FTC accuses racing driver Tucker’s brother of selling bogus debt

Scott Tucker leaves Manhattan Federal Court in New York City on February 23, 2016. Tucker, a racing car driver, pleaded not guilty Tuesday to charges stemming from what US prosecutors called his role in a loan company on $ 2 billion online salary that tapped 4.5 million cash-strapped consumers. REUTERS / Brendan McDermid TPX IMAGES OF THE DAY – RTX289ZJ

Reuters mentioned.

A preliminary injunction against the brother, Joel Tucker, was filed Friday by U.S. District Judge Julie Robinson in Kansas City, Kansas, according to court records.

Joel Tucker could not be reached immediately for comment, but court records show he is considering hiring a lawyer.

On December 16, the FTC filed a civil lawsuit against Joel Tucker and three of his companies, claiming they sold bogus loans allegedly made by bogus lender Castle Peak or online loan provider 500FastCash, whose brand name is owned by a company related to Scott Tucker. .

According to the regulator, Joel Tucker’s loan listings contained social security and bank account numbers, which collection agencies then used to persuade consumers that the debts were real.

Payday lenders offer short-term loans, often with high effective annual interest rates, to help borrowers until they get their next paycheck.

Scott Tucker, who has competed on American and European racing circuits, pleaded not guilty last February to federal criminal charges in Manhattan for running a $ 2 billion payday loan program that exploited $ 4.5 million. of consumers.

A trial on April 17 is scheduled in this case. Scott Tucker also appealed a Sept. 30 order from a Nevada federal judge that he and several of his companies pay $ 1.27 billion to the FTC.

The Kansas case is FTC v Tucker et al, US District Court, District of Kansas, No. 16-02816.

Reporting by Jonathan Stempel in New York; Editing by Leslie Adler


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