The company, which has handled debt relief, bankruptcy, and litigation procedures for years, was forced to close permanently due to a lawsuit filed by the investment company, Naz II Holding LLC, against Tony Diab, head of the Litigation Practice Group, also known as LGP.
Reportedly, clients of LPG were transferred to Phoenix Law, Oakstone Law Group, or Gallant Law PC as a substitute for LPG as the legal partner who assisted them in resolving litigation cases. Well, it has been confirmed that the Litigation Practice Group is permanently closed since their client files have been submitted to these law firms.
Okay, here’s everything you need to know about the Litigation Practice Group lawsuit!
What is the Lawsuit Against Litigation Practice Group?
Tony Diab, who runs the Litigation Practice Group, is disbarred from the practice of law in California and Nevada for ethical violations as a lawyer, namely diverting settlement funds due to his clients into his own bank account. As a result, Diab is ineligible to practice law in California.
Discovering the fact that Tony Diab is currently running the Litigation Practice Group, Naz II Holding, an investment company, filed a lawsuit accusing him of operating a law firm in which he acts as president and secretary, in which he is not allowed to run and operate a legal practice because he already has a red label as a lawyer who was fired for a previous case.
LPG, run by Tony Diab, basically helps represent clients in lawsuits against debt collectors. Diab has now allegedly begun diverting revenue to take the lion’s share of proceeds from profitable debt, i.e., resolution businesses.
According to the complaint, Validation Partners is seeking investors to finance operations that buy receivables from marketing affiliates. In this case, the law firm used the affiliation to help identify clients who were in need of representation. Ultimately, the affiliate transferred their right to receive those payments from the law firm to the Validation Partners.
Plaintiff Naz II Holding made two investments in the operation, for a total of $4.5 million. However, starting last June, the law firm stopped making payments to Validation Partners, whereas the firm was still collecting funds from tens of thousands of client accounts. However, Tony Diab refused to send funds as needed.
Reportedly, the law firm spent $6 million to outright buy new client accounts between July and October. Finally, the plaintiff speculated that Diab would drain LPG from his assets.
So, if Diab’s looting scheme is allowed to continue, it’s certain that the Litigation Practice Group will not be able to repay Validation Partners (VP) and Plaintiff. Meanwhile, Diab will certainly continue the practice of LPG debt settlement through other entities that have no obligation to the VP or the plaintiff.
To note: For those of you who are victims of Tony Diab’s ethical violations, you can submit a complaint with the State Bar of California here.
If you are a client of the Litigation Practice Group, Will Your Funds Be Refund?
Since LPG’s clients have been transferred to Phoenix Law, you may wonder whether or not you will get a refund for the money you put into LPG’s account. We must first say that Phoenix Law, Oakstone Law Group, or Gallant Law PC have purchased a Litigation Practices Group account, and they are not entitled to a refund, according to one of the BBB complaints.
One complaint by the BBB Litigation Practices Group showed that LPG promised that they would be processing a refund. However, it is unclear whether you need to file a BBB complaint to get a refund or not.
If you are the one experiencing this, it’s highly recommended that you hire an experienced financial consultant who can help you resolve accounts payable and refund problems.
A bookworm and researcher especially related to law and citizenship education. I spend time every day in front of the internet and the campus library.
