Legal Collection Firm Loses $23.7 Million Is Poetic Justice?
October 11, 2010
The collection firm got a taste of what it is to be on the other side of the collection call. Aside from that, these attorneys’ troubles are not over yet. I am curious about what will happen to the missing trust fund moneys.
I think Attorneys, at least those I know, are generally terrified at the thought of any money going missing while under their care and custody in their trust fund. Hopefully the missing funds will turn out to be simply an accounting error. Stay tuned!
Friedman & Wexler, a collection law firm in Chicago that ceased doing business in July, has been ordered by a Cook County (Ill.) judge to pay a $23.7 million judgment to the state of Illinois.
The law firm oversaw delinquent student loan collections for the state between 1994 and mid-2006. The Illinois Student Assistance Commission (ISAC) filed a lawsuit against the firm in 2006, accusing it of improperly pocketing commissions and shorting the state on money owed.
Attorneys Mitchell and Norman Wexler, and the firm, have been named as defendants in other recent court actions this year. In April, HSBC Finance Corp. sued the firm for more than $400,000 in funds intended to be held in trust for the bank – but were missing, see story. The case has not been settled.
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