CFPB Goes For Morgan Drexen's Jugular Over Fabricated Docs

By Brandon Lowrey (February 10, 2015, 9:14 PM EST) -- The Consumer Financial Protection Bureau on Tuesday pushed for default sanctions against Morgan Drexen Inc., which allegedly duped consumers into paying illegal upfront fees for debt-relief services, telling a California federal judge that company officials fabricated and destroyed evidence in the lead-up to trial.

During an evidentiary hearing in Santa Ana, California, CFPB attorney Gabriel D. O'Malley argued that a former Morgan Drexen executive's testimony shows the company created and altered bankruptcy petitions in June or July, after the bureau requested consumer files in discovery.

He blasted Morgan Drexen's contention that its only sin was mistakenly failing to disclose that creating...

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