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06-13-2018, 01:20 PM #1
Debt Settlement Companies Paid Yellowstone Capital and Everest Business $500,000
https://debanked.com/2018/06/settlin...-against-them/
A group of debt settlement companies and ISOs have entered into a settlement they’re unlikely to forget. A lawsuit that accused Corporate Bailout, Protection Legal Group, Mark Mancino, Michael Hamill and others of tortious interference with merchant cash advance contracts has led to a settlement in which the defendants agreed to pay Yellowstone Capital and Everest Business Funding $500,000. They also agreed not to offer any services to Yellowstone or Everest merchants in the future, deBanked has learned.
The original complaint alleged that ISOs had partnered with companies that purport to offer debt relief services to merchants with MCAs. In practice, the complaint said, debt relief was a code word for deceiving merchants to breach their existing agreements so that they could pay fees instead to the debt relief companies.
When asked to comment, Yellowstone Capital CEO Isaac Stern said that there were companies that offer this kind of service the right way but that was not the case here. “The way they’re going about it is really wrong,” he said.
Of note is that the bound parties were not just debt settlement companies but also ISOs and a law firm (Mark D. Guidubaldi & Associates, LLC dba Protection Legal Group).
Additional companies not named in the original complaint but nonetheless bound to the settlement are Mainstream Marketing Group and Corporate Client Services LLC. Websites for both companies say that they offer small business debt relief services.
Coast to Coast Funding LLC, who the defendants represented they had no control of, did not participate in the deal.
The settled matter is not the first of its kind. Everest and Yellowstone have been hammering debt settlement companies with lawsuits this year, according to court records examined by deBanked. In January, Everest sued MCA Helpline and Todd Fisch for tortious interference, and just last month Yellowstone filed a Petition to recover funds that were allegedly fraudulently transferred by Settle My Cash Advance.
In the latter case with Settle My Cash Advance, the defendants are alleged to have actively coached a merchant to hide his money in new bank accounts and hide the paper trail rather than pay the money owed to Yellowstone.
Speaking about no case in particular, Stern said “Imagine getting a commission on a deal [where you help a small business get funding] and then sending it to a debt settlement company. If there are ISOs that are doing that, we’re going to come after you hard.”
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06-13-2018, 01:26 PM #2
Well done
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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06-13-2018, 01:28 PM #3
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06-13-2018, 01:28 PM #4
- Join Date
- Mar 2016
- Posts
- 657
This is a huge win. Well done Isaac
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06-13-2018, 01:31 PM #5
- Join Date
- Jun 2015
- Posts
- 3,325
bravo
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06-13-2018, 01:49 PM #6
- Join Date
- Aug 2017
- Posts
- 405
Hey Isaac. You may want to check into Second Wind consultants.
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06-13-2018, 02:39 PM #7
Ysc <3
Patrick Wilson
Managing Partner
www.PremierCapitalNetwork.com
(NO MORE LENDER/FUNDER CALL PLZ)
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06-13-2018, 03:56 PM #8
- Join Date
- Apr 2013
- Location
- Basalt CO
- Posts
- 867
i had a couple debt settlement companies call me 10 months ago. I asked them, "you want me to sell your product to my customers? That violates every ISO agreement i ever signed."
They tried to convince me it was a way to make more money off my book of business.
I was like, WTF, do you have any morals?I put my contact info in here, and
was bombarded with spam from funders
if you need to reach me PM me
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06-13-2018, 04:23 PM #9
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06-13-2018, 04:31 PM #10
- Join Date
- Dec 2013
- Posts
- 4,713
I saw this news and was smiling so much today... i m certain the group here thinks I'm HIGH
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
——————————————————————————
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
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06-13-2018, 04:38 PM #11
- Join Date
- Jun 2015
- Posts
- 3,325
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06-13-2018, 05:04 PM #12Karen37aGuest
What about that Amy person who was calling everyone including me like a nut.
One of them in Florida told me "if I knew what was good for me" id partner with them.
I don't know if they realize that we consider ourselves the Funders partners on our book of business and we get renewal commission.
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06-13-2018, 05:04 PM #13
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- Oct 2016
- Posts
- 4,318
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06-13-2018, 05:07 PM #14
- Join Date
- Feb 2018
- Posts
- 1,349
what is worse, a broker taking a deal right after you fund it and pay them and stacking them 2-3 deep causing a default, or, a broker sending them to a debt relief co after they fund a merchant and collect a commission. Both seem to be bad practices.
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06-13-2018, 05:08 PM #15Karen37aGuest
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06-13-2018, 05:15 PM #16
- Join Date
- Oct 2016
- Posts
- 4,318
Step 1: setup a fake website and email of a debt settlement company
Step 2: send out emails to all ISOs offering your debt settlement service
Step 3: any ISO that responds gets their ISO terminated
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06-13-2018, 05:20 PM #17Karen37aGuest
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06-13-2018, 05:40 PM #18
- Join Date
- Apr 2013
- Location
- NY
- Posts
- 203
Yes. LCF has also sued settle my cash advance recently, and is also going after other debt settlement firms. You will be seeing a lot more lawsuits against these guys in the coming months.
https://iapps.courts.state.ny.us/nys..._PLUS_No/Y3A==
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06-13-2018, 05:44 PM #19Karen37aGuest
Some of these companies have been tacked before. Sued etc.
If they keep going they will wind up in jail with mail and wire fraud charges. They will raid them. Everyone including the secretary who answers the phone "legal dept" will get charged and they seize their assets..all, personal...and a judgement that follows you to tohe grave, you cant go bankrupt from it
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06-13-2018, 05:48 PM #20Karen37aGuest
That is the power of "regulation"....they get arrested. And why they cant get on the back end of some loan brokers calls, they did loan modifications and forensic audits to block the modifications for the investors and know all the laws.
Last edited by Karen37a; 06-13-2018 at 05:50 PM.
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06-13-2018, 06:16 PM #21Patrick Wilson
Managing Partner
www.PremierCapitalNetwork.com
(NO MORE LENDER/FUNDER CALL PLZ)
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06-15-2018, 08:58 AM #22Karen37aGuest
I read that some Debt relief companies gave a list of the brokers/funders who participated.
ack
They always tell on you
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06-15-2018, 09:40 AM #23
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- Aug 2017
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- 249
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06-15-2018, 10:30 AM #24
- Join Date
- Oct 2015
- Location
- NYC
- Posts
- 119
Maybe I do not understand your comment, but you have a problem with reverse consolidations? Reverse consolidation are designed to help get them unstacked and not default or have to go the debt settlement route. When it is responsibly underwritten it is a great program. However, there are some companies that will give crazy terms and include positions that do not make sense for the merchant. On top of that they will fund them an additional advance which defeats the whole purpose of the reverse. Which leads me back to my point, it is a good program if responsibly underwritten.
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06-15-2018, 10:34 AM #25Karen37aGuest
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