Wolpoff and Abramson

now Mann Bracken 

Ronald M. Abramson, 40, of North Potomac, MD and Stuart J. Wolpoff, 45, of Potomac, MD know what it’s like to hit the lottery. 

Their Rockville, MD law firm, Wolpoff & Abramson, has been a money tree that never stops producing. Partners in a business that purchases debts for just pennies, they operated a slew of organizations that purchased debts, manufactured documents, and then farmed them out to a national attorney group for lawsuits against consumers. 

In early 2007, these companies; Great Seneca Financial Corporation, Platinum Financial Services Corporation, Monarch Capital Corporation, Colonial Credit Corporation, Centurion Capital Corporation, Sage Financial Group and Hawker Financial Corporation were sold to Asta Funding Corporation and Palisades Acquisitions, LLC of Englewood Cliffs, NJ. 

The sale, rumored to be in excess of $100 million dollars, also allowed Wolpoff & Abramson additional commissions for using their attorney network to continue to collect on the these same accounts. 

Now comes word that the Wolpoff & Abramson name will cease to exist when they merge with two other junk debt collector law firms -- Mann-Bracken out of Atlanta, GA and Eskanos and Adler of Concord, CA, under the name of Mann Bracken. 

                                                  Mann Bracken has found a niche collection market by filing arbitration claims through the National Arbitration Forum (aka Not Always Fair), where they include attorneys fees and costs of 15-20%, which results in an award for their clients on more than 95% of the claims they file. Computers affix an electronic signature by one of their attorneys filing the Mann Bracken arbitration claims. Above the attorney signature is an assertion that the information contained in the Claim and the supporting documents is true and correct. The “supporting documents” consist usually of only a computer printout of some basic information, an over-produced copy of ‘some’ agreement and of course copies of law that purport to give validity to their claim.

     Wolpoff & Abramson, Mann-Bracken and Eskanos and Adler will soon become one entity under the Mann Bracken name. Consumers will have arbitration claims delivered by Fed-X, UPS and other overnight carriers. Arbitrators hired by NAF will continue to be paid based on their willingness to enter awards and the courts will continue to inundated with filings to have the NAF awards confirmed as judgments.

     Their big sale to Asta/Palisades was great for Wolpoff & Abramson; maybe not so good for the junk debt collector who paid about 4.5 cents on the dollar for junk debts. Asta reportedly paid $300 million for portfolios of junk debts, surprisingly, as the industry on average only collects about 5-10% of them. The Stern family, owners of Asta/Palisades, who reportedly made the loan confirmed Asta/Palisades had to borrow money recently.

     The economic downturn is not just hurting consumers; junk debt collectors like Asta/Palisades are also feeling the squeeze. As their purchased debts continue to age, further decreasing their value, more consumers are challenging the legality of their purchased claims-- consumer attorneys have never been busier. The price for defaulted portfolios is climbing like oil, and with more debt buyers bidding for fewer premium packages, and paying record, one can only speculate how much longer the collection industry can remain solvent.

     Wolpoff & Abramson and their new group of debt collectors don’t appear worried. Arbitration is the latest source of income that almost guarantees a profit to anyone using it. You simply purchase portfolios containing arbitration clauses, manufacture the paperwork, sign and swear under perjury, send it out by overnight mail and Not Always Fair (aka/National Arbitration Forum) takes care of the rest. The arbitrators produce awards that keep the money flowing so everyone involved in the arbitration industry can continue to reap the monetary rewards.

     As for Stuart and Ron, they will continue to harvest the rewards of junk debt collectors even in tough economic times for the consumer. The flow of money from junk debts continues much like oil flowing from the ground. It is always there, no matter what it costs to get it.