February 10, 2016

Charges Allege Payday Loan Operators Exploited Millions

Criminal charges were unsealed today in New York against principals at two large payday loan operations that together allegedly exploited more than five million people.

Scott Tucker, 53, of Leawood, Kansas, and Timothy Muir 44, of Overland Park, Kansas, allegedly targeted and exploited millions by charging illegally high interest rates—as much as 700 percent—and sought to evade liability by claiming the $2 billion business was actually owned and operated by Native American tribes. According to the indictment, Tucker’s business operated from at least 1997 until 2013. A professional race-car driver, Tucker is alleged to have spent over $100 million from business acounts on lavish personal expenses, including race cars, the expenses of a professional auto racing team, a luxury home in Colorado, and jewelry. Muir was employed as an attorney for Tucker’s company since 2006.
Press release

In a separate indictment, Richard Moseley Sr., 68, of Kansas City, Missouri, is alleged to have systematically exploited more than 620,000 financially struggling people, many of whom were having trouble paying for basic living expenses. He extended loans at illegally high interest rates of more than 700 percent using deceptive and misleading communications and contracts, according to the indictment.

“Despite their best efforts, innocent people throughout the country were deprived of the opportunity to regain their financial well-being as a result of this conspiracy,” said New York FBI Assistant Director in Charge Diego Rodriguez. “Today, we issue a stop payment on Moseley’s fraudulent scheme.”
Press release