Federal Trade Commission Secures $ 4 Million Default Judgment Against Joel Tucker, Brother Of Scott Tucker, For Selling Fake Payday Loan Portfolios

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Joel tucker

Johnson County Sheriff’s Office

A federal judge in Kansas City, Kansas, granted the Federal Trade Commission a $ 4 million judgment against Joel Tucker, a Johnson County businessman who was accused of creating and selling fake wallets of consumer debt.

The FTC accused Tucker in December 2016 selling lists of allegedly unpaid payday loan balances to debt collectors. The FTC alleged that those lists contained names, addresses, Social Security numbers and phone numbers of people who did not actually owe the debts attributed to them.

The debt collectors who bought these supposedly bogus wallets then pressured people to pay off debts they didn’t have, according to the FTC. The FTC said some of those listed in the fake debt portfolios ended up paying debt collectors to stop phone calls.

SQ Capital, JT Holdings and HPD LLC, all companies which the FTC said were controlled by Tucker were also named as defendants in this case.

Tucker did not respond to the Star when asked about the FTC’s allegations and the judgment against him.

The FTC said that Tucker, in an effort to bolster the credibility of the fake wallets, told some debt collectors that consumer debts came from a 500FastCash online payday loan brand.

500FastCash is a trademark owned by Red Cedar Services Inc., an online consumer loan company affiliated with payday loan mogul Leawood Scott Tucker.

Scott Tucker, who was also a professional racing driver, was fined $ 1.3 billion last year by a federal judge to the FTC for running a company that provided illegal payday loans; Scott Tucker is appealing this fine.

Scott Tucker is also currently on trial in New York on criminal racketeering charges arising from his payday lending activities. The trial, in which his lawyer Timothy Muir is also cited as an accused, is in its third week.

After the FTC filed its case in December against Joel Tucker, a federal judge in January approved a temporary restraining order against his continued debt sales. Tucker was ordered to appear in court and provide an account of his debt sales.

Tucker appeared three times without a lawyer before Kansas Federal Judge Julie Robinson, and was later found in contempt of court for failing to provide requested information.

Tucker eventually handed over some of the documents Robinson and the FTC were looking for, but never filed a formal response to the allegations against him. In civil court cases, defendants are required to file an initial response to the allegations, often within a month or two.

Defendants who do not respond to the allegations run the risk of a court entering a default judgment against them, which means that the judge essentially considers the allegations to be true and awards the plaintiff the damages sought.

This is what happened to Tucker on March 31st. He eventually hired lawyers to try to overturn the default judgment, but earlier this month Robinson found that Tucker’s late response was not enough.

Tucker now owes the FTC $ 4 million and is generally prohibited from buying and selling consumer information.

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