A federal appeals court has upheld a ruling that the company Nexus, formerly based in Augusta County, defrauded immigrant clients and owes $811 million in restitution and penalties. WMRA's Randi B. Hagi reports.
In 2021, the U.S. Consumer Financial Protection Bureau and the states of Massachusetts, New York, and Virginia sued Nexus and three of its executives for illegally deceiving and threatening thousands of clients in their immigration bond business. Last year, a federal judge ordered the defendants to pay about $231 million in restitution and $580 million in state and federal penalties.
On September 12th, attorney Zachary Lawrence appeared before the U.S. Court of Appeals for the Fourth Circuit, arguing that the lower court was too harsh in sanctioning the business. Lawrence tried withdrawing from representing Nexus in another federal lawsuit earlier this year, saying that Nexus had not been paying him for his legal services, but he was denied exit.
Nexus previously admitted to collecting nearly $231 million from immigrant consumers from 2013 - 2022.
ZACHARY LAWRENCE: These numbers, the revenues of Nexus, didn't represent actual consumer loss. … These consumers were desperate for release from jail –
JUDGE ALLISON RUSHING: I'm sorry. What was the evidence you presented of the amount that should be deducted, right? The legitimate costs that were charged.
LAWRENCE: I did not. I argued rather that based on the allegations in the complaint, benefit to the consumer, indeed –
JUDGE ROBERT KING: You didn't present any evidence.
The appeals court issued a revised opinion on Wednesday stating that Nexus ran "a nationwide fraud scheme that preyed on vulnerable and distressed immigrant consumers held in custody," and that the district court appropriately calculated restitution and monetary penalties.
