Experian Files Lawsuit Against Stein Saks PLLC Alleging Fraudulent Activities
Experian Information Solutions, Inc. has filed a lawsuit against the law firm Stein Saks PLLC, alleging a series of fraudulent activities aimed at extorting settlements through fabricated lawsuits. The complaint, filed in the United States District Court for the Central District of California, outlines a comprehensive scheme involving multiple actors and a range of illegal activities.
The Allegations
Experian, a leading consumer credit reporting agency, claims that Stein Saks, along with its founders Judah Stein and Yaakov Saks, operated a nationwide RICO (Racketeer Influenced and Corrupt Organizations) enterprise. This enterprise included various attorneys and accomplices from multiple states, all allegedly conspiring to recruit consumer plaintiffs and manufacture fake credit denial letters to support fraudulent claims under the Fair Credit Reporting Act (FCRA).
The lawsuit details how the defendants allegedly created sham lawsuits by producing fake evidence, including credit denial letters from Cornerstone First Mortgage and Funding Resources Mortgage Corp. These letters were purportedly used to file numerous lawsuits against Experian, resulting in significant legal fees and damage to Experian’s reputation.
Key Players and Methods
The complaint highlights the roles of various individuals and entities allegedly involved in the scheme:
Stein Saks Attorneys: Judah Stein and Yaakov Saks are accused of orchestrating the fraudulent activities, including fabricating evidence and directing other attorneys and accomplices.
Credit Repair Operators: Individuals like Chesky Monk and Yenon Argy allegedly collaborated with Stein Saks to recruit plaintiffs and create fake denial letters.
Other Law Firms: The involvement of Justin Zeig and his firm, Zeig Law, is also noted, with claims of their participation in filing and supporting the sham lawsuits.
The Impact on Experian
Experian alleges that the fraudulent scheme has caused substantial financial and reputational harm. The company claims to have been forced to settle numerous baseless lawsuits and has incurred millions of dollars in legal expenses. Moreover, the complaint asserts that the defendants’ actions have tarnished Experian’s goodwill and standing in the industry.
Legal Claims
The lawsuit brings forth several serious charges against Stein Saks and its co-conspirators, including:
Violation of the RICO Act: Allegations of engaging in wire fraud, mail fraud, extortion, obstruction of justice, witness tampering, and money laundering.
Common Law Fraud: Allegations of deceiving Experian and the courts with fabricated evidence.
Unjust Enrichment: Allegations of profiting from fraudulent activities at Experian’s expense.
Abuse of Process: Allegations of misusing the legal system to advance fraudulent claims.
Unfair Competition: Allegations of violating California’s Business and Professions Code.
Stein Saks’ Pattern of Behavior
Adding to the gravity of the allegations, the lawsuit highlights that Stein Saks has a history of leading class actions under the Americans with Disabilities Act (ADA) for several years, allegedly employing a similar modus operandi. These ADA class actions have raised suspicions of similar fraudulent tactics aimed at coercing settlements through questionable legal practices. Judge Valorie Caproni recently issued a sanction on Stein Saks attorney Mark Rozenberg.
Experian’s Response
Experian is seeking damages to recover the losses it claims to have incurred due to the fraudulent activities and to prevent future harm. The company aims to hold the defendants accountable for their actions and to safeguard the integrity of the legal process.
Conclusion
This lawsuit represents a significant step by Experian to combat what it describes as a widespread and damaging fraudulent enterprise. As the case unfolds, it will shed light on the intricate and nefarious methods allegedly used by Stein Saks and its associates, and potentially set a precedent for how such alleged fraudulent activities are addressed in the legal system.