HOUSTON -- Local 2 Investigates debt collectors. The recession is not only hurting consumers. Small businesses are also struggling  to make ends meet when they can't collect money for their work.

KPRC Local 2 investigative reporter Amy Davis explains why some say debt collectors are taking advantage of the recession and making a windfall.

We caught up with Steven Guignard outside of a Katy gas station earlier this month.

"We want to talk to you about some money that you collected for several businesses," Davis told Guignard.  "They say you stole the money."

"OK. I don't know who you're talking about," Guignard replied.

We're talking about small businesses, engineering companies, framers and gravel suppliers all across the country, who say Guignard and his debt collection company Morgenthal, Meyers and Sterns, based in Katy, owe them thousands of dollars.

"They contacted us," said Troy Burrell.

Burrell owns a civil engineering company in Florida. He says Guignard's company called him and told him it could help him collect $10,000 owed by another contractor. Guignard would keep 20 percent and give Burrell the rest.

But Burrell says that's not what happened.

"When they were paid, they would just keep it," explained attorney Hugh Plummer Jr.

Plummer filed a lawsuit against Guignard for five companies who claim they were stiffed. The companies are now out $72,664.75 combined.

"So if you didn't give it to them, what did you do with the money?" Davis asked Guignard.

"I have no idea," answered Guignard, adding "You can talk with my attorney if you like."

We did talk with his attorney, who told us to look at the papers he's filed in court, denying all of the allegations.

But after a few minutes in front of our camera, Guignard said more.

"There's no stealing," he said. "I mean, I didn't steal the money."

"Well you didn't give it to them," Davis responded.

"Just like every other company, we've had some issues during the economy and we're trying to pull out of it," Guignard answered.

Plummer says the down economy is exactly why small businesses need every penny they earn; and that Guignard knows the companies are pretty desperate to collect outstanding debts.

"If you're a gravel supply company and you've bought rock from another company, and you can't pay them because you haven't been paid, it's a trickling down effect that effects everyone," said Plummer.

"We've got an economy that's in the toilet," said Burrell.  "You know, small businesses are struggling, and when you get somebody that wants to prey on these small businesses, frankly, at the worst possible time, I mean, I think it's deplorable."

Collecting on commercial debt is entirely different than consumer debt. None of the same protections apply to small businesses. When companies are owed money from other companies, taking them to court or filing liens on property is the only way to try to get that money back.

Some companies hire debt collectors like Guignard, and we've learned the allegations against him are so widespread that the Harris County District Attorney is now investigating.

"One would like to believe that it's all mistakes, but if it had been maybe one client, that would be one thing," said Plummer.

We discovered the state of Nevada ordered Guignard's company to cease and desist and stop collections there when they say he collected a debt and never paid the business he collected the money for.

When we stopped by Guignard's Katy office address listed with the Texas Secretary of State, we found it closed. When his clients say he stopped returning their calls, we tracked him down to get some answers.

"What you did with $72,000? Not the slightest clue?" Davis asked Guignard.

"Uh, I don't know," Guignard said. "Honestly, I don't. I'd have to look into it for you though."

The criminal investigation into Guignard and his business is on-going. The trial is set for next October.

As for the businesses and people who paid the money, thinking they were paying off debts that they owe, they will not be held liable for the money. In most cases, the businesses released the liens against the companies when they found out Guignard had collected the debt.