Collection services company in Cypress accused of fraud
A Cypress collection agency is being sued over claims it committed fraud by failing to give a client some of the overdue funds it recovered from debtors.
DAC Group filed a lawsuit on Aug. 12 in the Harris County District Court against Cypress resident Raymond Martin, also known as Newman and Kane, Newman Kane Inc., and Jonathan Pravecek, also known as Allen Richards & Associates, alleging breach of contract, conversion and common law fraud.
DAC says that it hired the defendants in early 2008 to collect debts from clients. According to the brief, DAC discovered the defendants failed to report or remit some of the overdue funds collected from its clients.
The suit alleges the defendants made excuses when questioned by DAC about the money and then failed to respond when DAC demanded a full accounting of all collections in November 2008.
DAC is seeking actual and exemplary damages, as well as attorney’s fees and court costs. It is being represented in the case by Houston attorney Mary Lou Summerville.
Harris County District Court Case No. 2011-47793.
This is a report on a civil lawsuit filed at the Harris County Courthouse. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.
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