Process server was cited by state investigators
State investigators in 2003 cited former Las Vegas police officer Maurice Carroll for operating as a process server without a license, but he did not appear on their radar again until a couple of months ago, when justices of the peace complained about his activities.
Las Vegas police are now investigating allegations that Carroll's latest process serving company, On Scene Mediations, submitted false affidavits in justice courts around the valley, potentially disrupting the lives and finances of thousands of civil case defendants.
On Scene Mediations is alleged to have filed affidavits swearing that it served defendants with copies of lawsuits, but in many cases the lawsuits were not served, police said. That resulted in judgments of default against some defendants because they failed to respond to the lawsuits in a timely manner.
The company's clients include widely known payday loan and debt collecting firms.
Police suspect that Carroll, 42, who left the police department in 2000 after roughly 10 years on the job, has been an unlicensed process server since 2003, but they said they have yet to substantiate their suspicions.
Mechele Ray, executive director of the Nevada Private Investigators License Board, said agency investigators issued Carroll a $2,500 citation in late 2003 after receiving a complaint that he wasn't licensed. The citation, approved by board members in March 2004, ordered Carroll to stop doing business, she said.
But Ray acknowledged that the agency has no record of any other action against Carroll until the Las Vegas justices of the peace complained about him in May.
The board now has an ongoing investigation of Carroll, she said.
Court officials said they don't know the scope of the problems On Scene Mediations created for Southern Nevada's courts, but police estimated thousands of cases could be affected. Records show that Carroll's company, which was run out of his North Las Vegas home, was doing about $50,000 in business a month, police said.
Detectives are seeking an arrest warrant for Carroll, who could not be reached for comment.
Most of the cases involving the alleged fraudulent affidavits are in Las Vegas Justice Court, but detectives also have found cases in the North Las Vegas and Henderson justice courts, police said.
Las Vegas Justices of the Peace Melissa Saragosa and Diana Sullivan, who dealt primarily with civil cases, uncovered the alleged scam.
On Thursday, Saragosa issued orders scheduling hearings in 68 cases linked to Carroll's company in an effort to determine whether his process servers lied in affidavits swearing they had served court papers on defendants.
The hearings involve lawsuits filed by two companies that used the services of On Scene Mediations -- Rapid Cash, a payday loan firm, and Richland Holdings, a debt collection agency.
In all 68 cases, which were filed in 2009 and 2010, the companies have asked Saragosa for default judgments against the defendants, claiming the defendants failed to respond to their suits.
But in her orders, Saragosa said the companies should come to court prepared to back up the affidavits submitted by On Scene Mediations with other evidence.
Saragosa plans to review the 68 cases in four separate hearings starting on Aug. 17, according to her orders.
District Court officials on Thursday also moved to assess any possible fallout there.
"When we become aware that there are potential fraudulent affidavits presented to the court, we have an obligation to look into it," said District Judge Jennifer Togliatti, who is overseeing the higher court's effort.
Togliatti said court officials have isolated less than 150 cases linked to the use of On Scene Mediations by Rapid Cash and Richland Holdings.
District Court cases involve legal disputes of more than $10,000, while Justice Court matters involve sums of less than $10,000.
Contact Jeff German at jgerman@review
journal.com or 702-380-8135 or read more courts coverage at lvlegalnews.com.
