Scott Tucker sentenced to 16 years, 8 months in prison following racketeering conviction for payday lending scheme, The Kansas City Starlet

Business

Payday lender Scott Tucker gets 16 years, 8 months in prison for $Two billion ripoff scheme

By Steve Vockrodt

January 05, 2018 03:34 PM

Scott Tucker, the Leawood businessman and professional race car driver who built a financial empire through an illegal payday loan enterprise, received a 16-year, 8-month prison sentence on Friday.

Kevin Castel, a judge for the U.S. District Court for the Southern District of Fresh York, almost split the difference inbetween requests by federal prosecutors for at least 20 years in prison and prayers by Tucker’s lawyers for no more than 15 years.

In October, Tucker, 55, was convicted of 14 criminal counts related to a $Two billion payday lending enterprise that federal prosecutors said exploited Four.Five million consumers through deceptive loan terms and illegal interest rates. Tucker’s conviction came after a five-week jury trial.

It will be Tucker’s 2nd stint in prison. He spent a year in prison related to a bank fraud scheme and was released in 1992.

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On Friday, Tucker was instantaneously taken into custody after his sentencing.

Tucker’s attorney and co-defendant, Tim Muir, was sentenced to seven years. Muir will report to prison at a later date. Restitution will be determined in February.

“For more than 15 years, Scott Tucker and Timothy Muir made billions of dollars exploiting fighting, everyday Americans through payday loans carrying interest rates as high as 1,000 percent,” said acting deputy U.S. Attorney for the Southern District of Fresh York Joan Loughnane in a written statement. “And to hide their criminal scheme, they attempted to claim their business was possessed and operated by Native American tribes. But now Tucker and Muir’s predatory business is closed and they have been sentenced to significant time in prison for their deceptive practices.”

Tucker, who began his foray into payday lending with a storefront operation in Kansas City in the late 1990s, became an early pioneer of online consumer lending.

Payday loans extend puny amounts of cash to consumers, often financially strapped and with poor credit histories, with the expectation that the loan is repaid within weeks. Payday lenders charge high interest rates to hedge for the possibility that some consumers can’t pay their debts back.

Tucker’s businesses, which operated under brand names like 500FastCash and Ameriloan, charged interest rates ranging from 400 percent to 700 percent, far beyond rates permitted by states that regulate payday lending.

Regulators and law enforcement authorities claimed, and a jury agreed, that Tucker established his businesses on American Indian tribal land as a way to sidestep state laws and charge illegal interest rates.

Moreover, Tucker’s businesses duped customers by automatically withdrawing interest payments from a consumer’s loan balance while not touching the principal amount so that the loan would renew on the consumer’s next payday.

The result was that a $500 loan could turn into almost $Two,000 in repayments.

Tucker, who asked for leniency in his sentencing, wrote in a letter to Castel that he employed as many as Ten,000 people and suggested a “fast, ordinary, and reliable service.”

“Although I witnessed myself as being an entrepreneur, a jobs provider, and a contributor to the American economy, I’ve learned that others view me through a different lens,” Tucker wrote. “I am very sorry that our leaders castigate me as a villain, or some type of predator.”

Federal prosecutors asked for a longer sentence, arguing that there was “every reason to believe he will again defraud others as soon as he has a chance to do so.”

Tucker is also on the hook for a $1.Three billion penalty arising from a civil case brought against him by the Federal Trade Commission. Tucker is appealing the FTC case, and has said he plans to appeal his criminal conviction.

Scott Tucker sentenced to 16 years, 8 months in prison following racketeering conviction for payday lending scheme, The Kansas City Starlet

Business

Payday lender Scott Tucker gets 16 years, 8 months in prison for $Two billion ripoff scheme

By Steve Vockrodt

January 05, 2018 03:34 PM

Scott Tucker, the Leawood businessman and professional race car driver who built a financial empire through an illegal payday loan enterprise, received a 16-year, 8-month prison sentence on Friday.

Kevin Castel, a judge for the U.S. District Court for the Southern District of Fresh York, almost split the difference inbetween requests by federal prosecutors for at least 20 years in prison and prayers by Tucker’s lawyers for no more than 15 years.

In October, Tucker, 55, was convicted of 14 criminal counts related to a $Two billion payday lending enterprise that federal prosecutors said exploited Four.Five million consumers through deceptive loan terms and illegal interest rates. Tucker’s conviction came after a five-week jury trial.

It will be Tucker’s 2nd stint in prison. He spent a year in prison related to a bank fraud scheme and was released in 1992.

Never miss a local story.

Sign up today for a free 30 day free trial of unlimited digital access.

On Friday, Tucker was instantly taken into custody after his sentencing.

Tucker’s attorney and co-defendant, Tim Muir, was sentenced to seven years. Muir will report to prison at a later date. Restitution will be determined in February.

“For more than 15 years, Scott Tucker and Timothy Muir made billions of dollars exploiting fighting, everyday Americans through payday loans carrying interest rates as high as 1,000 percent,” said acting deputy U.S. Attorney for the Southern District of Fresh York Joan Loughnane in a written statement. “And to hide their criminal scheme, they attempted to claim their business was wielded and operated by Native American tribes. But now Tucker and Muir’s predatory business is closed and they have been sentenced to significant time in prison for their deceptive practices.”

Tucker, who commenced his foray into payday lending with a storefront operation in Kansas City in the late 1990s, became an early pioneer of online consumer lending.

Payday loans extend petite amounts of cash to consumers, often financially strapped and with poor credit histories, with the expectation that the loan is repaid within weeks. Payday lenders charge high interest rates to hedge for the possibility that some consumers can’t pay their debts back.

Tucker’s businesses, which operated under brand names like 500FastCash and Ameriloan, charged interest rates ranging from 400 percent to 700 percent, far beyond rates permitted by states that regulate payday lending.

Regulators and law enforcement authorities claimed, and a jury agreed, that Tucker established his businesses on American Indian tribal land as a way to sidestep state laws and charge illegal interest rates.

Moreover, Tucker’s businesses duped customers by automatically withdrawing interest payments from a consumer’s loan balance while not touching the principal amount so that the loan would renew on the consumer’s next payday.

The result was that a $500 loan could turn into almost $Two,000 in repayments.

Tucker, who asked for leniency in his sentencing, wrote in a letter to Castel that he employed as many as Ten,000 people and suggested a “fast, elementary, and reliable service.”

“Although I spotted myself as being an entrepreneur, a jobs provider, and a contributor to the American economy, I’ve learned that others view me through a different lens,” Tucker wrote. “I am very sorry that our leaders castigate me as a villain, or some type of predator.”

Federal prosecutors asked for a longer sentence, arguing that there was “every reason to believe he will again defraud others as soon as he has a chance to do so.”

Tucker is also on the hook for a $1.Three billion penalty arising from a civil case brought against him by the Federal Trade Commission. Tucker is appealing the FTC case, and has said he plans to appeal his criminal conviction.

Related movie: Same Day Loans – Quick Cash, With Instant Processing


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