Scamsters in USD7.1 million payday loan scheme agree to settle with FTC

1 December 2016

A data broker who according to the criminal case defrauded internet users out of 7.1 million US dollars is shut down by the Federal Trade Commission. The regulator puts accusations of collecting personal information from consumers believing they were filing an application for a payday loan. That sensitive data was afterwards sold to dishonest businesses to access bank accounts and credit cards without knowledge and authorization from the victims.

Last year in August the FTC brought an action with respect to Jason A. Kotzker together with its codefendants for allegedly providing the sensitive data to unauthorized persons instead of legal payday lenders thus assisting fraudsters to conceal their crime from the banks. According to the official statement from FTC the order puts forth an injunction on Kotzker’s providing the sensitive information of consumers and selling it to unauthorized businesses under the guise of proposing some financial services to consumers.

While the regulator’s judgment imposes over 7.1 million in charges, the payment will be partially suspended after entering the sum of 45 thousand US dollars because that amount is the only asset of the criminal.

According to the case report the perpetuators were selling applications to Ideal Financial for virtually 50 cents for a piece, meantime the usual rate for it is not less than 100 US dollars among the payday lenders. The FTC accused the criminals for deliberately arranging this scheme involving the reading of the accounts of consumers.

The case participants include Sequoia One LLC, Gen X Marketing Group LLC, Jason A. Kotzker, Theresa D. Bartholomew, John E. Bartholomew, Jr. and Paul T. McDonnell. Among them Paul T. McDonnell, Theresa D. Bartholomew and John E. Bartholomew, Jr. provided their consent to settle in the case.

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