WASHINGTON (Legal Newsline) —
The Federal Trade Commission (FTC) announced Jan. 9 that it has charged Joel Jerome
Tucker, SQ Capital LLC, JT Holdings Inc. and HPD LLC with selling portfolios of
fake payday loan debts.
According to the FTC, the
defendants took private information from consumers – including Social Security
and bank account numbers – and sold them to debt collectors.
Tucker and his
companies allegedly received the information in the form of fake loans
supposedly made by a phony lender, “Castle Peak,” or by an online loan provider known as “500FastCash.”
The debt collection
agencies could, according to the FTC, use the information to persuade people
that the debts were real and needed to be paid off.
The FTC charges that the
defendants listed fake loans that lenders never made, and falsely said that
purported borrowers had failed to repay debts, when those consumers never
actually owed the debts. Alleged conduct of this nature violates the FTC Act.
The FTC seeks a permanent injunction barring the defendants from continuing the
The FTC voted 3-0 to
authorize the staff to file the complaint, which was filed in the U.S.
District Court for the District of Kansas.