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Saturday, April 20, 2024

Cornerstone Financial, JCB Leasing & Finance sued over alleged illegal financing practices

Collateral

LOS ANGELES (Legal Newsline) – A California man is suing a vehicle and truck financing company, its owner, a leasing and financing company, and its owner over claims they engaged in illegal financing practices.

Moises Garcia Guillen, individually and for all others similarly situated, filed a class-action lawsuit Dec. 17 in the Central District of California against Cornerstone Financial Services; David Stone; John C. Beery Jr., doing business as JCB Leasing & Finance; and Does 1-10, alleging mail and wire fraud, civil conspiracy, conversion, breach of contract, fraud and negligent misrepresentation and violations of federal and state laws.

The suit states the defendants engaged in illegal financing practices related to their collection, repossession and disposition of collateral practices.

According to the suit, the defendants would repossess secured collateral and would then, without proper notice and often within hours of repossession, claim to sell the collateral in an attempt to bypass legal and contractual rights of debtors, including the right to redeem the collateral or otherwise have it turned over to the debtor.

The defendants would claim that they no longer had any rights in the collateral and therefore could not turn it over to the debtor, the suit alleges.

According to the suit, the defendants have engaged in this sham conduct for the last 30 years.

Guillen and others in the class seek monetary damages, restitution, equitable relief, treble and punitive damages, attorney fees, and costs of the suit. They are represented by attorney Torin A. Dorros of Dorros Law in Los Angeles, and by attorneys D. Justin Harelik and Matthew A. Rosenthal of Westgate Law in Encino, California.

Central District of California Case number 2:15-CV-09699-RGK-FFM

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