The Bureau claimed that Libre and its owners are involved in a deceptive scheme where they offer to pay immigration bonds to secure the release of individuals held in federal detention centers.
Letitia James, the Attorney General of New York, revealed that her office, along with the Consumer Financial Protection Bureau (CFPB) and a coalition of multiple states, secured an $811 million victory against Libre by Nexus, Inc., Nexus Services, Inc., and their leaders, Micheal Donovan, Richard Moore, and Evan Ajin.
The company was found guilty of unfairly exploiting immigrants and their loved ones through deceitful and harmful practices. Libre specifically preyed on immigrants in federal detention centers and their relatives by offering exploitative contracts with unfair conditions.
“This judgment is a victory for thousands of immigrant families who lost their life savings and were targeted and preyed on by Libre,” said Attorney General James. “Libre exploited vulnerable immigrants and their families to pad its pockets, and that is illegal and unconscionable. Anytime a company harms New Yorkers with abusive and deceptive tactics, my office will not hesitate to take action to protect the most vulnerable.”
On February 22, 2021, the Bureau took legal action against Nexus Services, Inc. (Nexus Services), Libre by Nexus, Inc. (Libre), and their principals, Micheal Donovan, Richard Moore, and Evan Ajin. Both Nexus Services and Libre, which is a wholly owned subsidiary of Nexus Services, are non-banks based in Virginia.
The Bureau claimed that Libre and its owners are involved in a deceptive scheme where they offer to pay immigration bonds to secure the release of individuals held in federal detention centers. However, in reality, Libre charges consumers large upfront fees and hefty monthly payments, creating a debt that must be repaid to Libre. They create the impression that they have paid cash for the bonds, but in fact, consumers are required to make upfront payments and subsequent monthly payments to Libre.
On April 1, 2024, the district court issued a final ruling in favor of the Bureau and the states. The court mandated that the defendants must pay $230,996,970.84 for consumer redress, $111,135,620 in civil money penalties to the Bureau, and $24,390,000 in penalties to the states.
Additionally, the court prohibited the defendants from enforcing the use of GPS devices on consumers or collecting payments for GPS monitoring. Furthermore, the court required the defendants to provide clear and prominent written disclosures regarding product/service terms, fees, and assured that non-payment or noncompliance would not affect a consumer's immigration status or proceedings.
Libre's predatory practices have been put to an end by the ruling, which also mandates the company to compensate affected consumers across the country with a sum of $231 million. Additionally, the defendants are obligated to pay a hefty penalty of $580 million to the CFPB, New York, Virginia, and Massachusetts. Out of this, New York will receive $13.8 million in penalties, while $13.7 million will be allocated to assist affected consumers in the state.
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