FTC Cracks Down on Phantom Debt Collection Scam, Freezes Assets of Fraudsters

The FTC secured a temporary restraining order and asset freeze against a phantom debt collection scheme allegedly operated by Ryan and Mitchell Evans through entities including Blackrock Services, Blackstone Legal Group, Capital Legal Services, Quest Legal Group, and Viking Legal Services. The defendants purportedly sent deceptive letters and made harassing calls, impersonated law firms and government agencies, and violated the FDCPA by threatening arrest, wage garnishment, and credit damage to coerce payment of non-existent debts. The lawsuit, filed in the Central District of California with unanimous Commission approval, aims to halt the scheme and obtain restitution for affected consumers.