The New York Attorney General’s Office has requested that a New York federal court compel a debt collection company and its owner to turn over documents in connection with a lawsuit alleging the defendants were part of a multimillion-dollar illegal debt collection scheme.
The lawsuit, brought by the Attorney General and the Consumer Financial Protection Bureau in November 2016, alleged that Mark Gray and Douglas MacKinnon orchestrated a massive scheme through their companies Delray Capital LLC, Northern Resolution Group LLC, and Enhanced Acquisitions LLC.
Specifically, the suit alleges that Gray and MacKinnon, through their companies, purchased tens of millions of dollars of defaulted consumer debt, added $200 to each debt (regardless of whether the contracts or law allowed such), and then collected the inflated debts through illegal tactics, including impersonating law enforcement officials and threatening consumers with arrest or legal action they had no intention of taking.
The motion specifically addresses defendants Gray and Delray Capital, alleging that both were served with interrogatories and requests for production more than two months prior to the motion being filed, and that neither had responded, despite repeated attempts by counsel for the Attorney General’s office to elicit responses.
The motion is the latest in a series of motions filed in the suit since discovery began. In October of 2017, the Court ordered MacKinnon and his companies to comply with a similar request that they had ignored. If the Court orders Gray and Delray to respond and they fail to do so, the A.G. intends to request that the Court strike their answer and enter default against them.