Nexus Services, Inc., Libre by Nexus, Inc., Micheal Donovan, Richard Moore, and Evan Ajin
On February 22, 2021, the Bureau filed a lawsuit against Nexus Services, Inc. (Nexus Services), Libre by Nexus, Inc. (Libre), and their principals, Micheal Donovan, Richard Moore, and Evan Ajin. Libre is a wholly owned subsidiary of Nexus Services, and both are non-banks with their principal places of business in Virginia. The Bureau alleges that Libre and its owners operate a scheme through which Libre offers to pay immigration bonds to secure the release of consumers held in federal detention centers in exchange for large upfront fees and hefty monthly payments, and that Libre creates the impression that it has paid cash for consumers’ bonds, creating a debt that must be repaid to Libre through an upfront fee and subsequent monthly payments. The Bureau further alleges that Libre’s efforts to collect monthly payments include making false threats and threatening to re-detain or deport consumers for non-payment and that Libre and its owners conceal or misrepresent the true costs of its services. Specifically, the Bureau alleges that Libre and its owners engaged in deceptive and abusive acts or practices in violation of the Consumer Financial Protection Act of 2010, and that Nexus Services and Libre’s owners provided substantial assistance to Libre’s violations. The Bureau filed its complaint jointly with the Attorneys General of Virginia, Massachusetts, and New York. On March 1, 2021, the defendants filed a motion to dismiss the complaint, which the court denied on March 22, 2022. On February 7, 2023, the magistrate judge ordered defendants to show cause why the district court should not sanction them—including through entrance of default judgment—for various violations of court orders. On May 1, 2023, the defendants filed a motion for judgment on the pleadings, and on May 11, 2023, the district court found the defendants in civil contempt and entered default against them. The court also denied as moot the defendants’ motion for judgment on the pleadings. Defendants appealed the district court’s denial of their motion for judgment on the pleadings, and on February 21, 2024, the Fourth Circuit dismissed the appeal on the ground it lacked jurisdiction. On April 1, 2024, the district court granted final judgment to the Bureau and the states. The court ordered: defendants to pay $230,996,970.84 in consumer redress; each defendant to pay the Bureau $111,135, 620 in civil money penalties; and defendants to pay $24,390,000 in penalties to the states. The court also, among other restrictions, enjoined defendants from requiring consumers to wear a GPS device or collect payments related to GPS monitoring. The court also required defendants to make certain clear and prominent disclosures in writing, including: the terms of products or services; associated fees; and that non-payment or noncompliance will not have any impact on a consumer’s immigration status or associated immigration proceeding.
Related documents
Amended Final Judgment Order and Amended Memorandum Opinion