Joseph Ciffa, a resident of Tonawanda, New York, has been sentenced to 37 months in prison for his involvement in a fraudulent debt collection scheme. The announcement was made by U.S. Attorney Trini E. Ross and the sentence was handed down by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Franz M. Wright explained that Ciffa had been part of the debt collection industry since at least 2013 and began running an illegitimate operation from early 2015. This operation spanned multiple locations including Niagara Falls, Kenmore, and Grand Island, where it used deceptive practices to collect debts unlawfully.
The scheme involved making threatening phone calls to debtors, often referencing criminal statutes or filing criminal complaints to coerce payments. Employees impersonated attorneys during these calls to further intimidate debtors into paying.
Between January 2015 and December 2016, Ciffa's operation collected over $3 million from victims. He also filed a false tax return for 2015, underreporting his income to evade approximately $15,651 in taxes. Additionally, he committed Medicaid fraud by under-reporting his income on an application to the Erie County Department of Social Services.
The investigation leading to Ciffa's sentencing was conducted by Homeland Security Investigations under Special-Agent-in-Charge Erin Keegan; the IRS Criminal Investigation Division led by Special Agent-in-Charge Thomas Fattorusso; the United States Postal Service Inspection Service with Acting Inspector-in-Charge Ketty Larco-Ward; and the New York State Office of Inspector General headed by Inspector General Lucy Lang.