DOJ Settlement with Colony Ridge Sparks Legal Debate Over Victim Aid and Enforcement

The Justice Department has settled a predatory lending lawsuit against Texas developer Colony Ridge for $68 million, but U.S. District Judge Alfred H. Bennett expressed strong concerns because the agreement lacked victim compensation and included $20 million for law enforcement, a departure from the original fraud allegations. The DOJ chose to proceed without judicial approval, a move critics say effectively provides Colony Ridge a 'get out of jail free card' and leaves victims without recourse or court oversight.