Tag Archive for scheme

Bogus credit repair scheme operators settle FTC charges

Bogus credit repair scheme operators settle FTC charges
News from ConsumerAffairs:

The operators of a bogus credit repair scheme that allegedly tricked Spanish-speaking consumers into paying thousands of dollars each to supposedly improve their credit have settled the charges with the Federal Trade Commission (FTC).

A federal court complaint filed in March claims the defendants did business using the name FTC Credit Solutions, misleading consumers not only about the nature of the alleged credit repair services they offered, but also claiming an affiliation with the FTC that did not exist.

“These defendants were shameless. They scammed consumers who were in need of financial help and used the good name of the Federal Trade Commission to do so,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection.

According to the FTC, the defendants — First Time Credit Solution, Corp., Guillermo Leyes, Jimena Perez, Fermin Campos, and Maria Bernal — violated the FTC Act by claiming to be affiliated with or licensed by the Federal Trade Commission. They are also accused of falsely promising they could remove negative information from consumers’ credit reports and guaranteeing consumers a credit score of 700 or above within…………… continues on ConsumerAffairs

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Miami-Dade officer pleads guilty to fraud for role in credit-repair ring
News from Miami Herald:

Moonlighting on the job, a Miami-Dade County cop wrote 159 police reports claiming people with bad credit histories were “victims” of identity theft, according to court records.

The reality: Veteran Miami-Dade police officer George Price fabricated the reports and sold them so they could be used to remove blemishes from the purported victims’ credit histories.

Price, 42, pleaded guilty to a conspiracy charge Friday for his supporting role in an alleged credit-repair ring. Price, who joined the force in 1999, must resign by next week.

He faces up to 20 years in prison on his fraud conviction, but is expected to receive a significantly shorter sentence because he pleaded guilty and has agreed to assist the FBI and U.S. attorney’s office in their investigation, according to a plea deal signed by Price, his defense attorney, Marshall Dore Louis, and the prosecutor, Michael Davis.

In the end, Price didn’t make much for exploiting his badge: $ 7,000. He must turn over to the feds the bribery payments he received in 2010-11.

Price was not operating alone.

Through an intermediary, he was working for Vanessa and Mario Perez, a Miami-Dade couple who already pleaded guilty. They made more than $ 322,000 by clearing up the lousy credit reports of people with bad bill-paying histories, according to court re…………… continues on Miami Herald

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Clinton Township man gets 2-1/2 years in illegal scheme to improve credit scores

Clinton Township man gets 2-1/2 years in illegal scheme to improve credit scores
News from The Macomb Daily:

A Clinton Township man was ordered to serve 2-1/2 years to 20 years for his behavior as a Detroit police officer in a bribery and forgery scheme to help improve his and others� credit scores.

Tamboura K. Jackson, 41, was sentenced Friday by Judge Mark Slavens in Wayne County Circuit Court in Detroit for convictions for operating a criminal enterprise — aka racketeering — public officer accepting bribes and forgery following a December jury trial, state Attorney General Bill Schuette said in a press release.

Co-defendant Lisa Curtis, 35, of Macomb Township, testified against Jackson. She pleaded guilty to bribery of a public officer and was sentenced Oct. 22 to two years probation.

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The case originated from an investigation by the FBI-led Detroit Area Public Corruption Task Force in collaboration with Schuette�s Public Integrity Unit.

�Public officers who abuse the public�s trust for personal gain greatly undermine the integrity of law enforcement,� Schuette said in the written statement.

Investigators say that beginning in 2009, Jackson took cash bribes in exchange for fraudulent police reports in the enterprise concocted with Curtis.

He told dozens of southeast Michigan clients she could improve their credit score through her Waterford-based company, Bright Star Co…………… continues on The Macomb Daily

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FTC Seeks to Shut Down Phony Debt Relief and Credit Repair Scheme

FTC Seeks to Shut Down Phony Debt Relief and Credit Repair Scheme
News from Kansas City infoZine:

 

Washington DC – infoZine – The FTC’s complaint targets the operators of two websites that were allegedly full of misrepresentations about the fake program, which they called the “Bill Payment Government Assistance Program.” The sites claimed that the program was governed by the Recovery Accountability and Transparency Board, a government agency formed to oversee projects funded by the American Recovery and Reinvestment Act of 2009.

Beyond claiming affiliations with and/or endorsements from the Recovery Board, the Department of Treasury, and other federal agencies, the complaint alleges that YouTube videos created by the scam’s operators included a purported personal endorsement from the President with an audio recording of him saying, “I approve this message.”

The complaint alleges that the defendants purported to offer up to $ 75,000 in debt relief to consumers, along with promises that consumers’ credit scores would “increase within 30 days.” Consumers contacting the scammers, according to the complaint, were told that in exchange for an advance “service charge” of $ 900 to $ 1,100, the defendants would pay off the consumers’ debts.

According to the complaint, scammers would ask consumers for details of their outstanding debt, including account num…………… continues on Kansas City infoZine

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http://www.LegacyLegal.com If you have decided that you don’t want to tackle your credit repair issues on your own and that hiring a third-party credit repai…

FTC Asks Court to Shut Down Phony Debt Relief and Credit Repair Scheme

FTC Asks Court to Shut Down Phony Debt Relief and Credit Repair Scheme
News from ACA International:

The Federal Trade Commission has asked a federal court to shut down a scam that targeted financially distressed Americans  through a phony debt relief and credit repair program.

The FTC’s complaint targets the operators of two websites that were allegedly full of misrepresentations about the fake program, which they called the “Bill Payment Government Assistance Program.” The sites claimed that the program was governed by the Recovery Accountability and Transparency Board, a government agency formed to oversee projects funded by the American Recovery and Reinvestment Act of 2009.

The false claims include that the program was provided and funded by the federal government and endorsed by President Barack Obama.
Beyond claiming affiliations with and/or endorsements from the Recovery Board, the U.S. Department of Treasury, and other federal agencies, the complaint alleges that YouTube videos created by the scam’s operators included a purported personal endorsement from the president with an audio recording of him saying, “I approve this message.”

The defendants allegedly purported to offer up to $ 75,000 in debt relief to consumers, along…………… continues on ACA International

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FTC Seeks Shutdown of Costly and Bogus Debt Relief, Credit Repair Scheme
News from eCreditDaily.com:

The two websites made some incredible claims about reducing consumers’ debt load and fixing their credit reports, and it was all supposedly backed by President Obama.

In reality, it’s a scam, the Federal Trade Commission told a federal court as the agency seeks to shut down another scheme that targeted financially distressed Americans.

The sites pitched a phony debt relief and credit repair program. Operators also falsely claimed the program was provided and funded by the federal government and endorsed by President Obama. The operators were not identified, but the scheme did business as American Bill Pay Organization and American Benefits Foundation, through the websites www.americanbillpay.org and www.benefitsfoundation.org, states the FTC’s complaint.

The FTC’s complaint targets the unnamed operators of two websites. They labeled the fake program the “Bill Payment Government Assistance Program.” The sites claimed that the program was governed by the Recovery Accountability and…………… continues on eCreditDaily.com

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http://www.LegacyLegal.com Repair Credit? Repair Credit Scores? Credit bureaus don’t like to repair credit or to repair credit scores. They make money by sel…

Mastermind Behind Credit Repair Scheme Sentenced

Mastermind Behind Credit Repair Scheme Sentenced
News from NBC 7 San Diego:

The mastermind behind a credit report scheme that defrauded more than 100 victims has been sentenced to nearly three years in federal prison. 

Eric Phillips, a former employee of Georggin Law, received his sentence in federal court Monday morning for his role at the law firm. Phillips was also ordered to pay back 120 former clients who filed complaints with the FBI.

READ: Consumers Warn About San Diego Company Georggin Law

In an exclusive interview Phillips told NBC 7, “I’m apologizing for the service that wasn’t delivered to the clients. And for whatever hurt may have occurred as a result of not getting the service.”

Phillips helped create the Georggin Law Firm in 2010 with Ernest Georggin. A State Bar Investigation found Georggin collected a salary, but Phillips managed the firm.

Last October, Phillips pleaded guilty to one count of mail fraud and admitted to misusing the Georggin Law Firm to defraud clients. According the State Bar of California,

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Judge Shuts Credit Repair Scheme at FTC’s Request

Judge Shuts Credit Repair Scheme at FTC’s Request
News from eCreditDaily.com:

At the request of the Federal Trade Commission, a U.S. district judge temporarily shut down a Florida-based operation that allegedly continued to pitch bogus credit-repair services nationwide.

The operation continued to make its pitch of fixing anyone’s credit for $ 250, despite a 2010 court order requiring it to stop doing so, the FTC said.

The new court order will remain in place while the FTC seeks a contempt ruling against the defendants for violating the original order.

In 2008, the FTC filed a complaint against Latrese and Kevin Hargrave and the firms they control, alleging that they advertised on the Internet and radio stations and charged $ 250 to $ 270 per person and $ 450 per couple for purported credit repair services, requiring half or all of the charge to be paid in advance.

In January 2010, the court ruled in favor of the FTC and barred the defendants from making or using untrue or misleading statements to get consumers to buy their credit repair services. It also barred them from charging or receiving an up-front payment for such services.

In a radio script, the Hargraves stated: “They specialize in erasing bad credit! Hargrave & Associates covers all three major credit bureaus; slow pays, charge-offs, repossessions can be erased for two-h…………… continues on eCreditDaily.com

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Fresno business owners indicted for debt relief and credit repair fraud
News from Central Valley Business Times:

Fresno business owners indicted for debt relief and credit repair fraud

FRESNO
June 7, 2012 11:26am

•  Accused of swindling hundreds of homeowners and others

•  ‘Fraudsters who prey on distressed homeowners … will be targeted for prosecution’

A federal grand jury in Fresno has returned a 46-count indictment charging Sharanjit Kaur, 36, and Baljit Singh, 47, both of Fresno, with conspiracy, mail and wire fraud, and international money laundering, says U.S. Attorney Benjamin Wagner.

The indictment alleges that between July 2010 and June 2011, Ms. Kaur and Mr. Singh owned and operated several companies based in Fresno for the sole purpose of defrauding hundreds of customers throughout the United States.

The pair touted to potential customers that their businesses, Consumer Financial Services, Consumer Credit Repair, and Client Financial Services, could provide debt consolidation services, the grand jury says.

The government says the two lied when they promised that they could renegotiate debts with creditors and mortgage lenders, obtain low-interest loans for customers, assist in avoiding lawsuits, lower car payments, replace high-interest credit cards with low-interest ones, and correct errors in credit reports.

<…………… continues on Central Valley Business Times

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Leader of fraudulent credit repair scheme pleads guilty

Leader of fraudulent credit repair scheme pleads guilty
News from EmpireStateNews.net:

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7 times when it’s OK to check someone’s credit report – CreditCards.com
News from 7 times when it’s OK to check someone’s credit report – CreditCards.com:

7 times when it’s OK to check someone’s credit report

By Erica Sandberg

Can you pull someone else’s credit report?

Absolutely, and there are a number of circumstances when you ought to. Consumer credit reports and credit scores can provide valuable insight into an individual’s finances. With them, you can reduce risk, save money and even help someone offset trouble.

Permission and purpose to pull
Before you even attempt to review another’s credit file, however, you should know the rules. In most cases, you’ll need permission from the other person before pulling personal data. “The Fair Credit Reporting Act (FCRA) allows an individual to access another’s credit report if they have a credit authorization,” says Jeremy Maher, founder of the credit education program Credit Repair Doctor. You’ll also need a “permissible purpose.” In general, this means a legitimate business reason, such as offering someone a loan, employment or a home. Other…………… continues on 7 times when it’s OK to check someone’s credit report – CreditCards.com

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