RICHMOND, VA – The U.S. Court of Appeals for the Fourth Circuit has upheld a nearly $811 million judgment against Nexus Services, Inc., its subsidiary Libre by Nexus, and three of its executives for operating a fraudulent scheme targeting detained immigrants.
According to court records, the Consumer Financial Protection Bureau (CFPB), joined by the attorneys general of Massachusetts, New York, and Virginia, filed a 17-count civil enforcement action against the defendants in 2021. The case centered on claims that Nexus and Libre by Nexus misled immigrant detainees into believing they were purchasing full-service bond assistance when, in fact, they were subjected to exploitative fees and deceptive contract terms.
The defendants allegedly promised “easy and affordable” immigration bond services, but in practice required upfront payments, GPS ankle monitoring, and monthly fees. Many of the contracts were only in English, though the consumers largely spoke Spanish or other languages, and consumers were misled into thinking their payments were reducing bond debt when they were not.
The appellate court noted that the companies are not certified bond agents or insurers and that their structure functioned as a middleman operation exploiting ICE detainees and their families.
After the defendants failed to comply with discovery obligations and ignored multiple court orders—including orders to produce evidence, appear in court, and retain new legal counsel—the district court entered default judgment in 2023. Additional sanctions included barring the defendants from presenting late-disclosed evidence and witnesses during the remedies phase.
In 2024, the district court granted a permanent injunction and awarded monetary remedies including:
- $230,996,970.84 in restitution to immigrant consumers.
- $555,678,100 in civil penalties to the CFPB.
- $7.1 million to Virginia, $3.4 million to Massachusetts, and $13.89 million to New York under respective state consumer protection laws.
On appeal, the Nexus defendants challenged the default judgment, exclusion of evidence, the injunction’s scope, and the damages awarded. The Fourth Circuit rejected all arguments, concluding that the district court acted well within its discretion and followed proper legal standards.
The court emphasized that the defendants had displayed a “pattern of knowing noncompliance” and “stalled and ignored the direct orders of the court with impunity.” It upheld both the procedural handling and substantive conclusions of the district court in full.
The case is Consumer Financial Protection Bureau et al. v. Nexus Services, Inc. et al., No. 24-1334.
