Oregon Shuts Down Collection Agency for Over Complaints

State orders Salem-area collection agency to cease and desist‏.

The Hawkeye Financial Group, Inc. in Salem was closed for violations of Oregon laws governing collection agencies.

(SALEM, Ore.) - The Oregon Department of Consumer and Business Services has closed the doors of a Salem collection agency. The agency issued a cease-and-desist order against Hawkeye Financial Group, Inc. for violations of Oregon laws governing collection agencies. They also will face civil penalties in the amount of $13,400

According to records, James Carl Johnson and Danny Michael Lewitzke operated Hawkeye, a collection agency in the Salem/Keizer area, in 2006 and 2007. In connection with the business, Johnson used an alias of Jeff Darling, and Lewitzke used an alias of Daniel Rocha. The firm was not registered with DCBS as a collection agency in Oregon.

The department's Division of Finance and Corporate Securities (DFCS) began investigating Hawkeye after receiving complaints filed on behalf of Oregon businesses alleging that Hawkeye collected funds from debtors, then failed to forward the proceeds to Hawkeye's customers, and failed to report the status of accounts placed for collection.

DFCS found that Johnson and Lewitzke created a company brochure to market Hawkeye's services and distributed the brochures to prospective clients. The brochures contained numerous false representations about the scope and experience of Hawkeye's business.

The division also found that Hawkeye, Johnson, and Lewitzke failed to disclose to creditors and debtors that Hawkeye was not registered with DCBS as a collection agency.

"To protect consumers and businesses, Oregon law requires collection agencies to be registered," said David Tatman, administrator of the Division of Finance and Corporate Securities. "Collection agencies must not engage in dishonest or fraudulent practices in their collections business, and they are required to account for all the funds collected from debtors. We will sanction those who violate these and other requirements."

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