In 2015, the New York Attorney General’s office and the FTC sued the defendants for their abusive and egregious debt collection schemes. One of their illegal practices is threatening consumers with felony charges and jail time of 90 to 120 days.
New York, FTC have “zero tolerance” for fraudulent debt collection schemes
In a statement, Attorney General Barbara Underwood, said, “We have zero tolerance for debt collectors who use illegal and unconscionable tactics to coerce payment, such as threatening jail time.”
Underwood reiterated their commitment to “stopping fraudulent schemes and preventing scam artist from taking advantage of consumers.”
In June, Underwood and the FTC filed a joint lawsuit to shutdown two other phantom debt chain companies and their owners. The defendants were Hylan Management LLC and Andrew Shaevel and Worldwide Processing Group, LLC and Frank Ungaro Jr.
They accused the defendants of selling false debt portfolios and harassing consumers to collect fake debt.
