THE ATTORNEY GENERAL OF TEXAS
Ken Paxton

Major Lawsuits & Settlements

The following lawsuits represent just a small portion of active Attorney General enforcement actions that may be of particular interest to Texas consumers. You may also wish to visit our Consumer News Release page.
If you would like to learn more about the Attorney General's antitrust enforcement efforts please visit our Antitrust Lawsuits and Settlements page.

Latest Entry

U.S. Money Reserve, Inc / U.S. Rare Coin and Bullion Reserve

Alphabetical listing:

A&E Investments, Sweet Homes (September 2007)
Abell Mediation, Inc (December 2008)
Ad Telamerica, Inc (November 2007)
Advance Internet (June 2007)
American Design & Builders Inc, Milliard Group Inc (May 2007)
American Heritage Life Insurance Co (September 2007)
Ameriquest Mortgage Settlement
AOL (July 2007)
Austin Credit Doctor (June 2007)
Bioperformance
Body Solutions (February 2004)
CONSECO (July 2001)
Dell
Household Finance (December 2002)
Houston Car Dealerships (September 2004)
IFC Credit Corp (June 2007)
iMergent / Storesonline.com (August 2005)
Kaweah Indian Nation, Inc (August 2007)
Life Time Fitness (August 2007)
Main Optical, New Look Cosmetics (April 2007)
Mannatech (February 2009)
Norvergence
PacifiCare (March 2003)
Pfizer (January 2003)
Protective Life Insurance Co. (December 2007)
Purdue Pharma, Inc (May 2007)
RadioShack Corporation (April 2007)
Redux Beverages (May 2007)
Resource Life & other credit insurance co (March 2007)
Rosenberg Motel Operator (September 2007)
Second Chance Body Armor - Update September 2005
Select Medical, Select Physical Therapy (January 2008)
Service Life, Old United Life (October 2007)
SONY BMG Spyware (November 2005)
Sprint Nextel Corp (February 2007)
State Farm - Salvage Vehicle Titles (January 2005)
Sun Country Travel (June 2006)
SWWC Utilities
The Actors Place, L.A. Summit Talent (April 2007)
The St. Anthony Hotel (September 2007)
U.S. Money Reserve, Inc / U.S. Rare Coin and Bullion Reserve
United States Purchasing Exchange (April 2000)
Warranty USA (March 2002)

A&E Investments, Sweet Homes (September 2007)

Texas Attorney General Greg Abbott today concluded a lengthy enforcement action against central Texas manufactured home retailers who sold homes without clear titles. Owners of repossessed manufactured homes across central Texas will finally receive clear titles to homes they purchased in good faith from the unlicensed, fraudulent retailers.

Todays agreed judgment with unlicensed retailers Andrew and Edward Huizar of the former A&E Investments in Bexar County concludes the defendants legal dispute with the Texas Attorney Generals Office. Another defendant in the scheme, David Barroso of Sweet Homes, who defaulted by failing to contest the judgment, surrendered his retailers license in January 2006 and fled to Nevada.


Abell Mediation, Inc (December 2008)

Attorney General Abbott revealed the results of an enforcement action against a mortgage rescue fraud scheme.

Arizona-based Abell Mediation, Inc., and its president and vice-president, Elizabeth Cory and Michael Cory, respectively, were charged with fraudulently claiming that their company could save homeowners from imminent foreclosure. Homeowners who were delinquent on mortgage payments responded to the defendants solicitation cards and Web site. The defendants cards claimed that Abell Mediation, Inc. has saved over 7,000 homes from foreclosure, boasted about a staff of highly trained loss mitigation specialists with established relationships with mortgage lenders and banks nationwide and promised to achieve results that no one else can.

Under an agreement secured by the Attorney General, the defendants are permanently enjoined from conducting a foreclosure mitigation business in the future. The defendant is also required to pay a total of $1.55 million in fines, restitution and attorneys fees.


Ad Telamerica, Inc (November 2007)

Texas Attorney General Greg Abbott has filed an enforcement action against a fraudulent Yellow Pages company and its Carrollton-based owner for deceiving business owners, nonprofits, churches and other organizations.

Barbara Sommer and her company, Ad Telamerica Inc., which does business as Yellow Pages Directories, are charged with sending misleading direct mail pieces to businesses across the nation. The mailers suggest that the recipients had a pre-existing relationship with the defendants and therefore owed money to maintain their businesss Yellow Pages Directories advertisement. Although the word free appears in several locations, recipients who think they need to renew their advertisement are required to pay about $300 for the listing.


Advance Internet (June 2007)

Texas Attorney General Greg Abbott secured a court judgment against Advance Internet, also known as Texas Advance Internet, an unlicensed payday lender. The court judgment prohibits the El Paso-based company from continuing its unlawful predatory lending activities.

According to court documents, Advance Internets owner, John A. Gill Jr., used the guise of on-premises Internet access and instant cash to lure consumers into a payday lending scheme. Advance Internets customers, many of whom were military families, were essentially tricked into entering into fraudulent high-interest contracts.


American Design & Builders Inc, Milliard Group Inc (May 2007)

Attorney General Greg Abbott has frozen assets belonging to two Round Rock residents who unlawfully operated business exposition companies in Texas. The defendants were also charged with fraudulently marketing their businesses in violation of the law.

The district court issued a temporary restraining order requiring Farah and Adma Rabadi, both officers with Delaware-based American Design & Builders Inc. and Milliard Group Inc., to cease operating unless they obtain a certificate of authority from the state. The business had scheduled upcoming Building and Design Expos in Maryland, Missouri, New York and California. In addition to unlawfully marketing their expos, the defendants failed to obtain a certificate of authority from the Texas Secretary of State, which is required of companies that operate the expos in the state of Texas.


American Heritage Life Insurance Co (September 2007)

Attorney General Greg Abbott today reached a settlement with American Heritage Life Insurance Co. that provides meaningful protections for certain credit insurance purchasers. Under the agreement, more than 5,200 Texas vehicle owners who purchased credit insurance, and whose loans terminated between 2002 and 2006, will receive $1.7 million in refunds.