Description

Defendants will surrender at least $9 million in assets

The operators of a Chicago-area fake debt collection scheme have been banned from the debt collection business and from selling debt portfolios under settlements with the Federal Trade Commission and the Illinois Attorney General. The settlements also require them to surrender assets totaling at least $9 million, which will be returned to consumers.

The charges brought by the agencies in March 2016 were part of Operation Collection Protection, an ongoing federal-state-local crackdown on deceptive and abusive collection practices. A federal court had temporarily halted the scheme pending resolution of the case.

According to the FTC, the defendants used names such as Stark Law, Stark Recovery, and Capital Harris Miller to target people who had obtained or applied for payday or other short-term loans. Since 2015, according to the FTCs complaint, they pretended to be a law firm with authority to sue and obtain substantial judgments against delinquent consumers. They also allegedly provided bogus payday loan debt portfolios to other debt buyers, who then tried to collect the fake debts.

In addition to banning the defendants from the debt collection business and from selling debt portfolios, the settlement orders prohibit them from misrepresenting financial products and services, profiting from customers personal information collected as part of the challenged practices, and failing to dispose of such information properly.

Each order imposes a judgment of more than $47 million, which will be partially suspended once the defendants have surrendered identified assets valued at more than $9 million. Hirsh Mohindra will give up certain bank and investment accounts, his home and rental properties. His brother, Gaurav Mohindra, will surrender $85,000, a one-kilogram gold bar, certain bank accounts, and his interest in a condominium. Preetesh Patel will give up $41,000 and certain bank and investment accounts. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition.

The Commission vote approving the proposed stipulated orders was 2-0. The U.S. District Court for the Northern District of Illinois, Eastern Division, entered the orders on October 27, 2017.

NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works to promote competition and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

Comments
Order by: 
Per page:
 
  • There are no comments yet
   Comment Record a video comment
 
 
 
     
Related Feed Entries
The Securities and Exchange Commission today voted to extend by six months the deadline by which open-end funds must comply with certain elements of the Commission's liquidity risk management program rule. The new compliance date will provide funds additional time to complete implementation of the final rule's classification requirement, along with specified other elements that are tied to the classification requirement. Other provisions of the rule that provide important investor protection be…
17 minutes ago · From Securities Exchange Commission
Former Google engineer Tim Chevalier sued the company, claiming he was fired for sharing politically liberal posts on Google's internal message boards.Source: Wired - Emerging technologies News
An algorithm change apparently designed to keep fake news out is precisely what put a Parkland conspiracy video at the top of YouTube's Trending section.Source: Wired - Emerging technologies News
David Prejean, a former Sergeant in the K-9 Unit of the Iberia Parish Sheriffs Office (IPSO), pleaded guilty today to assaulting a pre-trial detainee at the Iberia Parish Jail (IPJ) by commanding his K-9 to bite the detainee, and by striking the detainee, all without justification, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Alexander C. Van Hook for the District for the Western District of Louisiana. Source: Justice News - Cyber-crime
2 hours ago · From Justice News - Cyber-crime
The Justice Department today charged William Patrick Syring, 60, from Arlington, Virginia, to four counts of threatening employees of the Arab American Institute (AAI) because of their race and national origin, three counts of threatening AAI employees because of their efforts to encourage Arab Americans to participate in political and civic life in the United States, and seven counts of transmitting threats to AAI employees in interstate commerce. A summons was issued for Syring to appear in fe…
2 hours ago · From Justice News - Cyber-crime
Rate
0 votes
Info
Michael Blair
Time is your GREATEST asset
01.11.2017 (01.11.2017)
9 Views
0 Subscribers
Recommend
Tags