The company Nexus that was formerly headquartered in Verona is once again facing consequences in federal court. WMRA's Randi B. Hagi reports.
Chief U.S. District Judge Michael F. Urbanski presided over a hearing held by video conference on Wednesday, in which one of the companies that has successfully sued Nexus argued that Nexus is still trying to dodge paying what they owe.
To recap, in 2018, RLI Insurance Company sued Nexus for falling through on a business agreement through which RLI was issuing immigration bonds for Nexus clients. In 2020, the court ruled that Nexus owed RLI $3.3 million and had to turn over their business records. The case has returned to court many times as RLI says they've barely received any money or documents.
Last fall, the court appointed a special master – who is an attorney unaffiliated with the case – to evaluate RLI's complaints. The special master reported last week that Nexus still had not supplied several records ordered by the court, including a complete account of all payments the company made to leaders Micheal Donovan, Richard Moore, and Evan Ajin.
Wednesday's hearing focused on RLI's attempts to hunt down two sums of money they're owed:
- $3 million, plus interest, that Nexus still owes on the 2020 judgment, and
- $275,000, plus interest, that Donovan owes in contempt fines.
As WMRA previously reported, one place RLI is looking for that money is in the pockets of Subversivo, LLC, the business established by a former Nexus employee that is handling all their financial transactions. Subversivo has not responded to requests for garnishment of Nexus's funds. The special master wrote that the contract between the two companies, [quote] "is little more than a badge of fraud."
Nexus attorney Zachary Lawrence said that Subversivo, although remaining silent about the $3 million, had cut a check for $2,700 toward what Donovan owes RLI. Somebody allegedly attempted to deliver that check to the court on Wednesday morning, but was turned away because it was made out to the wrong payee.
At the hearing's conclusion, Judge Urbanski ordered Subversivo to show cause why they should not be held in contempt. He is also considering whether to place Nexus in receivership, which would give a forensic accountant legal control of their financial records.
In other Nexus news, a law student alerted WMRA to another scheme which may have since folded. Last year, Libre by Nexus started advertising their new program called "Esperanza del Norte." According to a website that was functional as recently as January, Esperanza del Norte connected immigrants with U.S. citizen sponsors that the migrants would pay for. Libre by Nexus and Subversivo were listed as the companies making those sponsor referrals. The website also included a legal opinion written by Nexus attorney Zachary Lawrence.