9/2/2019 N.C.

N.C. State Bar clears hurdle in 'unlicensed practice of law' suit against Orion Processing, Swift Rock Financial and World Law South - Triangle Business…
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PROFESSIONAL SERVICES

N.C. State Bar clears hurdle in 'unlicensed practice of law' suit against debt
relief companies

The North Carolina State Bar and the N.C. Department of Justice will be
allowed to move forward with a lawsuit against several companies the
agencies claim are engaging in the unlicensed practice of law.

By Jeff Jeffrey
Staff Writer , Triangle Business Journal
Nov 10, 2015, 4:51pm EST

The North C rolin St te B r nd the N.C. Dep rtment o Justice will be llowed to move orw rd with l wsuit g inst
sever l comp nies the gencies cl im re eng ging in the unlicensed pr ctice o l w.

The N.C. Business Court rejected motion to dismiss led by Orion Processing, Swi t Rock Fin nci l nd World L w
South in Nov. 9 decision, s ying the rguments presented by the comp nies were b sed on “str ined” re ding o
pplic ble st te l w.

The St te B r nd NCDOJ sued the comp nies in 2013, lleging th t they were eng ging in scheme to hold themselves
out s l w rm promising to settle consumers’ debts nd provide documents nd dvice to consumers in exch nge
or p yment. The compl int s ys the comp nies re ctu lly corpor tions under North C rolin l w nd re there ore
not llowed to hold themselves out s being ble to provide leg l dvice.

The compl int ccused the comp nies o eng ging in unl w ul debt djusting, un ir nd deceptive tr de pr ctices nd
un uthorized pr ctice o l w. The compl int lso n mes Orion owner Derin Scott nd World L w ch irm n Br dley
H skins s de end nts.

Writing or the Court, Chie Judge J mes G le sided with the St te B r nd N.C. DOJ. “The Amended Compl int
cont ins extensive, speci c lleg tions g inst the World L w De end nts nd WLS individu lly th t, t ken s true,
st te UPL cl im g inst WLS,” G le s ys.

The Business Court’s decision to llow the l wsuit to proceed is the l test leg l setb ck or Austin-b sed Orion nd
S cr mento-b sed World L w.

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9/2/2019 N.C. State Bar clears hurdle in 'unlicensed practice of law' suit against Orion Processing, Swift Rock Financial and World Law South - Triangle Business…

St te nd eder l o ci ls rom cross the country re going ter the comp nies or llegedly promising debt relie
services to thous nds o consumers but never providing those services. At le st our st tes h ve sued the comp nies
or ch rging leg l up ront ees nd m king lse promises o leg l represent tion.

The comp nies h ve lre dy been enjoined rom doing business in North C rolin ter W ke County Superior Court
judge determined they were improperly eng ging in the pr ctice o l w.

The comp nies re lso cing eder l l wsuit led by the U.S. Consumer Fin nci l Protection Bure u, which lleges
the two comp nies collected $67 million in illeg l ees rom t le st 21,000 consumers.

Orion h s lre dy led or b nkruptcy nd w s ordered into liquid tion in August by eder l judge in Austin.

Attorney Al red C rlton w s representing the comp nies until recently. He h s since withdr wn, ccording to the
Business Court decision. G le notes World L w is no longer represented by counsel.

K therine Je n, gener l counsel or the North C rolin St te B r, declined to comment on the c se, s ying it w s “not
proper” to comment on pending litig tion.

L st month, the St te B r re ched settlement with Leg lZoom in long-running dispute over whether the online
leg l service provider w s giving un uthorized leg l dvice. The settlement resolved $10.5 million l wsuit led by
Leg lZoom, which cl imed the St te B r w s illeg lly "monopolizing" the st te's leg l m rket by re using to register
Leg lZoom's prep id leg l pl ns m rketed to individu ls nd sm ll businesses.

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