Are you being sued on a debt relating to commercial real estate?

 At Hofer Hagan LLP, we are considering whether we should diversify into actively handling defense of commercial real estate (CRE) matters next year.  This would be a natural extension of our current practice in business debt defense.  If you are being sued in Indiana on a debt related to commercial real estate, whether a lease or a purchase, please go to www.hoferhagan.com and fill out the intake form.  We have no current plans to take on offensive cases.  Note that in some debt defense cases that we take, the defendants admit owing money, but the case may be worth taking to get settlement terms that make it affordable to pay.  

Update On Hofer Hagan's efforts representing consumers in Solar Fraud Cases and my thoughts on the new breed of Solar Relief firms

 Our law firm has been representing consumers in solar system fraud cases since the solar firm Pink Energy filed bankruptcy in the fall of 2022, leaving thousands of consumers with large solar loans and systems that either didn't work or barely worked.  It took a while, but we have settled a number of cases for consumers successfully, we completed one long arbitration and we have others in process.  

In 2025, seemingly out of nowhere, a number of "Solar Relief" companies sprung up promising they can help people get out of solar contracts. A lot of these seemed to be connected to and maybe just extensions of existing timeshare relief firms.  A few of the companies are law firms that just shifted to a solar fraud focus.  Given the work that we have to do for a couple dozen solar fraud clients, I wish them a lot of luck with the thousands of cases some of them seem to be taking on.  If you are hiring a solar relief company, I suggest that you ask them if they are a law firm. If they are not a law firm, when they say they "have lawyers", those lawyers by law represent the relief firm. They don't represent you.  If it is a lawyer, they should at least be regulated by the state supreme court where the firm is located, and if you have a problem with the firm you can file a complaint in that state.  If it is not a law firm, if it turns out to be a scam, you may be out of luck.  

By the way, I'm not saying all non-law-firm solar relief companies are bad. They can provide value just by assisting you with sending out a cancellation letter and establishing a position where you are withholding payments under the FTC Holder Rule.  As a general rule though, they can't represent you in arbitration and absolutely can't represent you in court.  The rules regarding whether an out of state law firm can represent you in arbitration are not the same from state to state, and in some states the rules aren't even clear.  For this reason our office has decided to not represent any homeowners in states other than Indiana.  I'm not knocking these multistate law firms though. In many states there are NO LAWYERS TAKING SOLAR CASES IN THE ENTIRE STATE, so an attorney with solar case experience reaching out to solar victims in those states is a positive thing as I see it. Almost all these cases that go to any proceedings go to arbitration not court, and arbitrations are usually via phone or Zoom.  I am reserving my opinion about multistate solar relief law firms is not because I don't think they know their stuff, it is because the ones that I have seen are taking so many cases that I don't see how they can do a good job on all of them.  

If you are screening a solar relief firm, google them, check them out with Google Gemini, ChatGPT or Copilot AI, and ask about them in forums on Facebook etc.  Compare their fees.  Pretty much everybody has to charge some fee up front or they won't be in business long.  We find that every solar case takes at least 8 attorney hours up front.  Some firms may use trained paralegals for this, but trained paralegals don't work for peanuts either.  Most of the reputable firms do the same thing we do, they get some of their payment up front, and some of it is contingent on getting affirmative relief for the client.  If you think that an attorney should take a 100% contingency fee, I can tell you that that simply isn't realistic.  Any firm that took that approach simply be outlasted by the lenders.  They would simply refuse to settle until the law firm ran out of cash and went out of business.  Secondly, the lenders could offer the consumers loan relief that included nothing for attorney fees.  That puts huge pressure on both the attorney and the client. 

Have You been sued in Indiana by Velocity Investments LLC? You really should read this.

 Our office was recently called by two different people who were sued by Velocity Investments LLC. When multiple people call us having been sued by the same party, I look into it because it is a sign that that party is suing a lot more people.  That is absolutely the case with Velocity Investments.

When I looked at Indiana's court website, I found that Velocity Investments filed about  775 lawsuits from May 1 to July 2, 2026.  That's just in one medium-sized state.  According to Google Gemini, they operate in all 50 states. They have been busy beavers. In Indiana, Velocity usually uses the Cleveland, Ohio-based collection law firm Javitch Block LLC (formerly known as Javitch, Block & Rathbone, LLP).  Those folks at Javitch Block have been busy beavers.  

Thanks to the filed complaints being available online, I looked at a handful of the cases filed, and in all of the ones that I looked at the consumers that were sued have a reasonable defense.  In a lot of cases, these are assigned accounts without proof of assignment.  In the one case we are actively litigating we demanded proof of assignment in discovery, and Velocity failed to provide it.  In other cases the cases involve amounts that are impractical for plaintiffs to litigate through arbitration, yet they are covered by arbitration agreements.  It is often worthwhile to use their arbitration clauses against them.  Finally, in any consumer debt defense case, there is always a chance that the creditor will take less than the amount claimed, and even less than the amount owed, in exchange for quicker payment.

The bottom line is don't assume that there is nothing you can do when you are sued by Velocity Investments, LLC.  Contact our law firm, Hofer Hagan, LLP.  Go to our website, www.hoferhagan.com. You can also call at 317-349-0887 and leave a message for our consumer attorney, Michelle Alyea.  

Lots of Solar Companies in Indiana have been building up complaints

 After more than three years of work we have finally been getting cases pushed through to conclusion helping Indiana customers of Power Home Solar/Pink Energy get out of fraudulent contracts, and out of oppressive loans.  While we have been getting results that matched our expectations, the process was longer and harder than we initially anticipated. Like most things though, the more you do it, the easier it becomes.  

We wanted to get a big picture of all the solar companies that were building up complaints in Indiana, so we did an Open Records Act request to the Indiana attorney general's office.  Keep in mind most people ripped off by companies of every type don't file formal complaints, and some formal complaints aren't meritorious, but looking at the list of solar complaints is still instructive.  

The Attorney General's office identified 73 solar complaints from 1/1/2019 until early January 2026.  Of those 30 involved Power Home Solar aka Pink Energy.  This was by far the largest share.  Number 2 was Modern Mill Solar with 7 complaints. Universal Solar Direct of Indiana had 5 complaints. Blue Raven Solar, Solar Mosaic, Next Level Solar, and Sun Power Solar all had 3 complaints. Nationwide Solar Installer Services LLC had 2 complaints and Suns OUt Solar Inc. had 2. There were a host of other providers with one complaint.  

So here is the rundown

Number 1 with a Bullet - the Runaway Complaint Leader with 30 complaints

Power Home Solar Inc. (aka Pink Energy

Number 2 - 7 Complaints

Modern Mill Solar

Number 3- 3 Complaints (tie) 

Blue Raven Solar

Solar Mosaic

Sun Power Solar

Next Level Solar USA

2 Complaints

Nationwide Solar Installer Services LLC

Suns Out Solar Inc.

Companies with 1 complaint:  Better than average?  

American Dream Solar and Window Inc. 

Sun Warrior

Shine On Solar LLC

Pro Terra Solar

Hightec Solar Inc.

Ohio Valley Solar

Posey Solar Inc.

Note that we also received from the Attorney General a separate list that was separated from the results above. I believe it was from a separate search on different criteria. My guess it included complaints that were not specifically linked to Solar contracts. It included complaints against

Go Green Education

G.E. Security

US. Solar Solutions

SOlar Energy/Solar Exxpress

Security Inc.

Home Solar

Blue Raven Solar

Renew solar - 5 complaints

Solar Strategies

Pro American Solar

Solar Energy

These complaints against Blue Raven and Renew Solar suggests that maybe these companies should have been higher in the master list.  

Some big companies are notably absent from this list: Sunrun and Sunnova.   This doesn't include solar lenders like GoodLeap (LoanPal), Sunlight Financial, Solar Mosaic, Dividend Finance, Technology Credit Union and Cross River Bank.  As a practical matter solar claims often have to be raised against the lenders. 

If you are looking for an Indiana attorney to help you with a problem relating to a residential solar system contract, I urge you to contact us at Hofer Hagan LLP.  As far as we can tell, we are the only law firm in Indiana that is actively representing consumers in solar contracts in an organized way.  Call us at (317) 349-0887 or fill out an inquiry at our website here.  https://www.hoferhagan.com/solar-energy-lawyer/

Coalition of State Attorneys General Call for Pink Energy's Lenders to Suspend Payment Obligations

 I am quite frankly amazed that the attorneys general in the 9 most afflicted states have gotten together and presented a common front, not just against Pink Energy - but against the lenders, practically demanding them to suspend payments.  From my point of view, it's the right thing to do - I've just never seen it happen before. I've seen tons of fraudulent operations where the fraudster works arm in arm with the lender, but the attorneys general won't do anything to upset the big money behind the lenders. 

Anyway - I'm treating this as a really good sign.  We are reassessing our strategy from scratch in light of this announcement.  

https://www.wsmv.com/2022/11/22/tenn-ky-ags-seek-help-customers-pink-energy/?outputType=amp

Prisoner's Dilemma and Debt Negotiation

 I love having a partner (Keith Hagan) who an expert in game theory.  We have business clients (multiple) who are just mired in debt to multiple creditors, any one of which can shut them down to the point where they can't pay any of them.  My partner uses the Prisoner's Dilemma scenario to keep the creditors at bay. To overly simplify, the knowledge of each of the players is the key to the outcomes on the prisoner's dilemma scenario.  Keith takes this very academic theory and finds ways to apply it in real life.  It is amazing to watch him work sometimes.  

Prisoner's Dilemma

Indiana Law Firm Hofer Hagan LLP is beginning work on Pink Energy / PowerHome Solar cases

 We are in the early stage of working up a number of  Pink Energy solar panel installation cases.  The deeper I get into it, the more that I see that it is a major project involving a lot of challenges.  I can see why a lot of lawyers want nothing to do with these cases. The company that created the mess, Pink Energy, is bankrupt. The potential clients didn't pay a lot up front, probably don't have a lot of money to spend on a lawyer, but are on the hook for a big loan to a mean old finance company.  The actual subject matter of the contracts is very technical and complex. Just figuring out, explaining and proving the defects is challenging.  

What we have going for us that a lot of lawyers don't is experience in using the FTC Holder Rule against lenders in consumer cases.  Pursuing claims against these lenders could yield very good results and has the potential to protect the clients against having to pay for nonfunctional systems for years to come.  

By the way, here's a good story from CBS4 about the problems of Pink Energy customers in Indiana. 

https://cbs4indy.com/cbs4-investigates/dozens-of-customers-heated-after-installing-solar-panels/

Hyundai is jumping the shark over its response to the auto theft scandal

 Hyundai has been under intensive heat after youtube posts showed how easy it is to steal certain Hyundai models. After a shocking delay, Hyundai announced a solution - an antitheft kit that can be purchased from and installed by dealers - for about $750.00.  As this article points out, an owner might be able to get an equivalent fix outside the Hyundai network for half that amount.  

I suspect that the class action lawyers are going to prevail on this and Hyundai will eventually be sending checks for $750 to affected owners, but that might be years from now.  Meanwhile, Hyundai is losing customers because they deserve to.  

I don't have and don't want cases involving defective Hyundai.  This is just a comment from an outsider looking in.  

The Fall of Pink Energy (also known as Power Home Solar): Don't let the lenders pull one over on you.

 Two years ago, Pink Energy, formerly known as Power Home Solar, was riding high. It was one of the leading companies in home solar installations and a two billion dollar valuation. This week, the company announced that it was shutting down operations and laying off the remainder of its 2,100 employees.

The company had built up a backlog of discontented customers relating to systems that weren't completed or were not working. Pink Energy blamed most of the problems on suppler Generac, but really that doesn't help any of the property owners stuck with problematic Pink Energy systems.  

I have been trying to find out more information about the finance companies used by Pink Energy.  Consumers who did not get what they were promised may have a full or partial defense against payment to the lenders if Pink Energy referred them to the lenders.  Lenders that I am looking at include Sunshine Financial and Technology Credit Union, but there may be many more. 

IF you have a Pink Energy system AND YOU LIVE IN INDIANA, please call me at 317-662-4529.  If you live in another state, go to www.consumeradvocates.org/find-a-lawyer and find a NACA lawyer in your state to talk to.  I can't return calls and emails from people not located in Indiana.  https://www.wral.com/hours-after-5-on-your-side-report-solar-company-goes-out-of-business/20487543/

Broadening our Horizons in Floorplan Defense - Kinetic Advantage, Carbucks, XL Funding, Backlot Cars

 Keith Hagan and I have represented hundreds of clients, defending them in lawsuits brought By Nextgear Capital and Automotive Finance Corporation, but in recent months, we have worked cases involving other floorplan lenders as well, Kinetic Advantage, XL Funding, Backlot Cars, and fielded questions regarding Carbucks.  If you have issues regarding any of these lenders, call Steve Hofer at 317-662-4529 or Keith Hagan a 317-531-4575.  

The Wild West in 401(k) investment scams

 One of the limitations in what investments you can put in 401(k) protected retirement savings plans is that the investment has to be a passive investment. That is: you can't start a business and put it in your 401(k), or more specifically, the performance of the business can't depend on your efforts.  

Lately I have seen a lot of sales pitches for what used to be considered to be risky investments to be put in peoples' 401(k) plans.  

The first is Cryptocurrency. Personally, I think cryptocurrency is a social cancer and should be illegal. I agree with Paul Krugman, Nobel-prizewinning economist. He says Crypto is becoming the new "subprime", and that's not a good thing. I agree with him that Crypto serves no socially-useful purpose, and it is used for socially harmful purposes like money-laundering and spreading cash through illegal enterprises.  It is also socially harmful because unscrupulous promotors can sell cryptocurrency "investments" to people who don't really understand Crypto - which is 99+% of the population including many people making their living off of it.  In my view, Crypto doesn't belong in your IRA at all.  If you ignore this advice, please limit your investment to what you can afford to lose.. If you get scammed, it is unlikely that the government or a private lawyer will be able to get your money back.

The second IRA scam is "Turn Key Real Estate Investments".  According to the seminars, the company helps you find and buy a property, then you hire the company to manage it, and you don't have to do a thing except pick up your money.  Well there is nothing passive about being a landlord. A property that is rented today may be vacant and torn up tomorrow.  Consider this: if the property being offered is such a cash cow: why is it being offered to you?  Why didn't the company buy the property itself? Most of these companies do own properties that they manage.  The cream they keep for themselves.  Ultimately, I think some of these operations will be found to be illegal, but that's not going to help most of the investors.  

The third - Precious Metals - see Cryptocurrency above.  If you don't understand the market, you are liable to get hosed.  

I may add to this post when I think of things.  However you decide to invest your money, I suggest that you diversify both the types of your investment and who you trust to hold onto your money.  People who invested all their money with Bernie Madoff made their first mistake by investing all their money with any single entity.  Don't invest in assets you don't understand.  

On Pareto Efficiency and Business Deals

 When I did my undergraduate degree at Purdue University, my major was in Management, and we didn't have minors as such, we had "concentrations". One of my "concentrations" was economics, and one of the courses that I took was Public Policy Economics. It was the most surprisingly useful course I took as an undergraduate. 

In addition to game theory (which I was familiar with as a poker player), there were three topics that I remember specifically: 1. he difference agenda setting can make in the outcome of a transaction; 2. the "prisoner's dilemma" scenario - (which I may cover in another post); and (3) the doctrine of Pareto Efficiency.  I want to talk about Pareto Efficiency because I use this every day.  

Pareto Efficiency is an economic theory that in its simplest terms says that there is room to make a deal if one party can be made better without any other party being made worse.  The corollary to that is that if a party can't be made better without another party being made worse, there is no room to make a deal. At the outset of every case I try to eyeball whether there is room to make a deal by determining whether we are already at a pareto-efficient state.  

Determining that there is room to make a deal is the first step, The first step is generally explaining to the client the dynamics of trade possibilities, and the second step is making sure the opposing party understands that their is an opportunity to making a deal rather than taking on litigation until the end.  

As a matter of policy we rarely take cases where I don't think there is room for a pareto gain. If I don't see room to make a deal, I explain to the client that I don't see a probable settlement, and we talk about the pros and cons of litigating the case in court.  In business cases and consumer cases, it rarely makes sense to take a case that you can see at the beginning is going to have to be fought to the bitter end.  This approach is why we can often take business cases where the amounts are around $250,000 and keep our attorney fees at $5,000 or less.  

https://en.wikipedia.org/wiki/Pareto_efficiency

A Marked Uptick in Collection Efforts by Nextgear Capital after Judgments

 Though Nextgear Capital hasn't been filing quite as many lawsuits since Covid hit, it looks like they have stepped up their efforts at collecting after judgment.  Many people have called us and told us they have received numerous telephone calls from Nextgear's in-house debt collectors.  Because these are business collection accounts, and not consumer collection accounts, the Fair Debt Collection Practices Act does not apply to these calls.  Nextgear has also been filing their Indiana judgments in the states where the debtor lives to take advantage of wage garnishments and other allowed collection actions in the debtor's state.  Don't panic if you get these calls. We have found Nextgear open to dealing on judgment debts. I urge you to call us to talk to us about how we can help you negotiate a reduced debt with Nextgear.  

After 8 Years A New Identity - The Beginning of Hofer Hagan LLP, the end of Consumer Law Office of Steve Hofer

 As of today, I am ending my practice under the name Consumer Law Office of Steve Hofer, BUT I have joined up with attorney Keith Hagan, and we have formed a new firm, Hofer Hagan LLP.  Other than the new name, not much is changing. Keith and I have been doing most of our cases together for a few years now. We are going to be trying out a few different website looks, but the practice will stay mostly the same.  Right now, we don't even have new phone numbers.  

BATNA - "Best Alternative to Negotiated Agreement"

 I was just introduced to the term BATNA - or "best alternative to negotiated agreement".  In short, as a prelude to negotiating a deal, you evaluate what your best alternative is if you can make no deal at all. This helps you determine the lowest possible offer that you will accept.  Now, as you dig into commentary on BATNA, you will see a lot more detailed analysis, but I think you get the idea. 

Even though the term BATNA is new to me, when we have engaged in negotiations, we have always told our clients to consider the alternatives to doing a deal at all. Also, keep in mind, the other side will be trying to guess your BATNA when determining what kind of proposal to make to you.  One of the things that we look out for is to look for situations when the other side is making incorrect assumptions that underestimate our clients' alternatives to making a deal.  

https://www.investopedia.com/terms/b/best-alternative-to-a-negotiated-agreement-batna.asp#:~:text=The%20best%20alternative%20to%20a%20negotiated%20agreement%20(BATNA)%20is%20the,no%20agreement%20can%20be%20reached.

Have you been scammed on a "Turnkey" Rental Property Investment Scam? Here are some thoughts

 I have been handling consumer law cases for over 30 years, and just recently I received my FIRST complaint about a "turnkey" rental property Investment.  I did some initial checking and my first impression is there maybe avenues where an attorney can help you get your money back.  

The first thing you have to understand is that whenever somebody is selling a security, and for our purposes think of "security" as a passive investment, both the person selling you the investment and the investment itself must either be registered or covered by an exception.  Now there are some very broad exceptions.  The smaller the investment and the lower the number of people to whom it is offered, the more likely that it is covered by an exception. Because both federal and state law apply to securities offerings, the offering must comply with both state and federal law to be fully exempt.  

In general a sale of a fee interest (traditional property ownership) in real estate is not a security, but when that property is sold as an income-producing asset along with services in managing the property, that property might be a security.  

The current crop of "turn-key" property "scams" look more like a security than traditional real property sales, because the whole spin is to combine the purchase of the property with management services that make renting the property practical. Promoters advise that putting a rental property into your IRA is a great investment. The thing is, rental property that is actively improved or managed by the investor is not allowed to be in an IRA. That's what makes these operations look more like securities investments than a pure purchase of investment real estate.  

"Turn-key" property sellers and managers are not necessarily scams, but keep in mind, a lot of these companies own portfolios of properties that they also manage to make money. Are they more likely to sell you the turkey that is a money-loser, or the prime property that is a cash cow?  

If you find yourself victimized by a Turnkey property operation, and either you, the property, or one or more of the promoters is located in Indiana, we would love to hear from you.  If the transaction has nothing to do with Indiana, You can find an attorney in your state at the National Association of Consumer Advocates website www.consumeradvocates.org.  

Have You been sued in Indiana by National Collegiate Student Loan Trust?

 After a hiatus during covid, it looks like National Collegiate Student Loan Trusts have begun to file lawsuits again all over Indiana.  If you get sued, please call us. These cases are not hopeless.  

Have you had a problem with The IRA Club or Alpine Capital Solutions, LLC? We would like to hear from you.

 We are investigating a complaint relating to real estate investments sold through The IRA Club in Chicago and Alpine Capital Solutions, LLC out of Indianapolis.  If you have or have had any issues with either of these firms, please contact us.  

Are you getting marketing text messages late at night? You might be able to sue for damages.

 Under the Telephone Consumer Privacy Act, or TCPA, a company is not supposed to engage in automated calling or text messaging without your permission. They also aren't allowed to send automated messages to you before 8:00 AM or after 9:00 PM your time.  I received a complaint from a person who is receiving late night messages repeatedly from patpat.com.  If you are repeatedly getting text messages you didn't sign up for, or outside of 8:00AM-9:00PM, please contact me.  

More Comments on Home Title Lock

 In the past couple of years, I've gotten calls from a couple of reporters who started an investigation into Home Title Lock. It is likely the most recent investigation was snuffed out by the (then new) pandemic.  I heard my first commercial for them in a long time, and I think things are about to heat up.  In addition, I saw this article on the Quicken Loans site that sure seems to me to read more like an advertisement than a journalistic piece.  

What I find interesting is that this article includes the first statistics I've ever seen in discussions about this problem. According to the article:

 "According to the FBI, 9,600 victims lost over $56 million in 2017 due to real estate and rental fraud. There are not specific numbers on home title theft, but many see these schemes as a fast-growing area of cybercrime."

Now let's assume these numbers are true. My argument has never been that home title fraud NEVER happens. My argument has been that it is REALLY RARE.  As this quote points, out these are NOT numbers specific to home title theft, but to all areas of real estate and rental fraud.  In my 34 years as an attorney, I have seen a number of cases involving real estate fraud, but none of them has involved forged title documents by a stranger.  The most common fraud I've seen is the "we buy homes" scam.  You've probably seen the signs on a telephone pole near you.  The thing that disqualifies this scam from what Home Title Lock  touts is, typically, the deeds and other documents are actually signed by the real owner, but under the misrepresentations of a con-artist.  The other common real estate fraud that I've seen is a relative or other trusted person using undue influence or misrepresentations to con an elderly or incompetent person into signing a deed.  Home Title Lock won't help in these situations, either.  Rental fraud? I've seen people without even any documented claim of ownership of a property pretend to be a landlord and rent it out.  In addition, there is a form of mortgage fraud that the victim is the mortgage company rather than a homeowner and that is a "straw buyer" fraud.  I haven't seen this fraud in at least 15 years, but it was big before the Great Recession.  

The bottom line is that I am guessing the number of cases that fit the description of Home Title Lock's advertisements is closer to 96 than 96 thousand, and if I'm right, the odds of you being a victim really is one in a million.  Note the odds of being struck by lightning are twice that, about 1/500,000.  

By the way, I'm apparently not the only person who thinks the problem described by Home Title Lock is overblown. I ran across this interesting blog post by attorney Nathan Hannah from Arizona. Attorney Hannah's also seems suspicious that the actual problem of title theft by forged deeds is rare, and he also analyzed a common title insurance policy and determined that it might cover such events anyway.  Also, whether or not it does, identity theft coverage through a homeowners' policy just might.  

(The subject of identity theft coverage in homeowners' policies opens another whole can of worms, one which might be the subject of a blog post later.  My limited personal experience with it leads me to believe that it is hard to make use of the coverage even when you are a victim of identity theft. A few years ago, I talked to a big table of consumer lawyers who do Fair Credit Reporting Act cases for consumers, and I asked if any of them had ever received a referral from an insurance company under an identity theft policy, or if they were ever retained to work for a consumer on an identity theft issue, and none of them had.  I just haven't seen evidence of an insurance company ever actually doing something for a policy holder on an identity theft case.)