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Details on FL Debt Counselor Owing $100M & Filing for Bankruptcy

stacks-of-moneyThey say a man who defends himself has a fool for a client. Looks like that old adage extends to debt counseling professionals.

According to the Orlando Sentinel Timothy McCallen, a local area businessman who counseled countless people on how to eliminate debt from their life during the Great Recession, filed for bankruptcy and listed more than $100 million dollars in liability. McCallan received a judgment in February for $107 million in an Alabama bankruptcy for a large debt settlement law firm that was ultimate found to be a massive fraud.

“Thousands of customers signed up for debt settlement services offered by McCallan and paid him more than $100,000,000. Almost none of the money was paid to creditors of the customers as promised by McCallan,” U.S. Bankruptcy Judge William R. Sawyer wrote in an opinion entered in February.

In addition to the fraud judgement, according to records, McCallan was ordered to hand over a $1.5 million dollar home on the coast but delayed delivery alleging damage suffered during Hurricane Matthew. Investigators for the plaintiffs later learned no damage was suffered.

 

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