Colony Ridge Victims Protest Proposed Settlement that Leaves Them Out
3/5/26 – On Friday 3/6/26, eight advocacy groups will protest a proposed settlement in two lawsuits involving the controversial Colony Ridge development in Liberty County. The State of Texas and U.S. Consumer Financial Protection Bureau alleged fraudulent marketing and sales practices by Colony Ridge. The proposed settlement would correct those moving forward. However, it does nothing to compensate past victims.

Parties Objecting to Proposed Settlement
The 30-page settlement proposed on February 9, 2026, requires Colony Ridge to invest $20 million to beef up law enforcement and $48 million to correct deficiencies in existing infrastructure. It also requires Colony Ridge to reform its marketing and sales practices going forward.
However, it does nothing to compensate the victims of past, alleged abuses. And as a result, eight advocacy groups have joined together to protest the settlement. They include:
- National Fair Housing Alliance
- National Consumer Law Center
- UnidosUS
- Public Justice
- Center for Responsible Lending
- Poverty and Race Research Action Council
- Southern Poverty Law Center
- League of United Latin American Citizens
At least one of the victims, Maria Acevedo, has also requested to testify tomorrow.
Basis of Amicus Brief
The advocacy groups’ 21-page amicus brief contends that a motion to join and seal the two cases…
“… improperly asks the court to approve and enforce relief that is unrelated to the pleaded case or the civil rights statutes under which it was brought, even as the proposed settlement fails to provide adequate relief to those harmed by the predatory and discriminatory scheme at issue.”
If the courts approved the proposed settlement, the cases would be over and sealed forever. But the settlement fails to provide any meaningful relief for those allegedly defrauded by Colony Ridge’s predatory lending practices, including:
- Seller-financed mortgages that ignored borrowers’ ability to repay
- Excessive fees
- Omitting total costs to install and connect necessary infrastructure, such as water, sewer and electrical utilities
- Misrepresenting flood risk and large expenses required to mitigate that risk
- Exorbitant interest rates as high as 12.9% – three to five times the prevailing rate
- Late fees on delinquent borrowers, compounding their inability to repay
- Targeting Hispanics, but not providing closing documents in Spanish
- Repeated and excessive foreclosures (an average of 298 per month comprising 92% of all foreclosures in Liberty County).
Colony Ridge repeatedly foreclosed on and then resold properties, profiting from any improvements made by previous buyers. The brief cites the case of one property sold four times in two years.
The amicus brief contends that the settlement proposes to “forfeit the meritorious claims alleged in the complaint, let Defendants off the hook, and leave consumers without compensation for the harms they have suffered.”
Scale of Alleged Harm
Although the brief does not provide exact figures, it says “tens of thousands” of consumers “lost thousands of dollars with little or nothing to show for the investments.” That would put total losses into the tens of millions of dollars.” Yet the agreement does not include any direct financial relief for consumers who lost money.

Nor does the proposed settlement provide any relief for those currently trapped in existing contracts. The original lawsuit sought an option to rescind sales contracts for families caught up in the scheme. However, the amicus brief says, “While the agreement creates a rescission option for future borrowers, [it] does nothing for existing consumers stuck in predatory contracts.”
Also, “It does not address the harm to the borrowers who purchased lots believing that they would not flood only to find that they did, or those who are stuck with unhabitable, flooded lots…”
Hearing Details
The Honorable Judge Alfred H. Bennett of the US District Court for the Southern District of Texas/Houston Division will rule on the issues raised in the brief on Friday, March 6, 2026.
Three lawyers from Washington DC who represent the advocacy groups will oppose the proposed settlement.
For those who want to observe, the Federal Courthouse is at 515 Rusk Avenue, Houston, TX. The hearing is reportedly in Courtroom 9A at 10:30.
For More Information
For more information and perspectives, see these statements published by:
National Fair Housing Alliance
Trautman Pepper Locke Law Firm
National Fair Housing Alliance
Maria Acevedo, a Colony Ridge victim, also hopes to testify tomorrow as an individual. See her personal letter to the court.
Posted by Bob Rehak on 3/5/26
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The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.






































