Barry Sturner, a longtime Chicago mortgage broker and founder of Townstone Financial, is finally seeing vindication after an eight-year legal saga waged by the Consumer Financial Protection Bureau (CFPB). The case, widely criticized as politically motivated and lacking legal merit, has now reached a potential turning point as the Trump administration has moved to vacate the original settlement and refund the $105,000 Sturner was forced to pay.
The saga began in 2016 when the CFPB accused Townstone of violating the Equal Credit Opportunity Act, not because of any formal complaints or denied applications, but because Sturner and his colleagues allegedly discouraged prospective minority applicants through remarks made on a radio show. Those remarks included comments about crime on the South Side of Chicago and offhand comparisons involving neighborhood safety—topics often discussed during Townstone’s real estate and mortgage show on AM560.
What set this case apart from the typical regulatory enforcement action was the complete absence of consumer complaints. As Sturner explained during a recent interview on Chicago’s Morning Answer, “We never had a complaint. Ever. Not one person said they were denied a loan or mistreated by us.” Yet the CFPB pursued Townstone under the theory that public comments made on radio and in social media posts—supporting Chicago police and highlighting rising crime—would discourage minority applicants from seeking mortgages.
According to Sturner, the CFPB originally demanded a $40 million settlement before ultimately dropping its request to $105,000, which he paid just before the 2020 election to avoid further legal fees. Sturner said he spent close to $1 million in legal costs over the years, while the nonprofit Pacific Legal Foundation (PLF) also devoted substantial resources to his defense. “They deposed everyone who worked for me in the last 10 years,” Sturner said. “They even had screenshots of my tweets supporting police in the South Loop during the looting in 2020.”
Earlier this month, the Trump administration’s Office of Management and Budget publicly apologized to Sturner during a cabinet meeting. OMB Director Russell Vought described the case as an egregious example of overreach by the administrative state. He noted that the CFPB enforcement division had targeted Sturner specifically because his firm advertised on conservative talk radio.
Adding to the controversy, court documents revealed that CFPB officials attempted to include punitive provisions in the settlement that would bar Sturner from working in banking, including as a teller. Sturner refused to sign that version of the agreement, and the case dragged on for years before the recent breakthrough.
Despite the CFPB and Townstone jointly filing to vacate the judgment, outside activist groups including the ACLU have filed briefs opposing the move, arguing it could unravel previous settlements secured by the agency. Their concern, Sturner says, has nothing to do with civil rights and everything to do with preserving the CFPB’s $12 billion enforcement record. “It’s always been an extortion racket,” he said, pointing to the agency’s origins under Elizabeth Warren.
The ordeal has taken a personal and professional toll. “They called me a racist for years,” Sturner said. “They tried to destroy my business, ruin my name, all because I spoke the truth about crime in Chicago.”
For now, Sturner is awaiting the judge’s decision on whether the settlement will be officially vacated. In the meantime, he continues operating Townstone Financial and remains vocal about the dangers posed by regulatory overreach and speech-policing by federal agencies.
“It’s not just about me,” he added. “This could happen to anyone. If we don’t push back, free speech in this country—especially if you lean conservative—is going to become a liability.”