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DannLaw files suit against Athena Bitcoin for facilitating impersonation scams, former Ohio AG says company’s cryptocurrency kiosks are AR 15s of the financial services industry

Class Action Lawsuit

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An Athena Bitcoin cryptocurrency kiosk was the instrument criminals used to steal $39,000 from DannLaw client Karen Carew.

According to the Federal Trade Commission (FTC) and the FBI, Bitcoin ATM cryptocurrency kiosks (BTMs) play an essential role in “impersonation scams” that enable cybercriminals and scam artists to steal large sums of money from unsuspecting victims. Data from the FTC reveals that fraud losses at BTMs increased tenfold from 2020 to 2023 and that the amounts stolen via the kiosks are exceptionally high. But despite the well-documented rise in BTM-fueled fraud, companies like Athena Bitcoin, Inc. which operates hundreds of terminals across the U.S., have repeatedly refused to reduce or eliminate the extreme danger they pose to vulnerable populations, especially seniors.

The consumer protection team at Dann Law now represents one of those seniors: Karen Carew, a 74-year-old resident of Belmar, New Jersey. On September 4, 2024, a criminal impersonating a Microsoft tech support telephone agent convinced her to withdraw $39,000 from her bank account and deposit it into Athena BTMs located at two area convenience stores. Her money was immediately transferred into the untraceable online account or “wallet” of the scam artist. Both he and her money then vanished.

To hold Athena and the convenience stores accountable for their role in defrauding Ms. Carew and victims of similar scams, DannLaw attorneys Henry P. Wolfe, Javier Merino, and Andrew Wolfe recently filed a class action lawsuit in the Superior Court of New Jersey against the company, its CEO Matias Golenhorn, the owners of the stores where the kiosks used to facilitate the Carew scam were located, as well as other stores in New Jersey that have permitted Athena to locate and operate kiosks on site. The complaint and supporting exhibits may be viewed and downloaded here:  2024.11.25 Carew Complaint FILED

In the complaint the attorneys note that Athena openly acknowledges its kiosks are regularly used in impersonation scams as a page on the company website titled “Avoid these Bitcoin Scams” clearly illustrates:

Scammers are looking to say and do anything to convince you of an urgent need to pay through Bitcoin, and they will often “helpfully” point out nearby ATMs where you can follow their commands.

Scam artists like Bitcoin because transactions cannot be cancelled, reversed, or otherwise refunded once made.

Athena receives numerous reports of fraud per month…

The complaint also alleges that although Athena clearly recognizes the dangers posed by its BTMs it has refused to implement effective measures that would prevent or deter the use of its terminals in impersonation scams. Why? Because doing so would reduce the considerable profit realized from every dollar inserted into its BTMs by victims of those scams.

“BTMs are specifically designed to appeal to criminals, that’s why I consider them to be the AR 15s of the financial services industry,” DannLaw founder and former Ohio Attorney General Marc Dann commented. “They serve no purpose beyond enabling scam artists to wreak havoc and destruction on innocent victims and the complete and purposeful lack of safeguards enable them to inflict pain in rapid-fire fashion and disappear instantly. As Ms. Carew learned, that’s a formula for disaster.”

In addition to facilitating the impersonation scam, the complaint states that Athena refused to turn over the $39,000 Ms. Carew deposited into the BTMs after being notified of the theft even though the stolen cash was in their possession. Their refusal is based on the company’s position that all deposited into its terminals is “irreversibly” transferred as Bitcoin to the designated wallet, even if the wallet in question belongs to a criminal who has perpetrated an impersonation scam.

DannLaw contends that Athena’s position is misleading at best for two reasons: first, because Ms. Carew’s cash was still inside the company’s BTMs when they were made aware of the theft, and, second, because the hefty fee Athena charged to facilitate the crime, $10,060.04, was not transferred to the scam artist irreversibly or otherwise.

“In essence, Ms. Carew has been ripped off twice,” Dann said. “First by the criminal who robbed her and then by Athena which could, but refuses, to return her money. While their position is reprehensible, it is not surprising. Let’s face it, thieves like Athena rarely return stolen money to its rightful owners, especially if doing so would destroy their business model. It’s clear they have no intention of doing the right thing voluntarily, so we’re more than willing to use the civil justice system to both hold them accountable and educate the public about the dangers associated with Athena BTMs.”

The suit asserts four causes of action including possession of stolen property, violations of New Jersey’s RICO statute and Consumer Fraud Act, and gross negligence and seeks monetary damages for Ms. Carew and all class members

For more information, please contact Marc Dann at 330-651-3131.

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DannLaw founder Marc Dann
Attorney Marc Dann

Spring is celebrated as a time for renewal. Here at DannLaw, we’re marking the beginning of the season by renewing our commitment to seeking and securing justice for consumers who have been ripped off by credit card companies, banks and retailers, homeowners abused by mortgage lenders and servicers, and victims of identity theft and other cybercrimes resulting from data breaches.

That commitment, along with our knowledge of the law, experience, expertise, and ability to develop and utilize highly effective, innovative legal strategies have made DannLaw a consumer protection powerhouse people trust to safeguard their families, their homes, and their family’s future.

Building upon that and assisting more clients than ever before are our primary goals for 2024. Here’s a look on how we plan to achieve them…

DannLaw’s Forced Arbitration Practice Group battles for consumers trapped in an unfair system

Fueled by a series of Supreme Court decisions handed down over the past 40 years, forced arbitration clauses have been adopted by tens of thousands of companies that provide a seemingly limitless array of goods and services.

This has not exactly been a positive development for consumers. Shennan Kavanagh, the director of litigation at the National Consumer Law Center (NCLC) explains why:

“Forced arbitration robs consumers of their basic Seventh Amendment right to access the courts. These fine print traps allow predatory lenders, fraudsters, unscrupulous banks, and other repeat offenders to escape accountability by depriving consumers of choice and forcing disputes into closed-door, biased proceedings where consumers rarely win.”

By the way, “rarely” is an understatement. According to NCLC attorney Lauren Saunders, consumers who take on companies alone lose 96% of the time.

To make matters worse, a recent study released by NCLC revealed that the vast majority of Americans have no idea what a forced arbitration clause is or does or that they unwittingly agreed to clauses buried in the fine print of contracts they clicked “yes” to online or physically signed.

That lack of knowledge can have an extremely high price tag, a fact that doesn’t hit consumers until they become embroiled in a dispute with a company and discover they have no path to justice or reasonable opportunity to recover what they are owed.

The inequities in the system cry out for reform. That is why DannLaw has joined the NCLC and other consumer advocates in calling on Congress and the Consumer Financial Protection Bureau (CFPB) to end the forced arbitration reign of terror. To date, both have refused to act.

In reaction to their inexcusable inaction, DannLaw has formed a Forced Arbitration Practice Group led by attorneys Alisa Adams and Kurt Jones who have extensive experience pursuing and winning forced arbitration claims. Alissa, Kurt, and the Group’s talented paralegals are ready, willing, and more than able to take on banks, financial services firms, and any company that is using forced arbitration to prey upon, rip off, or exploit their customers.

If you or someone you know is a victim of forced arbitration, click here to arrange a free consultation with our Forced Arbitration team.

We are also available to co-counsel with attorneys who now represent clients with forced arbitration claims. To learn more about collaborating with us or to refer a client to us, please click here.

The companies and industries that have been inducted into the DannLaw Forced Arbitration Hall of Shame are among the worst abusers of the process, but they are not alone. As we noted above, thousands of other providers of goods and services use it to exploit consumers. We are prepared to battle them all.

 

 

Consumer Class Action Cases

In addition to helping our clients win forced arbitration cases, DannLaw regularly files suit on behalf of individual and groups of consumers whose claims are not subject to the unfair process.

We are currently litigating a number of class action suits in courts across the nation, and we will continue to seek justice and just compensation via the courts when that is the appropriate course of action. Here is a brief overview of some of the most interesting and consequential cases we are currently pursuing:

Financial Services Wells Fargo

Wells FargoIt should come as no surprise to anyone that we have once again filed class action suits against Wells Fargo. Despite having paid more than $27 billion in fines since 2000, Wells remains a serious serial abuser of its customers and other consumers. \The cases against Wells involve:

Mortgage Discrimination. We allege that during the time interest rates were low, Wells denied loans to applicants who were members of minority groups at a much higher rate than other lenders.

Adding services to customer accounts without authorization. We have filed a series of class action suits alleging that Wells made millions of dollars by adding services including credit protection, supplemental hospital insurance, life and disability Insurance and others to consumers’ accounts without authorization or permission. If you recently received a letter from Wells apologizing for this conduct, we would like to hear from you. Please click here to arrange a free consultation that will enable us to determine if you are entitled to financial compensation from the company.

Financial Services: Bank of America

We recently filed suit in North Carolina alleging that Bank of America opened unauthorized consumer accounts. If BOA opened an account in your name without your consent or permission, please click here to share your story with us. Like people who have been victimized by Wells, you may be eligible for financial compensation.

Retailers: Dollar General

Despite being exposed in media reports like this one featuring DannLaw founder Marc Dann, Dollar General continues to charge higher prices at the register than are posted on shelves.  We are now pursuing cases in New York, New Jersey and Oklahoma, but believe the company is engaging in the practice in other states. If this has happened to you at Dollar General or another store click here to tell us your story

Retailers: Walmart

We are investigating reports that Walmart is treating customers who use two forms of payment unfairly when they are due a refund. If this has happened to you, please let us know.

Data Breaches

Data breaches that enable cyberthieves to steal and misuse victims’ sensitive and confidential information is a growing problem in the U.S. That is why we are expanding our Data Privacy and Security Practice Group and working with the legal community to develop strategies that will ensure we can pursue and secure justice and just compensation for those put at risk when corporations, government agencies, and other entities fail to protect the personal data in their possession. As part of that effort, I am pleased to report that I was recently invited to serve on the prestigious Sedona Conference Data and Privacy Liability Working Group which is working to address challenging questions related to legal liability and damages.

You should be aware that health care companies and insurers have become a prime target for hackers and cyber criminals, a fact underscored by the class action suits we recently filed against Merch Health and Optimum Health.

If you have been or are ever notified that your personal data including but not limited to your driver’s license, social security, credit card and other account numbers, confidential health or medical records, or other identifying information has been hacked, stolen, or compromised, please contact our  data privacy team. immediately so we can begin protecting you, your family, and your future. Do not delay, every moment your data is exposed increases the chances it will be misused.

 Automobile and Motorcycle dealerships:

We regularly file class action suits against car, truck, and motorcycle dealers that add unauthorized products or services to vehicles, misrepresent the amount of the sale, and/or add hidden and opaque charges like “Documentary Fees” to sales agreements.

We have secured multiple multi-million-dollar awards for classes of auto purchasers and we will continue to actively and aggressively pursue claims on behalf of consumers who have been cheated or abused. If you are troubled or suspicious about something related to your vehcile purchase contact us today to arrange a no-cost, no-obligation consultation.

Foreclosure Defense and Mortgage Servicing Litigation Update

 DannLaw began by representing borrowers and homeowners who were in or about to be in foreclosure. Today, after helping thousands of people save their homes and their financial futures, stopping foreclosures and negotiating loan modifications continue to be a primary focus of our practice—and needed as much as ever.

That is because Ohio and New Jersey lead the nation in foreclosures, due in part to a surge in attempts by debt buyers to collect “zombie mortgages”— debts that homeowners thought were forgiven or satisfied long ago but still exist.

The key to our ability to save a home is timing: the earlier we get involved, the more we can do to battle mortgage lenders and servicers who engage in unethical or illegal activities like dual tracking—promising to modify a loan while moving ahead with a foreclosure action.

If you are in or are facing the threat of foreclosure DannLaw will utilize the tested, highly effective legal strategy that has helped thousands of families just like yours.

First, our experienced foreclosure defense team will aggressively defend and foreclosure action that has been filed,

Second, we will identify, document, and pursue claims you may have against your mortgage servicer for dual tracking, misapplying payments, failing to pay taxes or insurances, and other abuses, and,

Third, the members of our talented mortgage modification team will use their expertise to work out an agreement with your mortgage company that will enable you to stay in your home.

Remember, time is of the essence. Every minute you wait brings you one step closer to losing your home, do don’t delay, click here to contact DannLaw’s Foreclosure Defense team today.

Thanks for taking the time to read our Spring 2024 update and, as always, DannLaw is here to help you.

Marc

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DannLaw founder Marc DannAs most of you know, the next hearing in the supplemental unemployment benefit case is scheduled for Tuesday, January 24, 2022 before Franklin County Common Pleas Court Judge Michael Holbrook. If you are interested in attending the hearing it will be conducted in Courtroom 5B in the Franklin County Courthouse which is located at 345 High Street in Columbus. The hearing may also be viewed via a live stream here: https://www.fccourts.org/480/Live-Stream

As the day approaches, I want to commend the extremely talented attorneys who have from Day One been totally engaged in the battle to force Governor DeWine to do the right thing by     reversing his decision to deny tens of thousands of Ohioans the fully federally funded unemployment benefits they deserve and desperately need. Please join me in thanking Brian Flick of DannLaw, Andrew Engel of Advocate Attorneys, LLP, and Thomas A. Zimmerman, Jr. and Matthew C. De Re of the Zimmerman Law Offices. Absent their hard work and dedication this fight would have been lost long ago.

I also wanted to share the consolidated class action complaint we have filed. You may view it here: Bowling Candy 2023 01 02 TS Consolidated Class Complaint. I invite everyone to read the entire document. For those who would just like to cut to the chase I have pulled out what in legal terms is called our “Prayer for Relief,” and also provided a plain English summary.

In Plain English we demand:

  • That the named plaintiffs, Candy Bowling Candy, Shawnee Huff, James Parker, Sarah Russell, Sebastian Nash, and Zachary Dunn represent all the people Governor DeWine screwed over by callously and unjustly cutting off the benefits;
  • That DeWine did not follow the law which requires him to secure all available federal unemployment benefits for the people he is supposed to represent:
  • That the Court order DeWine to retroactively provide Federal Pandemic Unemployment Compensation (FPUC) program to plaintiffs and the members of the class;
  • That the Court order the governor and the state to immediately reinstate Ohio’s participation in all federal unemployment Benefit Programs;
  • That the state pays the attorney’s fees associated with bringing and pursuing the case;
  • That the judge does whatever else he believes are necessary to right the grievous wrong that has been done to so many Ohioans.

To boil it down even more we’re saying these are the people who were hurt, they shouldn’t have been, now give them the money.

If you prefer all of it in legalese read below. If you stop here, please know that we appreciate your support and your kind words. Your energy and commitment to fighting for what’s right has fueled our campaign for justice.

Wish us luck on the 24th, and of course we will provide updates after the hearing.

Legalese version of the Prayer for Relief:

Plaintiffs, individually, and on behalf of the Class, pray for an Order as follows: A. Finding that this action satisfies the prerequisites for maintenance as a class action and certifying the Class defined herein;

  1. Designating Plaintiffs as representatives of the Class and their undersigned counsel as Class Counsel;
  2. Entering judgment in favor of Plaintiffs and the Class and against Defendants;
  3. Declaring that (1) pursuant to O.R.C. § 4141.43(I), Defendants must secure all possible federal unemployment benefits available to unemployed Ohioans, (2) Defendants violated their statutory duties under O.R.C. § 4141.43(I) by prematurely terminating Ohio’s participation in FPUC benefits as of the week of June 26, 2021, and (3) Defendants’ continued failure and refusal to secure all available advantages on behalf of Ohio and Franklin County Ohio Clerk of Courts of the Common Pleas- 2023 Jan 02 2:11 PM-21CV004469 23 Ohio citizens, such as the FPUC benefits, is in derogation of Defendants’ constitutional powers and violates their clear statutory duties;
  4. Mandatorily enjoining and ordering Governor DeWine and Director Damschroder, in their official capacities, ODJFS, and Defendants’ officers, employees, and agents, all persons acting in concert or participation with any Defendant, or under any Defendant’s supervision, direction, or control to reinstate Ohio’s participation in FPUC, and use Ohio’s share of the Remaining Funds to retroactively provide the FPUC benefits to Plaintiffs and Class members;
  5. Ordering—pursuant to O.R.C. § 2731.01, et seq.—Governor DeWine and Director Damschroder, on behalf of the State of Ohio, to take all actions necessary to immediately reinstate Ohio’s participation in all federal unemployment Benefit Programs available from the United States Department of Labor, including restoring FPUC benefits to the State of Ohio, as is required by O.R.C. § 4141.43(I), or, in the alternative, promptly pay FPUC benefits due to Plaintiffs and Class members for the period beginning on June 26, 2021 through September 6, 2021, as is required by O.R.C. § 4141.28(I);
  6. Awarding Plaintiffs and the Class attorneys’ fees and costs, including interest thereon, as allowed or required by law;
  7. Granting all such further and other relief as this Court deems just and appropriate.

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DannLaw founder Marc DannBlue Line Solutions, LLC, co-defendant with Girard, Ohio in a class-action lawsuit filed by DannLaw and Zimmerman Law Offices PC on behalf of 7,700 motorists wrongly cited for speeding while traveling through the city on Interstate 80, has agreed to pay $175,000 to settle claims made against the speed camera company according to DannLaw founder and former Ohio Attorney General Marc Dann. The city of Girard has not settled and remains a party to the suit.

The $175,000 payment from Tennessee-based Blue Line will be distributed after all class members have been notified that the settlement has been reached and when the remaining claims in the suit against Girard have been resolved. Those eligible for compensation will automatically receive checks unless they choose to opt-out of the settlement and pursue legal action against the city and company on their own.

DannLaw and Zimmerman Law Offices PC filed the class action in July 2018 after being approached by a number of motorists who were erroneously ticketed by the city and Blue Line between December 7, 2017 and January 7, 2018. “The speed limit on the stretch of I-80 that passes through Girard had been reduced to 55 miles per hour while The Ohio Department of Transportation was repairing the road,” Atty. Dann explained. “The limit was raised to 65 when work was completed on December 7, but for the next month the city and Blue Line continued to cite people for speeding through a construction that no longer existed.”

“As a result, thousands of people paid fines of $100 to $150 they did not owe, many were charged substantial late and collection fees and those who appealed the citations were hit with an additional fee of $25 even though they had done nothing wrong,” Atty Dann said. “The entire situation was inexcusable and outrageous.”

55 mile per hour sign“Filing the class action was the only way to secure justice and obtain compensation for motorists victimized by Girard and Blue Line,” Atty. Dann said. “City officials won’t admit they were wrong, continue to falsely claim they were not aware of the fact that construction had been completed and the speed limit raised to 65 MPH, and refuse to refund money they essentially pilfered from innocent people. Now that Blue Line has settled, we are going to focus our efforts on holding city officials accountable for their actions—no matter how long that may take.”

Atty. Dann noted that there is also a public policy aspect to the case. “Our suit and the evidence we developed in the course of pursuing justice, shines a spotlight on the dangers that accompany privatizing important public services like law enforcement,” he said. “Blue Line, which does not answer to voters or taxpayers, could care less that bogus tickets were being issued and unfortunately, city officials were more than willing to abdicate their responsibilities as long as the dollars were rolling in.”

“This sordid affair makes it easy to understand why the General Assembly has repeatedly attempted to rein-in the speed camera racket,” Atty. Dann said. “Hopefully the information we’ve uncovered while litigating this case will advance that cause.”