Business ProfileforNexus Services, Inc.

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

In February 2021, the Consumer Financial Protection Bureau (“CFPB”), the Commonwealth of Massachusetts, the People of the State of New York, and the Commonwealth of Virginia (collectively, the “plaintiff-states”) filed a 17-count complaint against Nexus Services, Inc. (“Nexus”), Libre by Nexus, Inc. (“Libre”) (collectively, “Corporate Defendants”), Micheal Donovan, Richard Moore, and Evan Ajin (collectively, “Individual Defendants”). Plaintiffs allege that defendants violated the Consumer Financial Protection Act (“CFPA”), the Virginia Consumer Protection Act (“VCPA”), and Massachusetts and New York consumer protection laws in administering “immigration bonds” for indigent consumers facing deportation.   Libre advertises its services to immigrants who are detained and may be released on bond. Neither Nexus nor Libre is a licensed bail-bond agent or a surety company certified by the U.S. Treasury.

According to plaintiffs, Libre falsely told consumers that it paid the full amount of the consumer’s bond to Immigration and Customs Enforcement (“ICE”). In addition, Libre falsely told consumers that the $420 monthly payments in the Original Agreement were repayments to Libre for the bond Libre paid, but the monthly payments actually went toward leasing the GPS device.

The court issued an order scheduling a bench trial for January 30 through February 17, 2023.  Defendants largely failed to produce documents and electronically stored information responsive to plaintiffs’ discovery requests throughout this litigation.   On May 11, 2023, the court issued a memorandum opinion and order finding each defendant in civil contempt.  The court set the damages/remedies hearing for August 15 and 16, 2023.

The Plaintiffs’ Well-Pleaded Claims; 1. Claims against all defendants under the Consumer Financial Protection Act (Counts 1–9). a. “Covered persons” under the CFPA. b. “Practice of deception” under the CFPA.  2. Claims against Nexus and Individual Defendants—substantial assistance under the CFPA (Count 10).   3. Claims under the Virginia Consumer Protection Act (Count 11).  (1) that Corporate Defendants were “supplier[s]” subject to the prohibitions, (2) that Corporate Defendants engaged in “consumer transaction[s]” with Virginians; and (3) that Corporate Defendants committed one or more “unlawful” “acts or practices.

4. Claims under the Massachusetts Consumer Protection Act and the Massachusetts Fair Debt Collection Practices Act (Counts 12–14).  Massachusetts also brings claims against defendants under the Massachusetts Fair Debt Collection Practices Act (MFDCPA).

5. Claims under the New York Executive Law and the New York General Business Law (Counts 15 and 16). New York also brings claims against defendants under the New York General Business Law (NYGBL), which prohibits deceptive acts and practices in the conduct of any business.

Defendants have a long history of violations. Libre “previously settled with Washington’s attorney general and several states’ insurance regulators for unlawful conduct and has faced legal proceedings from its surety company and a class of consumers, both of which resulted in contempt findings.”

III. CONCLUSION
For the foregoing reasons, the court finds that plaintiffs have sufficiently stated claims for which relief can be granted under the CFPA, the VCPA, the MCPA, the MFDCPA, the NYEL, and the NYGBL.  Entered April 2, 2024.

For the full details of the case go to: https://files.consumerfinance.gov/f/documents/cfpb_nexus-services-inc-et-al_complaint_2021-02.pdf.