The Alabama Attorney General working with the Alabama Securities Commission has shut down what was one of the leading debt settlement providers in the nation. Allegro Law LLC and Allegro Financial Services LLC have been closed, with their assets seized by the court.
If you are one of the unfortunate victims of Allegro, the outlook is bleak. When another debt settlement company was shut down in 2008, it took over a year for the victims of Hess Kennedy to receive refunds. When they did, those refunds represented only 25% of what those clients had paid in.
Approximately $12 million was seized by the court, of which most is expected to be refunded to clients victimized by Allegro. The problem is that there are 15,000 clients that may make claim to receive a refund. That accounts for an average refund of only $800.
Those who paid in the most would likely receive the most. However, until the court appointed receiver has announced the repayment schedule, there is no way to know what the results will be.
Allegro was not licensed to provide debt settlement services to Alabama residents. Additionally, Allegro was found to be ineffective in reducing the debts of its clients. Allegro also falsely represented its services.
Allegro’s owner, Keith Anderson Nelms has been stripped of his law license in Alabama. This was a result of his pleading guilty to numerous rules of professional misconduct.
Attorney General Troy King had this to say:
“Now the Court has put an end to Allegro Law’s illegal operation, and has stopped it from continuing to exploit the clients it purported to serve. “People who were in desperate circumstances came to Allegro for help, and instead they suffered greater harm. With this ruling, Allegro will not be allowed to cause further damage, and steps are being taken to restore as much money as possible to the victims whose trust was betrayed. My office will not permit any person or business to operate massive scams within our state.”
This should serve notice to the other members of this “rogue industry” that the Attorneys General of several states are coming after these schemes to stop their citizens from fraudulent claims, exorbitant fees and ineffective results. For debtors that are looking for help, the message is to look elsewhere. Find a reputable credit counseling organization that can help you get your finances back under control.
Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.
Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.
In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.
Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."