DOJ Targets Payday Lender Using RICO
On June 22, 2015, the usa AttorneyвЂ™s workplace for the Eastern District of Pennsylvania filed an information charging Adrian Rubin of Jenkintown, PA, with: (1) one count of conspiracy to break RICO, 18 U.S.C. В§ d that is 1962(; (2) one count of conspiracy to commit mail fraudulence and cable fraudulence, 18 U.S.C. В§ 371; (3) two counts of mail fraudulence, 18 U.S.C. В§ 1341; and (4) aiding and abetting mail fraudulence, 18 U.S.C. В§ 2. According to the billing document, between 1998 and 2012, Rubin owned, controlled, financed, and/or struggled to obtain numerous organizations that issued short-term вЂњpaydayвЂќ loans вЂ“ each of which allegedly flouted state guidelines to show a profit.
The RICO Allegations
The RICO allegations against Rubin comprise principally, not solely, of RubinвЂ™s alleged involvement in three major payday financing tasks: (1) a вЂњrent-a-bankвЂќ scheme to give payday advances in violation of state legislation, (2) moving of financing operations to a situation that is вЂњusury friendlyвЂќ in order to make loans in states that prohibit usury; and (3) a вЂњrent-a-tribeвЂќ scheme in order to prevent usury regulations. Continue reading Today the allegations are nothing new, and the information details a history of lending models still under scrutiny