Our Stories

Disabled Veterans File Suit against Alleged "Scam Artists" Peddling Illegal High Interest Loans


9/8/2017

Public Counsel is proud to represent three disabled and medically retired veterans who recently filed a lawsuit in federal court against a group of companies and individuals, charging that their business practices violate federal law. The suit alleges that the defendants conspire together to prey upon financially vulnerable veterans by offering illegal, costly loans that strip the veterans of their federally protected military pensions and benefits.

The practice is prohibited by a collection of federal laws. However, it is likely that hundreds if not thousands of veterans have been fleeced by the defendants through similar schemes in recent years.

Chad Wright is one of the plaintiffs. He grew up in a military family, and proudly served in the United States Army from 1989 to 1994. However, during a parachute jump on a rainy night, Mr. Wright injured his spine. He received disability upon his discharge from the military. Even though he and his wife worked several jobs, in 2013, Mr. Wright encountered financial difficulties. His family and four young daughters were facing homelessness. Mr. Wright had been homeless before, and could not let his family experience that trauma.

Out of desperation, Mr. Wright agreed to sell his pension payments to the defendants in exchange for a loan. According to the lawsuit, up to half of the money paid by the purchaser of Mr. Wright’s pension never reached Mr. Wright, but instead was pocketed by the Defendants. At no time did the defendants inform Mr. Wright that the transaction he was entering into was prohibited under the Federal law.

Public Counsel hopes that this federal lawsuit will protect our nation’s veterans from this alleged nationwide racket. The plaintiffs are also represented on a pro bono basis by the law firms of Jones Day, and Jackson Lewis P.C.

READ THE COMPLAINT HERE

READ THE PRESS RELEASE HERE

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