U.S. federal authorities announced on Tuesday that an anti-cheat "desperate and vulnerable" false promises in order to consolidate their debt by the 2008 financial crisis injury predatory enterprise.
The U.S. Attorney Puri teba Lara at a news conference, the alleged owner and three employees open the door of the New York-based company in 2009, the country has more than 1,200 customers cheated. Their mail and wire fraud, conspiracy to commit mail and wire fraud charges against him be prosecuted.
He said the mission of clearing institution promised to help the economic collapse by a $ 49 monthly fee, but instead often make things worse for its customers a cost of $ 220 million it did not help, and take more than $ 6.6 million of expense in all hurt.
"The true mission of the mission turned out to be fraud and deception," he said. "More than a thousand consumers, debt relief dream into deeper debt trouble turned into a nightmare."
Balala said the prosecution cases referred to lead the Consumer Financial Protection Bureau. The agency is created under the 2010 Finance Act referred to as the "Dodd - Frank Act. The agency responsible for helping to ensure that borrowers better understand and easier to repay the loan, to reduce the risk of a credit bubble.
Bureau Director Richard Cordray said a similar prosecution in the future protection of the 30 million Americans who debt collection.
Balala promised that the prosecution would not be the last time for those who take advantage of economic difficulties.
"Our concern is that the predatory practices prevalent in the industry," he said.
Phil Bartlett, head of the U.S. Postal Inspector gorgeous life people were arrested in the case, the purchase of housing, luxury cars, which he described as "desperate and vulnerable victims of the money received operating Brooklyn nightclub."
Jeffrey Richman, the owner of the company, Michael Levitis lawyer said, in cooperation with the federal authorities, because his client is being approached in February.
He said victims of the $ 1 million bail, was released Levitis "rogue employee like a cowboy in a certain sense."
"He'll wind ridiculous rogue employees commitment, and some even started his own debt settlement companies," Richman said. "
 
 



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