Nicholas Malfitano Jun. 22, 2016, 9:02am


PHILADELPHIA – On June 7, a Washington, D.C.-based consumer financial agency has filed a petition to enforce a civil investigative demand (CID) against J.G. Wentworth, LLC, a financial services firm headquartered in Radnor.

The Consumer Financial Protection Bureau (CFPB) filed its original civil investigative demand versus J.G. Wentworth on Sept. 11, issued as “part of a nonpublic investigation to determine whether persons involved in advancing funds in exchange for the rights to future payments from structured settlements or annuities have engaged or are engaging in acts or practices that violate, in relevant part, the Consumer Financial Protection Act of 2010 (CFPA) or any other federal consumer financial law (such as the Dodd-Frank Act).”

As part of this investigative demand, the CID requested “the production of documents, responses to interrogatories, and written reports.”

On Oct. 1, J.G. Wentworth submitted a petition to set aside the CID, which CFPB director Richard Cordray denied on Feb. 11. After meeting and conferring with CFPB counsel, J.G. Wentworth sent the plaintiff a written request to modify the CID.

On March 9, the CFPB granted JGW’s request and JGW made “three limited productions under the modified CID.” JGW now refuses to produce any additional materials. Accordingly, the CFPB petitioned the District Court for an order compelling J.G. Wentworth to comply fully with the modified CID.

“On April 26, J.G. Wentworth’s counsel informed the CFPB it would no longer produce documents or other information to the Bureau. On May 6, J.G. Wentworth confirmed that it would no longer comply with the CID. J.G. Wentworth has neither produced the requested materials nor otherwise complied with the CID as modified by agreement.”

In this vein, the CFPB is asking the District Court for relief, to confer “an order directing JGW to show cause, if there is any, why an order should not be issued directing it to comply with the CID; upon the return of JGW’s showing of cause, for an order directing JGW to comply with the CID within 10 days of any such order, or at a later date as may be established by the Court or the Bureau; and such other relief as this Court deems just and proper.”

The petition to enforce the investigative demand is signed by several officials from the CFPB, including Acting Enforcement Director Anthony Alexis, Deputy Enforcement Director, Jeffrey Paul Ehrlich, and Enforcement Attorneys Carmen L. Christopher, Navid Vazire and Meghan Sherman Carter.

The plaintiff is represented by Christopher of the CFPB in Washington, D.C.

The respondent is represented by Reginald Brown and Benjamin Neaderland of Wilmer, Cutler, Pickering, Hale & Dorr, also in Washington D.C.

U.S. District Court for the Eastern District of Pennsylvania case 2:16-cv-02773

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com

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