Scott Tucker has been arrested by the FBI for a payday loan scheme. Many millions of dollars. At least it wasn't drugs thim
Scott Tucker has been arrested by the FBI for a payday loan scheme. Many millions of dollars. At least it wasn't drugs thim
An alleged payday loan scheme. I hate it when people are assumed to be guilty by the public on first accusation. That's not how it works in this country.
http://abcnews.go.com/Sports/wireStory/pro-racecar-driver-scott-tucker-charged-payday-loan-36838155
Professional racecar driver Scott Tucker has been charged in a payday lending operation offering quick cash over the Internet to desperate people.
Authorities said Tucker was arrested Wednesday in Kansas City, Kansas, on charges in an indictment unsealed in federal court in New York City.
The indictment says Tucker and a lawyer also arrested Wednesday exploited over 4 million people in the United States who were struggling to pay basic living expenses. It says the operation charged interest rates as high as 700 percent or more using deceptive and misleading communications and contracts.
In 2012, the Federal Trade Commission sued Tucker in Nevada over the payday lending operation. The agency has said in court papers that Tucker pocketed at least $420 million unlawfully.
Tucker's lawyers did not immediately respond to messages seeking comment.
More: ($1.3billion? Jeepus!)
http://www.reuters.com/article/usa-paydaylending-lawsuit-idUSL2N1551OF
Jan 21 U.S. regulators have asked a federal judge in Nevada to order a professional racecar driver and various entities he and his late brother controlled to pay more than $1.32 billion for engaging in a scheme to deceive payday lending customers.
The Federal Trade Commission on Wednesday filed papers in federal court in Las Vegas seeking to force Scott Tucker and the estate of his deceased brother Blaine Tucker to pay up for allegedly running a deceptive online payday lending enterprise.
The FTC, which previously obtained $25.5 million in settlements with several payday lending companies in the case including AMG Services Inc, said the sum equals the $1.32 billion consumers paid beyond the disclosed cost of their loans.
The regulator said the scheme enabled Scott Tucker, 53, to receive at least $419.8 million and pay for luxury vehicles, private charter and jet flights, and for an $8 million residence in Aspen, Colorado.
Another $67.6 million was transferred to his racing team, Level 5 Motorsports, for "sponsorship" fees, the FTC said.
The regulator added that a complete tally of Tucker's payments was not possible as he invoked the U.S. Constitution's Fifth Amendment protection against self-incrimination.
Payday lenders provide small extensions of credit that borrowers agree to repay in a short time, such as when they next receive a paycheck.
While these companies say they help strapped-for-cash consumers, critics say their loans leave borrowers with lots of debt due to high interest rates, fees and loan rollovers.
Eighteen states and the District of Columbia prohibit payday lending, according to the advocacy group Consumer Federation of America.
Tucker's lawyers have previously said he was "a - if not the - target" of a related criminal investigation by Manhattan U.S. Attorney Preet Bharara's office.
A lawyer for the Tuckers did not respond to requests for comment on Thursday. In court papers, they said the FTC was seeking "to extract massive monetary relief without any statutory authority for doing so."
In 2012, the FTC sued the Tuckers and companies including Overland Park, Kansas-based AMG, which it said like other online payday lenders had affiliated itself with a Native American tribe to claim sovereign immunity from state laws.
In fact, the FTC said, AMG, which said it was owned by the Miami Tribe of Oklahoma, and related companies were controlled by the Tuckers, whose payday lending enterprise materially misstated the cost of consumers' loans.
The case is Federal Trade Commission v. AMG Services Inc, et al, U.S. District Court, District of Nevada, No. 12-00536. (Reporting by Nate Raymond in New York; Editing by Will Dunham)
2002maniac wrote: An alleged payday loan scheme. I hate it when people are assumed to be guilty by the public on first accusation. That's not how it works in this country.
It isn't being alleged that he operated a payday loan company. It IS alleged that said company used unfair & deceptive practices to scam folks out of more money.
There is no getting away from the fact that desperate payday loan customers suffer, people who can't afford to be scammed and loose money. If guilty, this guy needs to pay dearly.
My buddy worked for his race team for a few years. He always wondered at how much money they spent on stuff. The team he worked for folded a couple of years ago.
And this is just the trouble that he's in BEFORE the EPA gets a hold of him.
Having worked in collections, I think payday loans should be illegal period. Notice that most of them aren't even in the US--most of them originate from Indian Reservations.
pinchvalve wrote: There is no getting away from the fact that desperate payday loan customers suffer, people who can't afford to be scammed and loose money. If guilty, this guy needs to pay dearly.
+1 this is some incredible dirtbaggery he's being accused of 
I can't even remember who Bernie Madoff is now.
Bernie targeted rich jerks who were greedily trying to get richer. This (alleged) dirtbag targeted poor, desperate people who needed gas and grocery money. If guilty (and it certainly looks that way) he should be buried under the jail. The nationwide stress and pressure this (alleged) criminal is (alleged) to have inflicted on so many people is pretty shocking.
Looking beyond the crime to the victims.
It is more than a bit disturbing to see so many desperate people to prey upon. Regardless of whether they really are financially desperate to the point where they will accept such usury, or just to stupid to understand how interest rates work, it does not speak well for the state of the Union.
Where there is prey there are Lions doing what Lions do.
Being poor and unwise can be very expensive
If they actually charged him, he must have been doing some absolutely horrible things, because the legitimate payday loan people should all be rounded up and shot.
Worse than meth dealers.
A coworker used to be in the Air Force and said they were warned about pay day loan places, conveniently located just outside the front gates. Gotta give the slimy weasel credit for targeting the right audience: those barely getting by but also getting a government-backed check, so they know there'll always be a check to draw off of. Hard not to wish very bad things on this guy if he's found guilty.
In reply to kb58:
Ohio has laws against payday loan type things to active military.
This arrest has been a long time coming.
I honestly thought he was already arrested. I remember the issues that came about from the Indian lending stunt. It's so sad that he preyed on who he did. I absolutely hate the whole industry and what they do to the poor and unfortunately usually struggling members of society.
I would group many of the buy here, pay here car lots in the same group. A not so bright woman at work put $1000 down and $100 a week on a car not worth more than $500. Sadly a lot of people are ripped off this way too.
I frequently hear advertisements for a local fast cash/payday loan place while I'm at the gym and the stereo is blaring. They also do tax preparation. 
I've often thought about writing an expose piece for the local paper about the predatory nature of these places but, I'm busy enough with my job and family responsibilities. I know it's been done before, but it should be done again.
I agree that there needs to be some sort of oversight/regulation with these scum bag operations.
racerdave600 wrote: I would group many of the buy here, pay here car lots in the same group. A not so bright woman at work put $1000 down and $100 a week on a car not worth more than $500. Sadly a lot of people are ripped off this way too.
On the other hand a lot of the people who go to a buy here pay here lots have terrible credit for a reason. I have several friends that own car lots and the average repo rate is over 30%
Lots of people make terrible monetary decisions regarding cars at all socioeconomic levels. Look at anyone who buys a new luxury car they lose a lot more in depreciation in 2 months then your friend from work who does a buy here pay here loan.
I know from years of selling cars that all of the loan interest is spelled out clearly on multiple forms, including an exact accounting of what the loan will cost them. The problem is people never, ever, read what they are signing, who's fault is that? People need to take responsibility for their poor decisions.
etifosi wrote: It isn't being alleged that he operated a payday loan company. It IS alleged that said company used unfair & deceptive practices to scam folks out of more money.
Isn't that the basic business model of payday loan companies?
Honestly though don't quite a few industries prey on the poor... Some ran by the government. It's pretty much an American past time. Payday loans, gambling industry, subprime banking industry, tobacco industy, Mitsubishi motors, student loans, the Lottery. These all pretty much skim a little off the top to make peole rich off those that have the least.
People always get so worked up about the pay gap and war on the middle class but when you look at the rising debt industry it is no wonder that the pay gap has risen as more money is loaned. Those with the cash make more by loaning it to the greed of those without cash who borrow. Interest is effectively upward wealth distribution
In reply to nocones:
...try, tobacco industry, Mitsubishi motors, stu..
I laughed out loud at the grouping of Mitsubishi in there. We'll played my friend...
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