WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced a stipulated order Nov. 30 against Jason A. Kotzker that resolves charges that he and his co-defendants received personal information from people who thought they were applying for payday loans online and sold it to a scam that tapped consumers’ bank accounts and credit cards without consent.
According to the FTC, Kotzker took the information received online and, instead of passing it along to legitimate payday lenders, sold it to companies like Ideal Financial Solutions Inc. The financial solutions company then allegedly raided consumer accounts for $7.1 million.
The order against Kotzker bars him from selling or disclosing personal information of consumers. Additionally, he cannot misrepresent financial products or services. A $7.1 million judgment has been suspended upon payment of $45,000, which represents virtually all of Kotzker's assets.
The FTC voted 3-0 to approve the proposed stipulated final order against Kotzker. The agency entered the order in the U.S. District Court for the District of Nevada on Nov. 3. The order comes after stipulated orders against other defendants in the case that were entered Aug. 13. Those defendants are Paul T. McDonnell, Theresa D. Bartholomew and her son, John E. Bartholomew Jr.