The New York Times reported on January 4, 2011, that a Second Circuit Judge has denied a motion to dismiss a lawsuit filed against a debt-buying firm, a law firm engaged in debt collection litigation and a process server. The suit is based on a massive “sewer service” scheme devised and implemented by the three entities.

The suit alleges the parties sought to fraudulently obtain more than 100,000 default judgments in New York state court by purposefully failing to serve a summons and complaint upon parties the schemers targeted as defendants. After that, they filed fraudulent affidavits attesting to the successful service of process. Since the defendant was never notified of the pendency of the suit, the (phony) plaintiff was granted a default judgment.

Further, in Sykes vs. Mel Harris and Associates, the three defendants are accused of violating the Fair Debt Collections Practices Act and RICO, a federal law governing racketeering and corruption. Mel Harris, the lawyer named as defendant in the case, was also charged with a misdemeanor attorney misconduct charge under the state’s Judiciary Law.

The Jayaram Law Group routinely and successfully assists its clients in their business-to-business (b2b) collection needs.  We take pride in obtaining payment on accounts receivable without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.  If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm.