A lawsuit accusing a company of using deceitful and abusive tactics has resulted in a judgment of over $811 million in restitution and penalties. The company in question provides services to immigrants held in federal detention.
Nexus Services has been ordered by the federal court for the Western District of Virginia in Harrisonburg to pay approximately $231 million in restitution. In addition, the company must pay penalties of $13.8 million to New York, $7.1 million to Virginia, and $3.4 million to Massachusetts. The judgement also requires Nexus Services’ subsidiary, Libre by Nexus, and its three executives to individually pay over $111 million in civil penalties.
“This ruling represents a triumph for numerous immigrant families who were victims of Libre’s predatory practices and suffered the loss of their hard-earned savings,” stated New York Attorney General Letitia James. She further emphasized, “Libre shamelessly took advantage of vulnerable immigrants and their loved ones for their own financial gain, which is both unlawful and morally unacceptable.”
James teamed up with state attorneys general from Virginia and Massachusetts, as well as the federal Consumer Financial Protection Bureau, in a lawsuit filed in 2021. The lawsuit alleged that the company had violated both state and federal consumer protection laws.
According to officials, the company made a pledge to ensure the release of immigrants on bond during the processing of their immigration claims. However, they deliberately concealed and misrepresented the actual nature and expenses associated with their services. In addition to this, the company also collected excessive fees that exceeded the face value of the bonds, resulting in thousands of dollars in additional costs for the immigrants. Furthermore, immigrants were subjected to wearing uncomfortable ankle monitors against their will.
U.S. District Judge Elizabeth Dillon highlighted in her ruling that the company does not possess a license as a bail bond agent or certification as a surety company by the U.S. Treasury. Rather, it operates as a service provider that serves as a mediator between immigration detainees, sureties, and their bond agents.
In a statement, the company expressed its intention to appeal the judgment, referring to it as a “shocking departure from normal American jurisprudence.” They argued that the judgment was made without evidence, without a trial, and without a damages hearing.
“We are dedicated to serving our clients, individuals who endure hardships and make sacrifices in pursuit of a better life. It is unjust for them to be treated as mere political pawns in the chambers of American legislatures or courtrooms,” emphasized the company.
