The Justice Department’s U.S. Trustee Program (USTP) recently obtained a judgment of nearly $105,000 and a permanent injunction against bankruptcy petition preparers whose unfair and deceptive conduct caused a consumer to lose his home of over 20 years to foreclosure.

On July 2, the Bankruptcy Court for the Southern District of Texas entered a stipulated judgment against CA Enterprises, doing business as Premier Services and Premier Legal Services, and the company’s chief executive, Jescar Denno. Under the stipulated judgment, Premier and Denno paid the debtor almost $95,000 – including $84,032 in actual damages, $6,800 in statutory damages and $3,400 in returned fees – and paid the U.S. Trustee statutory fines of $10,500. Premier and Denno also consented to a permanent injunction in the district prohibiting them from, among other things, acting as bankruptcy petition preparers, soliciting and advertising bankruptcy assistance and providing legal advice.

The debtor paid $3,400 for assistance with a loan modification to save his home from foreclosure. After preparing a skeletal chapter 13 petition for the debtor to file, Premier and Denno provided no meaningful services to the debtor. The bankruptcy case was dismissed with a bar against refiling without court permission, and the debtor lost his home – along with substantial equity – in a foreclosure sale.

“This case is an example of the devastation that dishonest bankruptcy petition preparers can wreak on the lives of consumers afraid of losing their homes to foreclosure,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “The debtor can’t get his home back, but the stipulated judgment is a significant step toward making him whole again.”

The USTP’s San Antonio office filed a complaint alleging multiple violations of the Bankruptcy Code. Premier and Denno initially denied liability, but after discovery conducted by the San Antonio office, they agreed to the entry of a stipulated judgment on all 11 counts alleged in the complaint. Premier has also been barred from providing bankruptcy petition preparer services in at least three other jurisdictions: the District of Kansas, Eastern District of Pennsylvania and District of Maryland. (The USTP issued a press release about the Maryland matter in April 2024.)

The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.