Bob Lindsey: "No Such Thing As Debt" Financial Adviser Must Repay $14 Million to Texans
A guy who told debtors he could erase their credit card debt because there's no such thing as "credit" just landed into some money problems of his own: Bob Lindsey must repay $13.8 million to hundreds of Texans who signed up for his Freedom From Debt Alliance program.
Just imagine it all away.
"The jury found that [Lindsey and his various companies] used illegal 'debt invalidation' schemes that purported to help financially struggling Texans," according to a statement on the Texas Attorney General's Web site. Specifically, the jury found that Lindsey violated the Texas Deceptive Trade Practices Act and the Texas Credit Services Act.
We first covered Lindsey in 2009, when he was working as an agent for the "Credit Collections Defense Network," which is a program run by a Chicago attorney and his partner in Connecticut.
Lindsey solicited business from 263 Texans, but CCDN sought an injunction from the AG's Office, alleging that Lindsey kept CCDN's cut of the fees. Of course, since CCDN operated under the bizarre "vapor money" theory, which asserts in part that the Federal Reserve is not a legally valid institution, so therefore money doesn't actually exist, it was odd that CCDN sought official help in the first place.
The AG's Office subsequently froze the assets of Lindsey's various companies and he was ultimately barred from offering debt-relief services in Texas. (He was previously enjoined by the AG's Office in 1994 for selling licenses to conduct business for the "Child Support Collection Agency of America," a bogus collection agency. He had also pleaded no-contest in 1992 to "engaging in organized crime in the first degree."
Lindsey now runs something called Justice Debt Relief, which, according to the site, is based in Cheyenne, Wyoming. (Strangely, a notice states that the program is not available in Wyoming. Or Texas, for that matter.)
Of course, all Lindsey needs to do is explain to the district judge and the AG's Office that there really is no such thing as "debt," and I'm sure they'll let him slide.