Attorney General Andrew M. Cuomo today announced the filing of criminal charges against 12 employees of several Buffalo-area debt collection companies for posing as law enforcement officials and threatening to have consumers thrown in jail unless they immediately paid off the debts that they supposedly owed.

All of the individuals charged today worked for one or more of the debt collection companies owned by Buffalo resident Tobias Boyland, which were shut down in June under an order obtained by Cuomo’s office. Since announcing that case during the summer, the Attorney General’s Office has compiled more than 1,000 complaints against Boyland and his companies. Today’s charges and arrests are a part of the Attorney General’s ongoing probe into unlawful debt collection practices.

“The tactics allegedly used here are some of the worst of the worst in the debt collection business,” said Attorney General Cuomo. “The defendants’ alleged lies, deceit and intimidation caused many innocent people to pay money they didn’t owe just to stop the terrifying calls. My office will continue to seek out and punish companies that prey on consumers and violate clearly written laws regarding debt collection.”

According to the felony complaints, the defendants stole thousands of dollars from consumers from across the country by using the threat of criminal charges and incarceration to collect debts that often did not exist, had passed the statute of limitations or had been previously discharged through bankruptcy. The collectors also regularly inflated the amount owed on an actual debt and would falsely tell consumers that they were being sued in civil court.

The complaints allege that the collectors used false law enforcement identities to coerce and cajole terrified consumers into agreeing to make the payments. Frightened at the prospect of arrest and humiliation, consumers authorized withdrawals from their checking accounts, wired money, or sent money orders to the collectors. Consumers were intentionally given misleading names, addresses and telephone numbers that led them to believe the businesses were located far from the Buffalo area.

The 12 individuals were charged in Town of Cheektowaga Court with multiple counts of grand larceny in the 4th degree (class E felony), which carries a maximum sentence of 4 years in prison for each count. The following individuals were charged today:

• Tina Almond, 30, of Marsdale Road, Cheektowaga
• Marcus Brown, 32, of Hoyt Street, Buffalo
• Andrew Brzyski, 25, of Mary Lou Lane, Depew
• Boris Burch, 49, of Kenmore Avenue, Buffalo
• Rhonda DeSousa, 44, of Thornton Avenue, Buffalo
• Jeremy Hapka, 22, of E. Rouen Drive, Buffalo
• Kenneth MacGregor, 33, of Hodge Avenue, Buffalo
• Danielle Miller, 33, of Highgate Avenue, Buffalo
• Tracey Pritchett, 39, of Humboldt Parkway, Buffalo
• Jammiea Simpson, 35, of Elmer Avenue, Buffalo
• Bennie Davis, 47, Howard Street, Buffalo
• Meghan Williams, 30, of Hussey Avenue, Buffalo

According to the criminal charges and a civil lawsuit filed by Cuomo’s office in June, Boyland and three other individuals – Kayla Pritchett, Dellian Sharp and Dorian Wills – operated numerous collection companies in at least four locations in Western New York. The debt collection agencies operated under several names across the Buffalo area, including: Central Resource Management, Final Claims Asset Locators, Final Control Asset Locators, Interchange Payment Solutions, Next Step Services, Portfolio Asset Assurance, Silverbay Services, and Teleport. Boyland was recently indicted by an Erie County Grand Jury on weapon charges.

The federal Fair Debt Collection Practices Act and the New York State debt collection and consumer protection laws prohibit the following conduct: posing as an attorney, threatening lawsuits or other legal action which cannot be taken, saying a consumer committed a crime or will be arrested, and talking with third parties except to get location information. The law further requires collection agencies to send a written notice within five days of initial communication with the consumer explaining how he or she can dispute the debt. If properly disputed, the collection agency must stop all collection attempts and send verification.

The arrests and charges are part of an ongoing investigation by Attorney General Cuomo into unlawful debt collection practices. In recent months, Cuomo has shut down multiple debt collection companies and required others to reform their deceptive practices. Lawsuits against several other collection companies are pending.

Cuomo urges consumers to visit www.NYDebtHelp.com to learn their rights. The site allows victims of debt collection and debt settlement companies quick access to the Attorney Generals office to file complaints, and outlines the stages of the Attorney General’s investigation.

The criminal case is handled by Assistant Attorney General Paul F. McCarthy under the supervision of Deputy Bureau Chief of the Criminal Prosecutions Bureau Richard Ernst and Executive Deputy Attorney General for Criminal Justice Robin L. Baker. The investigation was handled by Investigators Michael G. McCartney, Paul R. Scherf, Jr. and Sandra Migaj under the supervision of Deputy Chief Investigator James Domres. Staff from the Attorney General’s Buffalo Regional Office is assisting in the case. The Attorney General thanked the Erie County Sheriff’s Office for their help during the execution of the court ordered search warrants and the arrests of the defendants.

The charges against the defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

@GetOutOfDebtGuy

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Attorney General Andrew M. Cuomo announced that his office has shut down a New York collection operation that consisted of at least nine debt collection companies across Western New York, run by Buffalo resident Tobias Boyland. This is the latest action in Attorney General Cuomo’s ongoing investigation of unlawful debt collection practices.

According to hundreds of consumer complaints filed with law enforcement agencies across the country, Boyland’s employees violated state and federal law by routinely posing as law enforcement officials, threatening to arrest consumers and throw them in jail unless they made arrangements to pay the company immediately. Under the terms of the court order obtained today by Cuomo’s office in Buffalo Supreme Court, Boyland’s operation will shut down all of its companies in the Buffalo area. Attorney General Cuomo also announced that his Office executed search warrants on four of the operations known locations and on Boyland’s residence this morning. When investigators from the Attorney General’s Office arrived at the residence, they found a loaded, .380 semi-automatic pistol on Boyland’s person. Boyland was taken into custody by the Erie County Sheriff and the Office of the Erie County District Attorney will handle the resulting gun-possession case.

“Plain and simple, this company was run by people who lied, bullied and preyed on vulnerable Americans struggling to resolve their financial situation,” said Attorney General Andrew Cuomo. “Pretending to be a police officer, threatening to throw consumers in jail – these practices are as despicable as they are illegal. My Office will continue to relentlessly root out these kinds of tactics and shut down unscrupulous companies that violate the rights of consumers across New York and the entire nation.”

According to the lawsuit filed by the Attorney Generals Office, Boyland, a convicted felon, and three other individuals ran numerous debt collecting companies that operated out of at least four locations in Western New York. The other three individuals named in the lawsuit are Kayla Pritchett, Dellian Sharp and Dorian Wills. Both Sharp and Will also have criminal records.

These debt collection agencies operated under several names across the Buffalo area, including: Central Resource Management, Final Claims Asset Locators, Final Control Asset Locators, Interchange Payment Solutions, Next Step Services, Portfolio Asset Assurance, Silverbay Services, and Teleport. Their collectors routinely made scripted telephone calls designed to intimidate consumers into paying their debts. The debt collectors pretended to be law enforcement officers and threatened consumers with arrest and incarceration if they failed to pay. These employees also falsely informed consumers that they were being sued in civil court.

Attorney General Cuomo’s investigation revealed that collectors regularly demanded payment for non-existent debts, demanded payments for debts that had already passed the statute of limitations, or substantially inflated the amount owed on an actual debt. Using their false law enforcement identities, collectors coerced and cajoled terrified consumers into agreeing to make payments. Frightened at the prospect of arrest and humiliation, consumers authorized withdrawals from their checking accounts, sent Western Union moneygrams and/or money orders out of fear. Consumers were intentionally given misleading names, addresses and telephone numbers that led them to believe the businesses were located far from the Buffalo area.

Peter Dellinger of the Empire Justice Center said, The Empire Justice Center stands firmly behind Attorney General Cuomo’s efforts to stamp out fraudulent and abusive debt collectors across the country. In these times of financial hardship, dishonest debt collection companies are attempting to take advantage of honest, hard-working consumers. We thank Attorney General Andrew Cuomo for his leadership and for putting a stop to these merchants of financial misery.

The federal Fair Debt Collection Practices Act, the New York State debt collection and consumer protection laws prohibit the following conduct: posing as an attorney, threatening lawsuits or other legal action which cannot be taken, saying a consumer committed a crime or will be arrested and talking with third parties except to get location information. The law further requires collection agencies to send a written notice within five days of initial communication with the consumer explaining how he or she can dispute the debt. If properly disputed, the collection agency must stop all collection attempts and send verification.

Today’s action is part of a larger investigation by Attorney General Cuomo into unlawful debt collection practices. Earlier this month, Cuomo announced settlements with three Western New York-based debt collection companies to reform their deceptive methods. Attorney General Cuomo also subpoenaed nearly twenty companies and law firms operating as debt collectors throughout the state. His office shut down two collectors for threatening and intimidating consumers into paying debts that they did not owe. In early May, Attorney General Cuomo announced a lawsuit against two debt settlement companies for fraudulent business practices and false advertising by selling misleading debt settlement plans that very rarely deliver the promised benefits to consumers dealing with debt.

@GetOutOfDebtGuy

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Read the full article at GetOutOfDebt.org, click here: New York State Shuts Down Debt Collection Companies That Used Illegal Scare Tactics