WASHINGTON (Legal Newsline) — The Consumer Financial Protection Bureau (CFPB) has announced that a federal district court entered a final judgment against Morgan Drexen that resolves allegations the company charged illegal upfront fees and deceived consumers.
Morgan Drexen, founded by Walter Ledda in 2007, provides debt relief and operates nationwide. The CFPB took action against the company in 2013, alleging it had violated the Telemarketing Sales Rule and Dodd-Frank Wall Street Reform and Consumer Protection Act.
“The CFPB’s victory sends a strong message that debt relief companies break the law when they defraud struggling consumers, and those actions have consequences for which we will hold them accountable,” said CFPB Director Richard Cordray. “The court’s orders against Morgan Drexen and Mr. Ledda ensure they will never again violate the rights of consumers, and the significant penalties imposed reflect the severity of this illegal conduct.”
Morgan Drexen will be forced to pay $132,882,488 in restitution as well as $40 million in civil penalties.