MelHarris has drawn attacks from consumer advocates over its debt-collection practices, which include filing more than 100, 000 lawsuits in state courts around the country.
To get judgments against the borrowers, the judge said, a single MelHarris employee named Todd Fabacher signed 40, 000 affidavits attesting to the accuracy of debt claims.
The customer for these services was Leucadia, a financial-services firm that bought hundreds of thousands of defaulted debt claims for pennies on the dollar and hired MelHarris to recover what it could.