Payday loan mogul charged with bankruptcy fraud
After allegedly creating millions in bogus debts and selling them to debt collectors, payday loan mogul Joel Tucker has been charged with federal charges. Tucker is said to have raked in $ 7.3 million from the alleged scheme, Bloomberg reported.
“Tucker defrauded third-party debt collectors and millions of individuals listed as debtors by selling forged debt portfolios,” the indictment reads. “These portfolios were bogus in that Tucker did not have a chain of title to the debt, the loans were not necessarily genuine debts, and the dates, amounts and lenders were inaccurate and in some cases fictitious.”
According to the indictment, which was unsealed after Tucker’s arrest in Kansas, he had the ability to carry out the scheme using the information obtained from the loan applications. For the alleged scheme, Tucker was charged with bankruptcy fraud, forgery of bankruptcy records and interstate transportation of stolen money.
The news comes months after Joel Tucker’s brother, Kansas racing car driver and businessman Scott Tucker, was sentenced to 16 years and eight months in prison for crimes related to his own payday loan business. According to a report in Reuters, the conviction was handed down by U.S. District Judge Kevin Castel in Manhattan.
In October, The Wall Street Journal, citing a Manhattan court ruling, reported that a federal jury found Scott guilty of violating federal truth in loan and racketeering laws through transactions on his $ 2 billion payday loan company. Prosecutors said the payday lending industry has grossed more than $ 3.5 billion through illegal partnerships, granting predatory loans and preying on millions of consumers in need of cash.
In addition to Scott, the jury also convicted Timothy Muir, 46, who was a former lawyer for Scott and also his co-accused. Muir was sentenced to seven years in prison. Although Scott made no comment on his sentencing, he did refer to a letter he submitted to the court in December, in which he said he had “remorse” and did not ” not recognize my responsibility to live as a good and fair businessman, employer and American citizen.