CFPB's 1st Criminal Referral Targets $2M Debt Relief Scam

Law360, New York (May 7, 2013, 1:30 PM EDT) -- Federal prosecutors on Tuesday charged a New York debt settlement firm with defrauding over 1,200 customers hobbled by credit card debt in a $2.2 million scheme that also marked the first criminal referral from the Consumer Financial Protection Bureau.

According to a criminal indictment unsealed by the office of U.S. Attorney for the Southern District of New York Preet Bharara, Mission Settlement Agency, its manager Michael Levitis and three other employees duped customers into using the firm by lying about fees, and in over 1,200 cases...
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