier, Nr. Cargo Motors,
C.G. Road Navrangpura,
Ahmedabad - 9. (Guj.) INDIA.
E-Mail: info@intellisourze.com
Website: www.intellisourze.com

A check on the domain name "intellisourze.com" shows that the website and name registration was created on May 8, just one month *after* the Crosby scams were shut down in Florida:

Domain Name: INTELLISOURZE.COM  Registrant: Pragra Infratech Pvt. Limited.  Email: ankur.ranpariya@pragra.com
908, Aksaht Tower, Nr. ICICI Bank   Opp. Rajpath Club, S.G. Highway  Ahmedabad, Gujarat, India 380054
Tel. +91.7926871353  Creation Date: 08-May-2008  Expiration Date: 08-May-2009
Domain servers in listed order: ns5.znetindia.com ns4.znetindia.com
(Source: http://whois.domaintools.com/intellisourze.com )

Though scam calls from these crooks have been going on long before May 8, the frequency of complaints about these calls increased considerably after Crosby was shut down in early April.

This is conjecture, but appearances suggest that Crosby and company were originally running a two-pronged payday loan scam operation -- with some calls being made from Jacksonville, Florida and other calls being made from a phone bank in India (and possibly other countries); then, after the Florida Attorney General shut down the Crosby scams in Florida, the Crosby crooks transferred most of their scam efforts to the India phone bank.


September 2008    1919 Blanding Blvd Suite 4, Jacksonville, Florida 32210 Ph: 904-387-3187 or 800-201-0565
866-601-0822  or 904-493-6980 The owner is: President Donavin Warren, aka/Bill Roth 1834 Wild Dunes Circle
Orange Park, FL 32065  Steven C. Pair, Vice Pres,  aka/Richard Steele 9323 Bearsford Court, Jacksonville, FL 32244
Managers: Terry Gallivan aka/Terry Flynn Tim LaFramboise aka/Tim Payne


July 2008   I've been contacted by a company calling itself the Legal Mediation Practice, which I believe is yet another offshoot of this Bass/Ellis Crosby/etc debt collection conglomeration. They call from Jacksonville, FL and use the same illegal tactics to extort people into paying them (usually for payday debts).  I've personally been contacted by them where they begin the conversation by telling me I'm being sued and asking what I intend to do.


June 2008    I was contacted by a Jane Spellman from Spellman Law firm, tel: 888-441-4001, ext. 4024, regarding "allegations that had been filed in her office against me regarding 3 payday loans I supposedly had in 2005. She had the last four digits of my social, and she had the name of my bank from 2005. She said an out of court settlement in the amount of $1197.50 had been awarded against me and either I or my defense attorney should contact them immediately. I told her I do have an attorney, she said I would have to have them fax her a representation letter before they can talk to them, I said give me the fax number, and she said well if you aren't going to take this seriously we will systemize you today and hung up.

I just happened to be at home today when they called, and I am sure they also called my work number. They are not legitimate, I am sure. When will these bottom feeders drop off the face of the earth? When one gets shut down, it seems like 5 more open up---they're worse than cockroaches!


June 2008     ULPD - United Legal processing Division  INDIA  Actually I think this all comes from Ellis Crosby, so add these people to them. You Google their number and it shows a collection agency in India. Says they are downloading your social security number and you are going to be arrested on a debt back in 2005, yet they can never specify what it is. Its Officer so and so from California. Last week he was from New York and the scary thing is they know my social security number. I just don't answer the phone.

India is starting to be a problem - read Bud's take on another agency...


May 2008    Our business recently has had a quite a few calls regarding ‘States Predisposition’ and ‘Bass Enterprise’. After doing some searching online, many of the information links pointed back to your page. Our company (Superior IT Solutions Inc.) is located at 6931 Lillian Road *SUITE 1*, Jacksonville Florida, 32211. We are an Information Technology company. We are neither of these two companies, yet we are getting nasty phone calls because someone didn’t post the correct information. A phone lookup by address (Without using a suite number) pulls up OUR phone number. This company was located in Suite 2. They since have moved out. Please correct your information and try to be more responsible when posting.


April 2008     State Predisposition Office of GA  That stupid phrase "person of interest" is always a giveaway as to the identity of this scam; the crooks from States Predisposition/Bass Pre Litigation say that in many of their phoned attempts to extort money from their victims. The "person of interest" phrase is often used by law enforcement authorities to describe someone they want to talk to regarding a criminal investigation. Of course, the people calling you and your husband are attempting to imply that they are law enforcement officers; don't fall for this scam.

This is a group of crooks that was originally based in Florida and, after the Florida attorney general filed a $1.4 million lawsuit against them, they set-up shop in Georgia using the name States Predisposition. Like many crooks, they go by various names: Bass Enterprises/Bass Pre-Litigation/United Legal Investigations Bureau/United Federal Bank/Impact Business Marketing/Ellis Crosby & Associates/States Predisposition Services/Jackson Phillips & Associates/Kirby & Associates and many others. And they often are calling about supposed PayDay loans.

Though their aliases vary, their method never does. Masquerading as bankers, attorneys, police or other government officials, these crooks call consumers and attempt to extort money with a myriad of illegal false threats. These threats are always phony and include arresting you, ruining your credit rating, serving you "papers" for a lawsuit and, yes, taking your children away from you. In one recent phone call to a consumer, these crooks even pretended to be on a walkie talkie coordinating a police raid of the consumer's home. Granted, this stuff is laughably ridiculous, but, sadly, some people fall for it.

Fortunately, law enforcement authorities and the press have taken notice of these scammers. Check out this excerpt from a recent article in the Florida Times-Union newspaper, and note the last sentence:

"Among the most prominent complaints: Claiming or implying to be attorneys or government agents, threatening arrest or legal action, claiming or collecting exorbitant debt amounts and using harassing or intimidation techniques such as repeated phone calls or calls to a debtor's place of work. In July, Attorney General Bill McCollum's office filed a $1.3 million lawsuit against the firm - also known as Jackson Phillips & Associates - and earlier this week , state attorneys won the first round of the battle in a Jacksonville courtroom by defeating the agency's motion to dismiss the case. A motion to shut down the firm while the case proceeds will be heard in January. The state is also working with Georgia officials to determine whether Bass is trying to escape Florida prosecution by moving across the state line to Folkston, Ga. Records at Folkston City Hall show that a business license was issued in June to Bass officials Frank and Evelyn Jackson to establish a collection agency called States Predisposition Services Inc."

Read the entire article here: http://www.jacksonville.com/tu-online/stories/120107/met_221875639.shtml

I don't know if the Florida attorney general knows it yet, but in addition to their Georgia address, States Predisposition has a listing back in Jacksonville which, not surprisingly, is the same address as Bass Enterprises a.k.a. Bass Pre-Litigation:

States Predisposition
6931 Lillian Road
Jacksonville, FL 32211
(904) 446-9236
http://www.yellowpages.com/listings/search_nearby/10320305358

Bass Enterprises
6931 Lillian Rd
Jacksonville, FL 32211
904-674-2482
http://yellowpages.aol.com/business/bass-ente ... ass+enterprises

And this is the first address they set-up in Georgia last year. It's questionable whether this is a real operations center or just a mail drop or telephone forwarding location:

States Predisposition
1204 South 2nd Street, Suite F
Folkston, GA 31537
(912) 496-7220

The other address that they've used in Georgia is merely a rented private mailbox at The UPS Store that's located in a St. Mary's, GA shopping center:

States Pre-Disposition Services Inc
6586 HWY 40 E
STE B-7 Unit 340
St. Mary's, GA 31558
http://www.whitepages.com/search/Replay?searc ... =25&more_info=1

You should report these crooks to all the following federal and state law enforcement agencies (you can do most of these online):

1) File a report with your local police

2) File a report online with the FBI at https://tips.fbi.gov

3) File a report with Sid Barrett, Senior Assistant Georgia Attorney General at sid.barrett@law.state.ga.us or 404-656-3202

4) File a report to Florida Attorney General Bill McCollum at http://myfloridalegal.com/contact.nsf/contact?Open&Section=Attorney_General and be sure to let them know that it regards the scammers at Bass Pre-Litigation/Jackson Phillips/States Predisposition

5) File a complaint with your state's attorney general. The contact information for each state's attorney general is listed at www.naag.org Just scroll down to the national map and click on your state.

6) File a complaint with the Federal Trade Commission here: https://rn.ftc.gov/pls/dod/wsolcq$.startup? Z_ORG_CODE=PU01

If these crooks call you again, be sure not to tell them anything other than that you've already reported them to federal and state authorities and not to call again. After telling them that, I'm sure they'll huff and puff and make more ridiculous threats; if they do, report them to law enforcement again and take consolation in the fact that you rattled their cage. :)

In addition to reporting these grifters to law enforcement, you also have the option of suing them. For more information on this option and for other advice on protecting yourself from outlaw debt collectors, check out these websites:

http://www.naca.net/debt-collection-abuse/
http://www.budhibbs.com/First.htm
http://www.myfairdebt.com/
 
Finally, these scammers have a long history of threatening people with arrest and worse. Remember: if someone calls you and demands money to prevent you from being arrested, it is ALWAYS a scam.


2007      I just want to know if "white collars" is AKA Bass and Associates/ and several names. I received a call last Friday 10/12/07 at work from a woman who was talking so fast. She said she was from the company "white collars"? She wouldn't go into detail of her phone call only just to ask for my attorney contact information. She told me I was a prime suspect in my county and I was going to be downloaded this afternoon. I said I could have my attorney call her back and she hesitated and said "this was an outbound line" whatever that mean and couldn't give out the number. I hung up on her!


2007      I was contacted by this company at work about a pdl that I did back in 2006. She was rude and threaten me and said that if I did not pay $897 that day that my file was going to downloaded in the system and someone would be coming to my place of employment to arrest me. I was terrified and had to leave work and go home, call my son and beg for the money. I could only come up with $500 and I called her back and told her that I could pay the rest in 2 weeks. She acted as though she had to consult with US National Bank to see what they said. She called me back and said that would be fine. I ended up sending the full amount of $897 and she finally faxed over a document saying that I was paid in full but it did not look legitimate and had no signature and no return fax number. I wish I would of known about this website before because I paid $897 for a $275 loan. Also, 2 weeks later I received a call at work for US National Bank saying that I owe them $1325. They told me about Bass and to look on the internet and I woudl see what they're all about. That's how I found all of this. I don't think they are legitimate either. I was so stupid to fall for their scam. I almost suffered a nervous breakdown over this.


2007      I just received a call on June 8th from Bass and Associates. They were calling on a balance on a pay day loan. I told them I had been trying to get in touch with this loan company but I never received a response. The lady I spoke with would not give me the name of the loan company they were collecting on. I should not have made a payment until I got the name but she started with the threats. The initial loan was for $300 and now they are wanting me to pay $763. They said this was for court fees, etc. I told them I did not have that amount of money at the time and could I just pay part of it and then pay the balance later. They made it sound like they were a law firm and said if I did not have the full amount paid by 4 pm I will be charged for theft. Of course I freak out because I have never been in trouble with the law and I don't want to have charges put against me. I have a husband and two little children at home. I did pay them the $300 via a moneygram. I have yet to send the balance and I am glad that I have not since I was told about this site. I have contacted a lawyer to see what I should do. How can someone be allowed to do this and for this long? How can a person and the people that work with them live with themselves. I have to collect money on past due accounts and I could never use the tactics these people have used and live with myself. Thanks for keeping people in the loop of the scum bags in the world.


2007      They have called my work and told them I was busted and going to be arrested. I have since asked them not to call and have contacted the Maryland Attorney General as well as the Florida Attorney General for assistance


une 11, 2007  http://www.jacksonville.com/tu-online/stories/061107/met_176207561.shtml

Jacksonville is a good place to be past due It leads in the investigation of bad debt-collection practices.

By David Bauerlein, The Times-Union

Jacksonville isn't home to the biggest number of debt collection agencies among Florida cities. But it leads in investigations into unfair or unlawful practices.

Since 2004, the Attorney General's Office has opened three investigations of Jacksonville-based businesses. In the most far-reaching case, the state this year won a final judgment against Ellis Crosby & Associates on accusations the company threatened consumers with arrest if they didn't pay overdue loans.

While the state pursued that judgment, the company's president, Ted Ellis Crosby, 28, is serving time in the Duval County jail on a possession of a handgun by a felon charge.

Tom Stephens, president of the Better Business Bureau of Northeast Florida, said complaints about debt collectors dipped in 2006 while the state cracked down on Ellis Crosby & Associates.

But this year, complaints have shot back to the top of the bureau's list.

"Most companies are doing a good job, but there are a handful of bad apples," said state Sen. Victor Crist, R-Tampa.

Crist has tried to win approval of legislation that would give more power to the state Office of Financial Regulation in investigating complaints about debt collectors, and add requirements for businesses to get state registration. He said he intends push again for the bill, possibly in the 2008 session.

Complaints in part are the "nature of the beast" for collection companies, which often deal with irate consumers, Stephens said. He said the worst complaints about heavy-handed tactics stem from collection agencies that aggressively try to collect payday loans.

Consumers should understand that under federal and state laws, they can't be arrested for failing to pay their debts, Stephens said.

"The debt collector cannot throw them in jail," Stephens said. "He cannot have local law enforcement come out to arrest them. It's a civil matter, not a criminal matter. It could end up in court, but it's civil court, not criminal court."

Debt collection is big business, and Jacksonville has its share of collection agencies. According to the Office of Financial Regulation, 40 businesses whose primary address is in Duval County are registered to collect debts in Florida. That's 9 percent of the 428 collection agencies based in Florida.

A spokeswoman for the attorney general and Andy Grosmaire, an administrator for the Office of Financial Regulation, said it's just coincidence all the recent investigations of Florida-based agencies have been in Jacksonville.

But the state's lawsuit against Ellis Crosby & Associates does contend a link between Ted Ellis Crosby and Bass Prelitigation, the latest subject of an investigation. In a motion filed in November, the state contended Crosby was involved in debt collection by using "aliases, fronts of strawman operations such as Bass Prelitigation."

Broward County resident Joanna Cook made a similar allegation in a lawsuit she filed in February against Bass Prelitigation.

Cook contended former employees of Ellis Crosby & Associates formed Bass Prelitigation last year and worked with Ted Ellis Crosby to develop a business plan for the company. Her lawsuit contends Bass Prelitigation was organized to sidestep the attorney general's lawsuit against Ellis Crosby.

Cook's lawsuit said an employee of Bass Prelitigation called and said she faced immediate arrest if she didn't pay $999 that same day by MoneyGram for a payday loan. She said she became frantic because she feared being separated from her two children, including a newborn.

David Jacobs, office manager for Bass Prelitigation, declined to comment on the specific allegations and the attorney general's legal filings. But he said Bass Prelitigation does not threaten consumers with arrest or have any association with Ted Ellis Crosby.

"I will tell you, categorically, we have no connection with him whatsoever," Jacobs said. He said Ellis Crosby & Associates put a "horrible stigma" on debt collectors and "is an example of what not to do." He said Bass Prelitigation will be installing a telephone recording system so it will have records of what employees say in their calls.

Ellis Crosby & Associates was founded in 2003, four years after Ted Ellis Crosby was court-martialed by the Navy in Jacksonville, according to court documents.

At its peak, the business was collecting debts from thousands of customers across the nation, but in a 14-month period, 120 complaints were filed with the Better Business Bureau.

The attorney general won a final default judgment in February that bans Ellis Crosby & Associates and Ted Ellis Crosby from engaging in any kind of debt collection in Florida.

Meanwhile, the State Attorney's Office prosecuted Crosby on two counts of possessing a handgun by a felon, based on his conviction by the Navy court on LSD distribution charges.

Crosby stood trial in April on the gun charges. The jury acquitted Crosby in a January 2006 incident when he fired a handgun at an armed robber in a parking lot outside his Southside Boulevard business. But the jury convicted Crosby on a charge of possessing a handgun during a 2006 traffic stop.

Circuit Judge Russell Healey sentenced Crosby to six months in jail and added a special provision to his probation - Crosby cannot work in any way in the debt collection field.

"It makes it a bigger hammer hanging over his head not to do it," said Assistant State Attorney Adam Urra.


2007      This is to the person who commented below. File a complaint immediately with the Florida Attorney Generals Office and also the Attorney General of your state. Bass and Associates will be forced to repay you what is legally and rightfully yours. Each state has laws limiting what you must pay, and you have been violated more than once. Also, the threats of arrest are illegal. Get that complaint in right now.  http://anthonylemons.blogspot.com 


2007       My run in with Bass and Associates is exactly the same as everyone else's. I didn't know then what I know now. I took out a few payday loans in October and was paying on them fine until they began taking multiple unauthorized debits from my checking account. It ended up over drafting me by $2,000 which I could not pay. My bank closed my account and two weeks later I got a call from Bass and Assc. They told me that the bank would settle with me if I paid Bass $656.00. this was on a friday evening and they gave me until Monday to come up with the money. Thinking it was legit, I paid the monies since I didn't want to get into trouble with the banks.

Two weeks later I got the infamous Bass phone call regarding a payday loan I had taken out and now could not pay properly because of my bank account issue and the exhorbant amount of money I had just paid setting me back with the rest of my bills. They called me on a Wednesday afternoon at 3:00pm and told me I had until 7:00pm to pay them over $600.00. They asked me if I had ever been on probation before and told me that I was committing fraud which is a felony and I would be "located" for prosecution if I did not pay at 7:00pm and would not take any alternatives from me to arrange payments.


2007      I have infuriately experienced the wrath of Bass & Associates for over a year now. The first few calls I received were from people I could not understand they both had a heavy Arabic ancient and they proceeded to tell me I was being charged with 4 different counts of fraud and they have total proof of when I received the money from these different companies I allegedly still owe money. I recently contacted the Tele Track which I was told is the company that they report to if the loans are not paid and there was 3 different companies listed and they where contacted and all 3 where paid. I also filed a complaint with my state attorney general office in Michigan and received a response back along with the response from Bass and Associates and they basically told my attorney general's office that I was a liar and they turned the files back over to there clients and informed each one of them what my position was??  They also stated upon receipt of every file they mail out a detailed correspondence prior to contacting the consumer but I never ever received anything in the mail. This company is nothing but a scam and I will not send them a flipping penny until I receive notice or a summons to appear in court. I hope this has helped someone out and  that eventually they all will be thrown in jail and made an example of I am sick and tired of worrying about being put in jail and about them threatening me all the time!!


2007      Bass and Associates is an agency which utilizes illegal threats of arrest, and accusations of white collar crimes. If you receive a call from this agency, record the call if at all possible. The mailing address for this company leads to a UPS store in Jacksonville, Florida. The Attorney Generals office of Florida is actively investigating this agency. The latest 'Boss' of this company is a David Jacobs. Their phone number is 877-281-2220. His cell phone number is: 904-982-0091. My site covering this agency is at: http://anthonylemons.blogspot.com  Wake up U.S.


2007      Ellis Crosby & assoc. is now using the name of Anthony Galloway, also Taylor, James & associates...They are at it again under different names, same old illegal tactics.


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