Payday Lender Subpoenaed in Criminal Probe

Monday, May 5, 2014

A U.S. grand jury has subpoenaed a company that the Federal Trade Commission has said is at the center of a deceptive payday lending scheme. The grand jury is looking at possible violations of statutes covering wire fraud, money laundering and racketeering. The FTC lawsuit accuses the companies and Tucker of deceptive practices, including failing to disclose to borrowers the true costs of loans and falsely threatening consumers with arrest or prosecutions if they failed to pay. In a complaint filed in April 2012, the FTC said AMG and its allegedly related companies operate online payday lenders, including 500FastCash, AmeriLoan and USFastCash.