Burlington Financial Group, LLC, Richard Burnham, Katherine Burnham, and Sang Yi
On June 28, 2021, the Bureau filed a lawsuit in the United States District Court for the Northern District of Georgia, and on the following day, the Bureau filed a proposed stipulated final judgment and order against Burlington Financial Group, LLC, and its principals, Richard Burnham, Katherine Burnham, and Sang Yi, which the court entered the same day. Burlington Financial is a Maryland-based company offering debt-relief and credit-repair services. The Bureau alleged that Burlington Financial and its principals used telemarketing to solicit consumers with false promises that Burlington’s services would eliminate their credit-card debts and improve their credit scores. The Bureau alleged that Burlington and its principals charged advance fees for debt-relief and credit-repair services in violation of the Telemarketing Sales Rule (TSR) and engaged in deceptive acts or practices to market and sell Burlington’s services in violation of the TSR and Consumer Financial Protection Act of 2010. The Bureau also alleged that the principals substantially assisted in the company’s violations of the TSR and CFPA. The Bureau filed its complaint jointly with the Attorney General for the State of Georgia. The order bans Burlington and its principals from telemarking with respect to any consumer-financial product or service and from offering, marketing, selling, or providing any financial-advisory, debt-relief, or credit-repair service. The order also requires Burlington and its principals to pay a total civil money penalty of $150,001, $15,000 of which will be remitted to Georgia, and it imposes a judgment for redress of at least $30 million to be suspended upon payment of the civil money penalty.