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Home Compliance

Disbarred Attorney Secretly Running Debt Resolution Firm, Not Paying Investors, Suit Alleges

mikegibb by mikegibb
January 13, 2023
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An investment company has filed a lawsuit against a disbarred California attorney, accusing him of operating a law firm that represents consumers in lawsuits against debt collectors that has now started diverting revenue in order to “expropriate the lion’s share of proceeds” from a “lucrative debt resolution business.”

A copy of the complaint in the case of Naz II Holding v. The Litigation Practice Group, Tony Diab, and Validation Partners can be accessed by clicking here.

Diab has been disbarred in California and Nevada for ethics violations, including diverting settlement funds that were due to a client into his own bank account, according to the complaint. Diab is now running The Litigation Practice Group, according to the complaint, having installed a “figurehead” to act as the firm’s president and secretary.

Validation Partners sought investors to finance an operation where it purchased accounts receivables from marketing affiliates used by the law firm to help identify consumers in need of representation. The affiliates assign their rights to receive those payments to Validation Partners from the law firm.

The plaintiff made two investments into the operation – $4.5 million in total. Starting last June, the law firm stopped making payments to Validation Partners, according to the complaint. The firm was still collecting funds from “tens of thousands of client accounts,” but Diab had gone “rogue” and was refusing to remit funds as required, according to the complaint.

The law firm spent $6 million in directly purchase new client accounts between last July and October, according to the complaint.

“Diab is thus on course to drain LPG of its assets,” the complaint alleges. “If Diab’s looting scheme is permitted to continue, LPG will become unable to repay VP and Plaintiff while Diab continues LPG’s debt resolution practice through another entity that has no obligations to VP or Plaintiff.”

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Tags: Naz II Holding v. The Litigation Practice Group and Tony Diab
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Comments 30

  1. abrahan castillo says:
    4 years ago

    I was whit LTG for 2 years the only thing they do is stolen my money I’m looking for my money back

    Reply
  2. Lisa Dolan says:
    3 years ago

    I am one of the clients of Lpg. They didn’t even contact any of the accounts they were suppose to be representing for me. Is there anything I can do recover my money.

    Reply
  3. Deanna Allison says:
    3 years ago

    and what about all the people like me that paid them $11,000 to settle debts ,that never got settled or no legal represention from them at all ? had to start over after losing this money .i hope he rots in jail somewhere .

    Reply
    • Catherine Tooks says:
      3 years ago

      I had a Dept consolation program with Lpg they never did nothing with my Dept but was debiting my checking account up until March 9 never received a refund they old me about 3000 thousand dollars I want my money back

      Reply
  4. Eleanor Martin says:
    3 years ago

    I am the victim of this terrible scam I’m a 79 year old women never notified that they where closing

    I tried getting in touch with them a number of times I just want my money back

    The man who opened my account is Darren his #is 949 341-4075

    Reply
  5. Sheri Ackerberg says:
    3 years ago

    I have been with Lpg for several years. Nothing has been paid off. They collided their “fee” of several thousand dollars and I’m left here holding the bag. I have been sued 1time already for something they have in my program. I get the same old run around every time I call. I am now emailing daily, calling, waiting on hold for over an hour each time. I think this is a sham of a company. The “lawyer” they got me didn’t show up for court. Doesn’t return emails or phone calls. Is there any legal help with this

    Reply
  6. Sharon Dale Galperin says:
    3 years ago

    I gave LPG $20,917.00 dollars. I want it back!

    Reply
  7. Robert Griffis says:
    3 years ago

    I am a client of LPG and have not recieved any commnication from them in weeks.
    Has LPG been dissolved as a legitimate debt resolution company?

    Reply
  8. Shannon Marie Lotz says:
    3 years ago

    I am a client of this firm. I have paid them almost $20000! I have a bench trial on Monday and I have been trying to call them and email them. No response. Now my client portal is deleted!!! What can I do!

    Reply
    • Leann B says:
      3 years ago

      )contact phoenix law. They got many of lpgs accounts. I’m keeping my fingers crossed that they can help

      Reply
  9. Alicia Brienza says:
    3 years ago

    LPG stole $6,000 from me ! They never went to court to resolve my debt I was sued . I want a full refund asap they also sold my file to Oakstone aka LPG thousands of us have been affected and we need help !

    Reply
  10. Jennifer R Brooke says:
    3 years ago

    I too have been working with LPG and they have been taking money out of my account every month since August of 2022. and this March nothing was taken out. So i was curious tried to call them many times. On;y Today did one of my creditors call me stating they could not bet a hold of LPG so i found this on the web.
    WE all need to get our money back ASAP and some how get our credit restored as now it is worse off then before.

    Reply
  11. Ron Clutter says:
    3 years ago

    I’ve been lpg for a year and they didn’t do anything except take my money, now I’m being sued by creators because of what they didn’t do, so I would love to have all my money back plus some for what we’re going through, someone out there needs to help out with this matter for all of us

    Reply
    • Chelsea Nelson says:
      3 years ago

      Have you heard anything about getting refunded?

      Reply
  12. Chelsea Nelson says:
    3 years ago

    I am a current client with this company. I am not able to get ahold of my lawyer, and not able to access my profile through them any longer. I would like to know how I could get a refund and take my business elsewhere?

    Reply
  13. Marie Reinman says:
    3 years ago

    I to have been with this company for a while and nothing has been done and now being told that this new company Oakstone law group has taken over the case but in 3 months company will not answer calls has changed the name 2 times so stopped the ach

    Reply
  14. Kedar M says:
    3 years ago

    LPG contacted me by phone promised me and wife they could clear up our credit card debt in 2 years for a $409 monthly payment. At the time we had every card paid up and not one in collections. Now, our credit scores have plummeted and now every closed account is requesting payment…

    Reply
  15. Amanda B says:
    3 years ago

    In the same boat guys, I’m being sued by one of the companies that they were helping me w

    Reply
  16. Chris Heck says:
    3 years ago

    I also was scammed out of $5,000 dollars also ruined my credit and name . My business and way to earn a living is fastly going under due to this abuse. We need our money back and help from this disgusting behavior. May he rot in jail

    Reply
  17. Leslie Brooks says:
    3 years ago

    I have been with LPG since it was Coast Processing and have given them over $21,000 to get deb resolved, they have done NOTHING for me but cause law suit after law suit and wage garnisments. I could have paid off my debt by now, but I am still paying becuase they did not do what they promised. I have not been able to reach them in two months, I have tried calling, there is nothing on their website for appointments and now I find out that they filed bankruptcy.

    Reply
  18. Max Hite says:
    3 years ago

    I hired lpg for debt resolution and they moved me to another law group Oakstone Law Group. Last month they took two payments out and now won’t return my calls. Have I been scammed?

    Reply
    • RANDY GOODERMONT says:
      3 years ago

      My account was switched to Oakstone law group which is now not answering their phone.
      Very frustrating. Not sure what I can do.

      Reply
  19. Nicholas Winterton says:
    3 years ago

    Ive paid them for years and they never did anything too help my idk how many thousands of dollars I paid them what a joke im so upset omg

    Reply
  20. Jeffrey says:
    3 years ago

    Litigation practice group/Coast Processing Lpg Oakstone Law Group now Phoenix law, PC.
    I paid them for two years over $10,000.
    I was desperate for help, and I thought it was getting it. The whole purpose of the program they said was to invalidate debt, which they did not do to any of my debts. Within about three weeks they said they did not receive paperwork for any banking/credit institutions. That made the debt invalid. They said now, all they needed was time for the big credit agencies to take off the bad marks off my report. Never happened now they’re talking about bankruptcy and Settlements. If anybody can help me, please contact me. 657-347-2304. Jeffrey

    Reply
  21. Tommy R says:
    3 years ago

    I’ve given LPG $15,000 then got switched to Oakstone law then got switched to Phoenix. No response from any of them. I need my money back.

    Reply
  22. Anonymous says:
    3 years ago

    Worked at Phoenix Law which is the “sister” of Oakstone and “acquired” the clients from LPG/Gallant. Can say that for nearly all clients no cease and desists or Dispute Letters were sent at all. Clients are putting money in for months and getting absolutely nothing back. The only time I ever saw files with disputes ongoing were ones with LPG that moved to us, at which point nothing else happened. Can also verify Tony Diab’s car was seen multiple times parked at the office, lining up with this lawsuit alleging he continues to start new Law Firms and move clients while claiming the old one (LPG) can not pay their investors. LPG’s proxy Lawyer Daniel S March has also been suspended before and allegedly disbarred as well. Some templates internally at Phoenix were Gallant Law templates, indicating it is simply the same firm transferred over.

    I can’t give advice but I think this information speaks for itself.

    Reply
  23. Bill Russell says:
    3 years ago

    LPG took $22,000 & Phoenix Law has taken $5,000 out of my account over the last 4 months. No work was done as a result.
    I’m demanding a refund, or will sue Phoenix law.

    Reply
  24. Terry P says:
    3 years ago

    I filed with LPG 33 years ago. I paid my money and found that they never did the work. I now have debt collectors coming after me after 4 years. One is going to trial in June. I put my trust in them and they stole my money. This is maddening, and frustrating all in one. These people should have to pay everyone back that they scammed. Unbelievable, or is it?

    Reply
  25. GREG GETTES says:
    3 years ago

    To whom it may concern I sign up for lpg law to help out with my debt in the beginning I would get a message now and then then it just stopped this was 2018 I would call leave message nothing I paid them 465.00 a month for a year and that a lot since I am on social security and then I was upset so I looked on the internet and found that they went out of business so the lgp law had sent me an email stating that they sent my file over to Phoenix law group so I called plg to see if my file is there and it is and to my amaze there no better so now I had to get someone else to take care of helping me with my debt so I am asking for my &5.340 back but they will not give it back and for aggravation iam asking for &5.340 in restitution please help

    Reply
  26. Marlene burris says:
    3 years ago

    I was with them for a year. That disgraceful, disbarred lawyer to go to jail. I want my money back

    Reply

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