Brown sues credit services company

Kathy Woods Sep. 30, 2009, 5:25pm

Jerry Brown (D)

SACRAMENTO, Calif. (Legal Newsline)-Ignore his office's warnings and get sued is the message California Attorney General Jerry Brown is sending with his latest lawsuit.

The owners of Executive Financial Credit Services -- Todd Swick and Michael Sardo -- are being sued by the Democratic attorney general for repeatedly ignoring warnings to register with his office and post the required $100,000 bond with the Secretary of State.

"Swick and Sardo violated California law by refusing to register their credit repair business with the Attorney General's office and post a $100,000 bond, even after repeated warnings, Brown said in a statement. "So today, attorneys from my office are filing suit, sending a clear signal to credit repair firms operating in California that they must register with the Attorney General's office and follow the law."

Beginning in late 2008, Brown sent letters to the company directing them to register and put up the $100,000 bond required by law.

Despite his efforts, Brown said the company did not respond.
Then in early 2009, Sardo informed Brown that he was leaving California and moving to Arizona; therefore, he did not need to register. Brown informed him that if the business continued to operate in California they must register and post bond.

The business continued to operate, said Brown, who filed a suit in San Diego County Superior Court claiming that the business violated three of California's Civil Codes, including not posting the $100,000 bond with the Secretary of State's office, conducting a business without be registered and charging consumers money before completing the services to be performed.

The suit seeks a permanent injunction which would prohibit Executive Financial Credit Services from operating illegally, civil penalties of not less than $200,000 and restitution for the victims.

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