First Amended Complaint — Wayne Clifford v. LexisNexis Risk Data Management, LLC (No. 2:21-cv-01145, D. Ariz.)

Summary

First Amended Complaint, Document 33 in Wayne Clifford v. LexisNexis Risk Data Management, LLC, Case No. 2:21-cv-01145-DJH, in the United States District Court for the District of Arizona, Phoenix Division, filed April 27, 2022. Plaintiff alleges that a person named Benson filed a Chapter 7 bankruptcy petition in his name, that Equifax reported it, and that LexisNexis did not conduct a reasonable reinvestigation after his dispute. Count I alleges negligent violation of the Fair Credit Reporting Act, 15 U.S.C. § 1681s-2(b), and Count II alleges willful violation. The closing prayer asks for judgment against LexisNexis for damages, costs, interest and attorneys' fees, with a jury demand.

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“First Amended Complaint — Wayne Clifford v. LexisNexis Risk Data Management, LLC (No. 2:21-cv-01145, D. Ariz.).” Original at ecf.azd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/amended-complaint-clifford-v-lexisnexis-dkt-33-d-ariz-08fb3e39e7/, SHA-256 59d54e32b66593ceb19fffe9bbc932dfb1083559caeb4032066bef2e064d1236.

Full text

Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 1 of 18

1 CY T. HANEY (State Bar No. 030634)
2 HILLTOP LAW FIRM
P.O. Box 9096
3 Phoenix, AZ 85068
4 Telephone and Fax: (602) 466-9631
E-mail: cy@hilltoplawfirm.com
5
6 Of Counsel to:
Credit Repair Lawyers of America
7
22142 West Nine Mile Road
8 Southfield, MI 48033
Telephone: (248) 353-2882
9
Facsimile: (248) 353-4840
10
11 Attorneys for Plaintiff,
Wayne Clifford
12
13 IN UNITED STATES DISTRICT COURT
14 FOR THE DISTRICT OF ARIZONA
15 PHOENIX DIVISION
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 2 of 18

1 Wayne Clifford, Case No.: 2:21-cv-01145-DJH
2
3
4 Plaintiff,
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6
vs. FIRST AMENDED COMPLAINT
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8
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LexisNexis Risk Data Management, LLC,
10 a Florida limited liability company,
11 JURY TRIAL DEMAND

12
13 Defendant.

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NOW COMES THE PLAINTIFF, WAYNE CLIFFORD, BY AND
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22 THROUGH COUNSEL, CY T. HAINEY, and for his First Amended Complaint
23 against the Defendant, pleads as follows:
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JURISDICTION
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26 1. Jurisdiction of this court arises under 15 U.S.C. §1681p.
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 3 of 18

1 2. This is an action brought by a consumer for violation of the Fair Credit
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Reporting Act (15 U.S.C. §1681, et seq. [hereinafter “FCRA”]).
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4
VENUE
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3. The transactions and occurrences which give rise to this action occurred in the
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8 City of Mesa, Maricopa County, Arizona.
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4. Venue is proper in the District of Arizona, Phoenix Division.
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11 PARTIES

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13 5. Plaintiff is a natural person residing in City of Mesa, Maricopa County,
14 Arizona.
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6. Defendant LexisNexis Risk Data Management, LLC (“LexisNexis”) is a
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17 Florida limited liability company that conducts business in the State of Arizona.
18
GENERAL ALLEGATIONS
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20 7. In January 2019, Plaintiff’s wife, Kimberly Clifford, met Benson at a business

21 networking conference. As they began to get to know each other, it was not
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long before they decided to do business together.
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24 8. During Plaintiff and Mrs. Clifford’s various conversations with Benson, the
25 latter (mis)informed them that he was in the process of purchasing a residential
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home at 5702 South Beck Ave in Tempe, AZ. The Cliffords, who
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 4 of 18

1 professionally find residential parcels to purchase, repair and sell at a profit,
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were interested in Benson’s purported project.
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4 9. Benson never had any ownership interest in the South Beck property, but
5 nevertheless, deceived the Plaintiff to pay Benson the sum of $12,500 to enter
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into a partnership in which Plaintiff would purportedly own one half of that
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8 property along with Benson.
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10.During this purported partnership, Plaintiff invested an additional five thousand
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11 dollars which was used to improve the property.

12 11.One time, while visiting the property with Benson, the true owners of the
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property showed up. Benson engaged in a physical fight with them and was
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15 subsequently arrested and booked for assault. Plaintiff soon learned that he was
16 conned and defrauded out of his money by Benson.
17
12.In April or May of 2019, Plaintiff began receiving paperwork from the United
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19 States Bankruptcy Court in Arizona, indicating that he had filed for Chapter 7
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protection. Plaintiff never filed for bankruptcy. Benson had forged the
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Plaintiff’s signature on a bankruptcy petition and used an equally bogus social
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23 security number therein.
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13.Plaintiff confronted Benson who had admitted that he filed the bogus petition in
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26 Plaintiff’s name as retaliation. Due to this fraudulent filed bankruptcy,
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 5 of 18

1 Plaintiff’s ability to obtain financing for his business and personal ventures had
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come to a complete halt and his health has been severely damaged and has
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4 declined.
5 14.Equifax was reporting the fraudulent Chapter 7 bankruptcy filing (“Bogus
6
Public Record”) on Plaintiff’s Equifax credit report.
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8 15.Plaintiff has not filed for bankruptcy in over ten (10) years.
9
16.On March 6, 2019, Benson fraudulent filed a Chapter 7 Bankruptcy petition in
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11 Plaintiff’s name in the United States District Court for the District of Arizona

12 (“the Court”).
13
17.On the bankruptcy petition, Benson placed an incorrect last four digits of
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15 Plaintiff’s SSN as 9827. The last four of Plaintiff’s SSN is actually 7375.
16 18.On the same day, the Court issued a Notice of Failure to Provide ID with the
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bankruptcy petition and a Notice of Incomplete Filings for failure to provide a
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19 list of creditors.
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19.On March 18, 2019, the Court issued another Notice of Incomplete Filings for
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failure to provide income information and pay stubs.
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23 20.On the same day, the Court issued an Order of Dismissal for the fraudulent filed
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Chapter 7 Bankruptcy filing.
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 6 of 18

1 21.Plaintiff received the notices from the Court and this is when he discovered the
2
fraudulently filed for bankruptcy in his name.
3
4 22.Soon after, Plaintiff contacted Benson. During the telephone conversation,
5 Benson admitted that he fraudulently filed the bankruptcy in Plaintiff’s name.
6
After this conversation, Plaintiff was unable to get in contact with Mr. Benson
7
8 again due to Mr. Benson changing his phone number.
9
23.On May 1, 2020, Plaintiff filed a police report with the Maricopa County
10
11 Sheriff’s Office regarding the fraudulent bankruptcy filing.

12 24.On May 2, 2020, Plaintiff obtained his Equifax credit disclosure and noticed the
13
Bogus Public Record reporting.
14
15 25.On or about September 8, 2020, Plaintiff submitted a letter to Equifax,
16 disputing the Bogus Public Record. In his dispute letter, Plaintiff explained that
17
he did not file Chapter 7 Bankruptcy. In support of this letter, he attached:
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19 a. the Equifax credit disclosure showing the error
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b. a copy of his police report.
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c. The fraudulent Bankruptcy Petition;
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23 d. Notification from the Bankruptcy Court showing that the purported
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bankruptcy that had been filed in his name was being rejected for want of
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26 positive identification of the Plaintiff;
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 7 of 18

1 e. Plaintiff’s Declaration under penalty that he did not file the bankruptcy
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petition, pay any fee for its filing
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4 26.In his dispute letter to Equifax, Plaintiff asked Equifax to remove the Bogus
5 Public Record.
6
27.Equifax received Plaintiff’s dispute letter and forwarded notification of his
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8 dispute to LexisNexis, the furnisher of this erroneous and financially damaging
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information to Equifax.
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11 28.LexisNexis received the Plaintiff’s dispute from Equifax and was required to

12 perform a reasonable reinvestigation into the Plaintiff’s dispute.
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29.As is Equifax’s practice, it also sent a copy of the Plaintiff’s supporting
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15 documents to LexisNexis to consider while conducting its statutorily required
16 reasonable reinvestigation.
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30.LexisNexis ignored the supporting documents provided by the Plaintiff and
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19 failed to conduct reasonable reinvestigation into his dispute. Indeed,
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LexisNexis callously disregarded Plaintiff’s supporting documents which
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plainly showed that he never filed bankruptcy and thus each of these defendants
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23 had willfully violated the Plaintiff’s right to a reasonable reinvestigation.
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 8 of 18

1 31.At the time that it was supposed to have conducted a reasonable reinvestigation,
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LexisNexis had in its database, all of the information from the bankruptcy court
3
4 showing that the fraudulent filed bankruptcy was not related to the Plaintiff.
5 32. In response to Plaintiff’s dispute, LexisNexis wrongfully confirmed the
6
accuracy the bankruptcy as belonging to the Plaintiff and informed Equifax as
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8 much, causing Equifax to continue to report the Bogus Public Record on
9
Plaintiff’s consumer credit file. This continued reporting of the fraudulent
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11 bankruptcy has caused the Plaintiff severe economic and emotional damages.

12 33.On or about October 3, 2020, Plaintiff received Equifax’s investigation results,
13
which showed that LexisNexis had verified the Bogus Public Record to Equifax
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15 refused to delete the Bogus Public Record.
16 34.As a direct and proximate cause of Equifax and LexisNexis’ negligent and/or
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willful failure to comply with the Fair Credit Reporting Act, 15 U.S.C. § 1681,
18
19 et seq., Plaintiff has suffered:
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a. Credit Damages. His livelihood depends upon him obtaining financing
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to acquire homes and the capital to improve them. After the bogus
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23 bankruptcy was reported on his credit report, Plaintiff has been turned
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down for loans that he had acquired before, due to the reported
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26 bankruptcy. One of his credit card lenders had terminated his use of his
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 9 of 18

1 credit card, making it even more difficult to meet not only expenses to
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pursue his vocation but to meet his day to day living expenses;
3
4 b. Lost credit opportunities. Mortgage rates have been at historical lows.
5 Plaintiff desired to refinance his house but has been prevented from
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doing so because of this bogus bankruptcy reporting on his Equifax credit
7
8 report.
9
c. Emotional damages. Plaintiff has also experienced undue stress and
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11 anxiety due to Defendant’s failure to correct the errors in his credit file or

12 improve his financial situation by obtaining new or more favorable credit
13
terms as a result of the Defendant’s violations of the FCRA. He has been
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15 humiliated having to borrow money from his adult children to meet his
16 day to day living expenses as he cannot work in his vocation for want of
17
financing;
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19 d. Aggravation of preexisting medical conditions such as heart problems,
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blood pressure issues and more.
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35.In this case LexisNexis acted as both a Credit Reporting Agency and a data
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23 furnisher.
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36.15 U.S.C. 1681a(f) defines a consumer reporting agency as :
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[A]ny person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly
26 engages in whole or in part in the practice of assembling or evaluating consumer credit
27 information or other information on consumers for the purpose of furnishing consumer reports to
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 10 of 18

1 third parties, and which uses any means or facility of interstate commerce for the purpose of
preparing or furnishing consumer reports.
2
3 37. 15 U.S. C.§ 1681a(f). The FCRA defines a "consumer report" as:
4 [A]ny written, oral, or other communication of any information by a consumer reporting agency
bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general
5 reputation, personal characteristics, or mode of living which is used or expected to be used or
6 collected in whole or in part for the purpose of serving as a factor in establishing the consumer's
eligibility for. .. credit or insurance to be used primarily for personal, family, or household
7 purposes.

8 38. LexisNexis is a credit reporting agency in this case and furnished a Consumer
9
Report to Equifax about the Plaintiff.
10
11 39. As a credit reporting agency, LexisNexis owed the Plaintiff a duty to assemble
12 a credit report with policies and procedures to assure maximum possible
13
accuracy. 15 U.S.C. 1681e(b).
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15 40.Because LexisNexis also furnished information about the consumer to Equifax,
16
also a credit reporting agency, it is also a furnisher and owes the Plaintiff a duty
17
18 to conduct a reasonable reinvestigation when it receives a consumer dispute
19
from him. 15 U.S.C. 1681s-2b.
20
21 COUNT I

22 NEGLIGENT VIOLATION OF THE FAIR CREDIT REPORTING ACT
23 BY LEXISNEXIS 15 U.S.C. 1681s-2b
24 41.Plaintiff realleges the above paragraphs as if recited verbatim.
25
42.After being informed by Equifax of Plaintiff’s consumer dispute of the Bogus
26
27 Public Record, LexisNexis negligently failed to conduct a proper investigation of
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 11 of 18

1 Plaintiff’s dispute as required by 15 U.S.C. § 1681s-2(b).
2
43.LexisNexis negligently failed to review all relevant information available to it
3
4 and provided by Equifax in conducting its reinvestigation as required by 15
5 U.S.C. § 1681s-2(b).
6
44. During its purported reinvestigation, LexisNexis had available to it, in its own
7
8 records, access to all of the Bankruptcy Court documents which proved that the
9
bankruptcy was filed with an incorrect social security number and that that
10
11 particular social security number was unverified and as a result, the Bankruptcy

12 Court, on its own volitation, dismissed the bankruptcy.
13
45.During its purported reinvestigation, LexisNexis had available to it, in its own
14
15 records, access to Plaintiff’s true social security number. Despite having all of
16 this information readily available to it, its investigators turned a blind eye to all
17
of this information and wrongfully confirmed the accuracy of the fraudulent
18
19 bankruptcy filing as belonging to the Plaintiff.
20
46.LexisNexis failed to direct Equifax to delete the Bogus Public Record from his
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credit files. The documents provided by the Plaintiff plainly showed that the
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23 social security number associated with the purported bankruptcy did not belong
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to Plaintiff.
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 12 of 18

1 47.The Bogus Public Record is inaccurate and creating a misleading impression to
2
users of Plaintiff’s consumer credit files with Equifax, causing him denial of
3
4 credit, lost credit opportunities, lost income, emotional distress and aggravation
5 of preexisting medical conditions.
6
48.As a further direct and proximate cause of LexisNexis negligent failure to
7
8 perform its duties under the FCRA, Plaintiff has suffered economic and
9
emotional damages, mental anguish, suffering, humiliation and embarrassment.
10
11 49.LexisNexis is liable to Plaintiff by reason of its violations of the FCRA in an

12 amount to be determined by the trier of fact together with reasonable attorneys’
13
fees pursuant to 15 U.S.C. § 1681o.
14
15 50.Plaintiff has a private right of action to assert claims against LexisNexis arising
16 under 15 U.S.C. § 1681s-2(b).
17
WHEREFORE, PLAINTIFF PRAYS that this court grant him a judgment
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19 against the Defendant LexisNexis for damages, costs, interest and attorneys’ fees.
20
COUNT II
21
WILLFUL VIOLATION OF THE FAIR CREDIT REPORTING ACT
22
BY LEXISNEXIS
23
24 51. Plaintiff realleges the above paragraphs as if recited verbatim.

25 52.After being informed by Equifax that Plaintiff disputed the accuracy of the
26
information it was providing, LexisNexis willfully failed to conduct a proper
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12
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 13 of 18

1 reinvestigation of Plaintiff’s dispute.
2
53.During its purported reinvestigation, LexisNexis had available to it, in its own
3
4 records, access to all of the Bankruptcy Court documents which proved that the
5 bankruptcy was filed with an incorrect social security number and that that
6
particular social security number was unverified and as a result, the Bankruptcy
7
8 Court, on its own volitation, dismissed the bankruptcy.
9
54.During its purported reinvestigation, LexisNexis had available to it, in its own
10
11 records, access to Plaintiff’s true social security number. Despite having all of

12 this information readily available to it, its investigators turned a blind eye to all
13
of this information and wrongfully confirmed the accuracy of the fraudulent
14
15 bankruptcy filing as belonging to the Plaintiff.
16 55.LexisNexis willfully failed to review all relevant information available to it and
17
provided by Equifax as required by 15 U.S.C. § 1681s-2(b). This willful failure
18
19 is the result of LexisNexis’ callous disregard for its duties under the FCRA to
20
conduct a reasonable reinvestigation and as to the Plaintiff’s right to have
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LexisNexis conduct such an investigation. A simple perusal of its own database
22
23 would have revealed the bogus nature of the bankruptcy filing as LexisNexis had
24
in its possession, at the time it was supposed to have conducted a reasonable
25
26 reinvestigation, information showing the Plaintiff true social security number. It
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13
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 14 of 18

1 also had available information showing that the Bankruptcy petition contained
2
the wrong social security number.
3
4 56.In the Credit Reporting Industry, the credit reporting agencies use 3 bits of data
5 to confirm the accuracy of information with a furnisher; the name, address and
6
social security number. If these 3 bits of information do not agree as between the
7
8 credit reporting agency and the furnisher, the credit reporting agencies do not
9
consider the information to be accurate. LexisNexis ignored this industry
10
11 standard and wrongfully confirmed a bogus bankruptcy as belonging to the

12 Plaintiff. Had LexisNexis complied with this industry standard, it would have
13
caused Equifax to have removed the bankruptcy notation from Plaintiff’s credit
14
15 report, saving him untold financial, emotional and health damages.
16 57.As a direct and proximate cause of LexisNexis’ willful failure to perform its
17
duties under the FCRA, Plaintiff has suffered economic and emotional damages,
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19 mental anguish, suffering, humiliation and embarrassment.
20
58.LexisNexis is liable to Plaintiff for either statutory damages or actual damages
21
he has sustained by reason of its violations of the FCRA in an amount to be
22
23 determined by the trier of fact, together with an award of punitive damages in the
24
amount to be determined by the trier of fact, as well as for reasonable attorneys’
25
26 fees and he may recover therefore pursuant to 15 U.S.C. § 1681n.
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14
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 15 of 18

1 WHEREFORE, PLAINTIFF PRAYS that this court grant him a judgment
2
against the Defendant LexisNexis for the greater of statutory or actual damages, plus
3
4 punitive damages, along with costs, interest and attorneys’ fees.
5
COUNT III
6
7
WILLFUL VIOLATION OF THE FAIR CREDIT REPORTING ACT
8 BY LEXISNEXIS OF 15 U.S.C. 1692e(b)
9
59. Plaintiff realleges the above paragraphs as if recited verbatim.
10
11 60.LexisNexis prepared, compiled, issued, assembled, transferred, published a

12 consumer report regarding the plaintiff as that term is defined in 15 USC 1681a
13
and furnished it to Equifax as it related to the Plaintiff. That report was patently
14
15 inaccurate.
16 61. LexisNexis regularly prepares these reports for Equifax and other credit
17
reporting agencies for a fee and uses interstate commerce for the purpose of
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19 preparing these reports.
20
62. Such reports contained information about the Plaintiff that was false, misleading
21
and inaccurate.
22
23 63.LexisNexis either negligently or willfully failed to maintain and/or follow
24
reasonable procedures to assure maximum possible accuracy of the information
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26 it reported to Equifax pertaining to the Plaintiff, in violation of 15 USC 1681e(b).
27
15
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 16 of 18

1 64.After receiving the Plaintiff’s consumer dispute to the Bogus Bankruptcy,
2
LexisNexis negligently or willfully failed to conduct a reasonable reinvestigation
3
4 as required by 15 U.S.C. 1681i. As noted above, LexisNexis had more than
5 ample information in its own database at the time it was supposed to have
6
conducted the reasonable reinvestigation, that proved that the bankruptcy filing
7
8 it was reporting on behalf of Plaintiff to Equifax was purely bogus.
9
65.LexisNexis’ failure to conduct a reasonable reinvestigation was willful as it
10
11 showed a callous disregard for its duties under the law and a callous disregard for

12 the Plaintiff’s rights to a reasonable reinvestigation under the Fair Credit
13
Reporting Act.
14
15 66.Alternatively, LexisNexis’ failure to conduct a reasonable reinvestigation into the
16 Plaintiff’s dispute was at least negligent.
17
67.As a direct and proximate cause of LexisNexis’ willful or negligent failure to
18
19 perform its duties under the FCRA, the Plaintiff has suffered actual damages,
20
statutory damages, financial and economic damages including loss of his
21
livelihood, termination of lines of credit to run his business, severe mental
22
23 anguish, aggravation of preexisting medical conditions necessitating hospital
24
stay, and suffering, humiliation and embarrassment.
25
26 68. LexisNexis is liable to the plaintiff by reason of its violation of the FCRA in an
27
16
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 17 of 18

1 amount to be determined by the trier fact together with his reasonable attorneys’
2
fees pursuant to 15 USC 1681o.
3
41.
5 WHEREFORE, PLAINTIFF PRAYS that this court grant him a
6
judgment against the Defendant LexisNexis for the greater of statutory or actual
7
8 damages, plus punitive damages, along with costs, interest and attorneys’ fees.
9
102.
11
12
JURY DEMAND
13
14 Plaintiff hereby demands a trial by Jury.
15
16
17 DATED: April 27, 2022
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19
20
21 HILLTOP LAW FIRM
22
23 /s/ Cy T. Haney
Cy T. Haney
24 Attorneys for Plaintiff,
25 Wayne Clifford

26
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Case 2:21-cv-01145-DJH Document 33 Filed 04/27/22 Page 18 of 18

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