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The True Income Calculation for the Demirali Law Firm

11/27/04 an article was discovered that states that they now have 300,000 faxes.  The new calculation would now be $30 MILLION at $100 average settlement per fax.  

Demirali told us that they would not file suit unless they had at least 10 fax's assigned to his law firm against any one fax advertiser.  

Demirali has informed us that they have 7 assigned fax's against MBA Financial Group Inc.  They did not bother to attach the fax's or assignment's to the complaint.  (Wonder Why?, are they hoping to get more?)  In district court the faxes and assignments are considered "mandatory disclosure".   I guess there is something to be said for how collection attorneys operate. 

We are not sure why they sued us with only seven faxes.  Perhaps Martino has something to do with that.  Martino stated on the air "I'm going to sue your ass".  Martino has bashed MBA and Finney numerous times on his radio show stating that MBA and Finney are "scum bags".  He has written an extensive column about MBA on his web site.  View HERE.

Demirali claims to have over 200,000 faxes. (See Article in Denver Business Journal)   Let's assume that he only collects an average of $100 per fax.  That's $20 MILLION.   ($100 is low from what we have been told by many who have settled because it was more economical to settle for several hundred to a few thousand than hire an attorney to fight back).  

11/27/04 an article was discovered that states that they now have 300,000 faxes.  The new calculation would now be $30 MILLION at $100 per fax settlement. 

This whole thing is similar to a "feeding operation" run by collection attorneys that have found an easy way to make a fast buck. (More like Millions of bucks)  No wonder they have told us that the recently dismissed cases will be appealed.  They have a massive amount of money riding on the outcome.   Keep in mind, Demirali is just one of many collection firms that have jumped on this TCPA bandwagon (Nothing more than "Ambulance Chasers" on the Fax Highway.) 

Many of the parties getting sued will suffer a default judgment or settle out of court, as they are unable to finance the legal expenses required to answer the law suit.  This is the very reason these law suits are packaged up in this very calculated fashion.   

The calculation above does not take into account the numerous settlements obtained without going to court.  For example, they send out a letter demanding money prior to filing suit.  We have spoken to several people who have settled after getting one such letters.  

The above cases do not account for any County Court cases that may be pending.

Next time you need an attorney, why not consider the Demirali Law Firm?  Hire them for your next Personal Injury case at 1.6% contingency?  Demirali appears to have no concern working for this contingency arrangement litigating TCPA cases.  View their TCPA assignment.  Take note on how carefully the document has been drafted.  It does not state that if they collect $1,500 that the assignor will get only $25.  

This payment structure raises the legal question of champerty. (Click on champerty for definition) 

Demirali called MBA Financial Group's Inc. attorney just a few days after they thought they had a default judgment, trying to settle.   Demirali was under the impression that MBA had not filed an answer in a timely manner.  As it turns out they where mistaken as they had a new office person that overlooked that MBA Financial Group Inc. had filed an answer in timely manner.

Many are wondering what percentage of the settled cases Martino may be getting?  After all, Martino directed the majority of assignors to the web site registered to Martino, from his syndicated daily "Trouble Shooter" radio show.  Tom has a life style to support, Motor Homes and Airplanes. No Ego Here!   What is Martino doing with airplanes when the FAA does not have a record of a pilot license for him?  He has boasted about being a pilot on his radio show.  Did we overlook something, or is Martino telling a little white lie?  
(See next paragraph written 8/2/2004)

On August 2nd there was an article written by Paula Moore published in the Denver Business Journal.  In that article Martino claims that funds collected from his crusade go to Tom Martino Health Center Foundation.  Ms. Moore states in her article that these funds go to charity.  Little did I know about Martino's philanthropy when I wrote the paragraph above.  One would hope that Martino will make public the financial records related to his junk fax crusade.  This would allow consumers to see that the majority of his charity contributions are reaching people in need.  Time will tell, after all he certainly has no problem showing the public everything from his drums to his million dollar motor coach.  

It's unfortunate other Fax Litigation firms operated by collection attorneys Ball, Addison, Quiat and Greenberg (all separate firms) don't funnel the proceeds from fax litigation to charity.  If the public only knew how much money they are amassing... See the true calculation above.  

Bottom Feeders:  An article in the March, 2004 American Bar Association Journal addresses the business/marketing side of the practice of law in the emerging technological environment.  In a side bar to this article (page 37), Terry Carter details certain unsavory practices and abuses which have resulted in embarrassments to the legal profession.  The first example cited illustrates a pattern which bears some resemblance to these TCPA claims, at least in the following regards:  The bases of the claims were technical violations of a consumer protection statute.  There was a "dummy" corporation founded by the lawyers, which brought the suits.  The victims, typically small businessmen and women, were "shaken down" for substantial settlements, because the costs of defending against the claims had a coercive effect upon such Defendants. 

Those lawyers, the Trevor Law Group, have resigned from the practice of law, but the attorney general of California is suing them to recover the settlement proceeds, as well as civil penalties.  It is not the position of this editor that the TCPA Plaintiffs, or their lawyers, are engaged in any such extortion, or "shake down," but I invite the readers of these pages to read the article, and draw their own conclusions.



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