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Federal Trade Commission and State of Illinois, Plaintiffs, v. Stark Law LLC d/b/a Stark Recovery; Stark Legal, LLC; Ashton Asset Management, Inc.; CHM Capital Group, LLC d/b/a Capital Harris Miller & Associates; HKM Funding, Ltd. In its capacity as manager of CHM Capital Group, LLC; Pacific Capital Holdings, Inc. f/k/a Charles Hunter Miller & Associates, Inc. and d/b/a Pacific Capital; Hirsh Mohindra; Gaurav Mohindra; and Preetesh Patel, Defendants.
FTC Matter/File Number
152 3243
Civil Action Number
Enforcement Type
Federal Injunctions
Federal Court
Northern District of Illinois

Case Summary

The Federal Trade Commission and the Office of the Illinois Attorney General are sending payments totaling more than $4 million to more than 10,000 consumers who lost money to the Stark Law phantom debt collection scheme.

According a suit filed by the FTC and the Illinois Attorney General, Stark Law used a host of business names to target consumers who obtained or applied for payday or other short-term loans, pressuring them into paying debts they either did not owe or that the defendants had no authority to collect. The defendants allegedly called consumers and demanded immediate payment for supposedly delinquent loans, at times threatening consumers with lawsuits or arrest, falsely claiming they would be charged with “defrauding a financial institution” or “passing a bad check.”

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