This article will discuss the fraud made by a payday loan race car driver owned. This case happened in 2012 and has just been resolved in September 2018- six years after the fraud took place. You will be given information regarding the fraud and the owner of the company which was the mastermind behind this. You need to be careful that not all payday loan services are honest and you need to be careful in getting a loan. Well, let us head to the body of this article, shall we?
First, let us take a look at the fraud which is the main focus of this article. In 2012, a company which was named AMG services was accused of tricking its clients when they were taking loans. When the borrowers wished to get a loan, they would be charged with the loan amount plus a one-time finance fee- which was a normal thing. However, things went bizarre when AMG Services suddenly made a shady move, which was making multiple withdrawals from the bank accounts of its costumers. The costumers of this payday loan race car driver was then forced to pay an amount of money which exceeded the amount which they originally agreed to pay- the amount which each of the costumers needed to pay is still a mystery, but it is estimated that it is far beyond the original loan that they were agreed upon.
The Federal Trade Commission (FTC) was working with the US Department of Justice in order to solve this case and to provide a satisfying resolution for the costumers of the company who had become victims to this fraud. In 2017, these organizations, along with the US Attorney’s Office for the Southern District of New York, managed to obtain a criminal conviction against the founder of AMG Services, Scott Tucker, as well as his attorney, Timothy Muir. Then, on September 27, 2018, FTC and Department of Justice mailed 1,179,803 checks for the former costumers of the payday loan company which will be used by the costumers to refund the money they have lost to the fraud. The checks are estimated to be more than USD 505 million is total- what a huge number!
Now that we have figured out the fraud made the company, it is time to take a look at the founder of the company himself. AMG Services was a company which specialized at payday loans online business service and it was founded in 2001 by Scott Tucker. This Missouri man was actually running his business in an honest way for a period of time. Aside from his career as a CEO of his company, he also started racing in 2006 in a motorsport championship named Ferrari Challenge and he raced in this until 2009, when he managed to win the championship in that year. He returned to the championship in 2014. He also completed in American Le Mans Series.
Tucker charged illegal interest rates to some of his costumers. These rates were found to be in violation of the Racketeer Influenced And Corrupt Organizations Act (RICO) and the Truth in Lending Act (TILA) statutes. This ended his career as a CEO of the payday loan race car driver.
Read also, The Rise and Down of Scott Tucker