WORKED." TONIGHT-- NEWS FIVE INVESTIGATES UNCOVERS HOW ONE MAN WAS ABLE TO EXTORT TENS OF THOUSANDS OF DOLLARS FROM BUSINESS OWNERS BY CLAIMING TO
BE A DISABILITY ADVOCATE.
HOW HE DID IT.
AND HOW HE GOT CAUGHT....
GOOD EVENING----- HE USED THE AMERICANS WITH DISABILITIES ACT TO MAKE MONEY....
AND NOW THIS MAN, HIS ATTORNEY, AND THIRD-PARTY...
LAW FIRM ARE IN MAJOR TROUBLE.
LAST YEAR-- CHIEF INVESTIGATIVE
REPORTER ERIC ROSS UNCOVERED AN ELABORATE SCHEME TO EXTORT MONEY FROM LOCAL BUSINESS OWNERS.
ONE CASE WENT TO FEDERAL COURT AND CHIEF INVESTIGATIVE REPORTER ERIC ROSS IS LIVE IN- STUDIO TONIGHT WITH THE
BOMBSHELL RULING.
ERIC--- IT'S A RULING THAT COULD PUT THIS MAN BEHIND BARS.
TERRELL FREDERICK CALLS
HIMSELF A DISABILITY ADVOCATE...
OVER A TWO-WEEK TIME PERIOD---WE FOUND HE FILED 43 LAWSUITS AGAINST COLORADO SPRINGS BUSINESSES---- ALLEGING THEY WEREN'T COMPLYING WITH A-D-A LAWS....
BUT HIS STORY QUICKLY UNRAVELED WHEN IT WAS TIME TO PROVE HIS CASE.
IN SEVERAL A-D-A LAWSUITS TERRELL FREDERICK FILED----HE CLAIMED BUSINESSES DISCRIMINATED AGAINST HIM AND HIS FAMILY BECAUSE THE DOORS TOOK MORE THAN 5 POUNDS OF
FORCE TO OPEN.
BUT THE PROFESSIONAL CYCLIST WITH NO DISABILITY---HAD NO ISSUE OPENING HIS APARTMENT DOOR....
ERIC ROSS: HI I'M ERIC ROSS WITH CHANNEL 5.
CAN WE TALK TO YOU ABOUT THE LAWSUITS YOU FILED?
FREDERICK: NO.
AND THEN SHUTTING THE DOOR AND REFUSING TO ANSWER OUR QUESTIONS.
"BASICALLY THIS THING IS A SCAM." SEVEN DAYS AFTER SUING PANDA EXPRESS---FREDERICK'S ATTORNEY SENT A LETTER DEMANDING
$2,750 TO DROP THE LAWSUIT.
IN MULTIPLE CASES WE REVIEWED---FREDERICK AND HIS ATTORNEY WOULD FILE IDENTICAL
LAWSUITS---AND THEN DEMAND THOUSANDS OF DOLLARS TO SETTLE...WITHOUT EVER ASKING FOR THE BUSINESS TO CORRECT THE ALLEGED VIOLATION...IF ONE EXISTED.
"THEIR PRACTICE WAS TO FILE THESE CASES.
IF THEY GOT A QUICK SETTLEMENT---$3,000 OR $5,000 WHICH WOULD BE LESS THAN IT WOULD COST THE BUSINESS TO HIRE A LAWYER, THEY GOT THEIR MONEY.
IF A LAWYER APPEARED AND ACTUALLY STARTED DEFENDING T CASE, THEY WOULD
JUST MOVE TO DISMISS THE CASE AND WALK WAY.
AND SO WHAT THAT TELLS ME IS THEY WEREN'T AFTER ENFORCING ADA VIOLATIONS IT WAS
JUST ABOUT THE MONEY." AND IN TWO-THIRDS OF THE CASES FREDERICK FILED---THE BUSINESS OWNERS FELL INTO THE TRAP.
UNDER THE LAW---A MONETARY AWARD CANNOT BE ISSUED FROM AN A-D-A LAWSUIT....A JUDGE CAN ONLY ORDER THE ALLEGED VIOLATION BE
FIXED.
THE ATTORNEY'S BEHIND THESE CASES KNEW THAT----AND BANKED
ON GETTING BUSINESSES TO SETTLE.
"THESE ARE NOT ADA ADVOCATES.
THEY ARE ADVOCATES FOR MAKING MONEY OFF THE ADA.
THE INDIVIDUALS ARE SOMETIME NOT DISABLED THEMSELVES.
CONGRESSMAN TED POE HAS
DRAFTED FEDERAL LEGISLATION TO CLOSE WHAT HE CALLS A LOOPHOLE IN THE LAW....ALLOWING ANYONE TO FILE LAWSUITS AGAINST BUSINESSES FOR A-D-A VIOLATIONS WHICH MAY OR MAY NOT EXIST
HOUSE BILL 620 HAS ALREADY PASSED THE HOUSE----AND IF
APPROVED----WOULD REQUIRE ANYONE FILING AN A-D-A RELATED LAWSUIT TO GIVE THE BUSINESS OWNER NOTICE OF THE VIOLATION FIRST AND THEN TIME TO CORRECT IT.
SMALL BUSINESSES DON'T HAVE THE MONEY TO FIGHT THE LAWSUIT IN COURT SO IN MOST CASES THEY PAY THE SHAKEDOWN TO THE ATTORNEY.
A DEPOSITION TRANSCRIPT NEWS 5 INVESTIGATES OBTAINED PAINTS A CLEAR PICTURE OF HOW THE SCHEME
WENT DOWN.
FOR EVERY CASE FREDERICK FILED....HE WOULD GET $50.
HIS ATTORNEY---JEFF
EMBERTON---WOULD GET $100....
THEN---THE MONEY FROM THE SETTLEMENT AGREEMENTS--- WHICH RANGED FROM 2500 TO 7500 DOLLARS WENT TO A LAW FIRM CALLED LITIGATION MANAGEMENT SERVICES, OR LITMAN.
"I THINK IT'S SAFE TO SAY CERTAINLY FOR LAWYERS WHO SIGNED UP FOR THIS SCHEME, THEY AREN'T ROCKET SCIENTIST ANY LAWYER WHO WOULD LET SOMEBODY ELSE USE HIS LAW
LICENSE AND SIGN HIS NAME TO PLEADINGS THAT HE IS RESPONSIBLE FOR FOR $100 A CASE IN MY OPINION
DESERVES TO HAVE HIS LICENSE REVOKED." WHEN IT CAME TIME FOR COURT---FREDERICK AND HIS ATTORNEY VIOLATED A MAGISTRATE JUDGE'S ORDERS TO PROVIDE
DOCUMENTATION TO PROVE THEIR CASE.
MAGISTRATE JUDGE KATHLEEN TAFOYA SAID THE PLAINTIFF AND HIS COUNSEL DISOBEYED COURT ORDERS...
AND WASTED RESOURCES...
SHE ORDERED THE PLAINTIFFS TO PAY FOR THE DEFENDENT'S ATTORNEY'S FEES....
AND TOOK THINGS A STEP
FARTHER.....RECOMMENDING THE DISTRICT COURT HOLD FREDERICK, ATTORNEY JEFF EMBERTON AND LITIGATION MANGEMENT SERVICES IN CONTEMPT OF COURT.
EMBERTON COULD LOSE HI LICENSE TO PRACTICE LAW...
JUDGE TAFOYA ALSO RECOMMENDED
THE DISTRICT COURT CONSIDER BANNING ANY FUTURE LAWSUITS FROM LITMAN WITHOUT PRIOR APPROVAL FROM THE COURT...
AND EVEN GOES AS FAR AS TO RECOMMEND JAIL TIME FOR THE PLAINTIFFS.
=================
AND WE HAVE BEEN ATTEMPTING TO REACH FREDERICK'S ATTORNEY, JEFF EMBERTON SINCE LAST YEAR.
HIS BUSINESS ADDRESS IS LISTED AS A P-O BOX AND OUR EMAILS AND MESSAGES HAVE NOT BEEN RETURNED.
WE ALSO DID REACH OUT TO LITIGATION MANAGEMENT SERVICES FOR COMMENT--- NOTHING!
THE JUDGE IN THIS CASE CLEARLY
DIDN'T BUY THE A-D-A ADVOCACY ARGUMENT....
IN THE COURSE OF YOUR YEAR-LONG INVESTIGATION--- YOU SPOKE WITH ADVOCACY CENTERS....WHAT'S THEIR TAKE ON THESE CASES?
WELL FIRST OFF--THEY SAY THE PEOPLE WHO ARE FILING DOZENS AND IN SOME CASES HUNDREDS OF
LAWSUITS IS ALARMING.
THOSE PEOPLE ARE NOT ADVOCATES....
AD -LI
-IT HURTS THE DISABLED COMMUNITY AND PEOPLE WHO FIGHT EVERY DAY TO MAKE OUR CITY MORE ACCESSIBLE.
IF YOU HAVE A STORY IDEA OR PROBLEM YOU'D LIKE ERIC TO LOOK INTO---CALL OUR TIP LINE.....719-228-6275 OR SEND AN
EMAIL TO NEWS FIVE INVESTIGATES AT KOAA DOT COM.