I just posted an article about Edwin Jacquet getting sentenced to 63 months in jail for his credit repair operation. This case is interesting in that it seems to include many of the same activities that others engage in to “repair” credit.
Let’s take a closer look at the complaint filed against Edwin Jacquet and his co-horts and see what the Department of Justice took exception with.
In 2011, Edwin Jacquet, Edwin Mansour, and Denise Hudson were criminally charged as a result of their credit repair operation. The government charged them with conspiracy to commit bank fraud and conspiracy to cause damage to a protected computer.
Using a series of fraudulent seasoned accounts or tradelines and removing negative but accurate information about consumers from credit reports, the scam enterprise ran into trouble. The people charged in this enterprise used their access to E-OSCAR (Online Solution for Complete and Accurate Reporting) to manipulate credit reports using an Automated Universal Data Form (“AUD”).
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Jacquet, aka Carlton Exile, and Donald Banks, and others engaged in a for-profit enterprise to intentionally and fraudulently improve credit history and credit scores.
The consumers that paid for these services then used the repaired credit reports to apply for credit and receive loans from a number of lenders and banks.
The flawed credit repair business found new customers by marketing their services through brokers and affiliates that must have believed the credit repair services offered were legitimate, when they were not. These affiliates were paid a fee for each new customer they enrolled in the program to falsely and fraudulently improve their credit.
The conspirators in this credit repair scheme were charged with federal bank fraud since the consumers that used the fraudulent credit report then went and applied for credit which defrauded banks that were insured by FDIC.
…willfully and knowingly would and did execute and attempt to execute a scheme and artifice to defraud a financial institution, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain moneys, funds, credits, assets, securities, and other property owned by , and under the custody and control of , such financial institution, by means of false and fraudulent pretenses, representations, and promises, in violation of Title 18, United States Code, Section 1344. – Source
As a result of these activities, Edwin Jacquet was sentenced to 63 months in federal prison. The others involved are awaiting sentencing.
This is a good case for those to review before they either think about engaging in such credit repair activities or selling such services.