Justice Information. SCOTT TUCKER and TIMOTHY MUIR

Justice Information. SCOTT TUCKER and TIMOTHY MUIR

The Sham Tribal Ownership of this Business

In reaction to complaints that the Tucker Payday Lenders had been expanding abusive loans in breach of the usury legislation, a few states started initially to investigate the Tucker Payday Lenders. A legal doctrine that, among other things, generally prevents states from enforcing their laws against Native American tribes to thwart these state actions, TUCKER devised a scheme to claim that his lending businesses were protected by sovereign immunity. Starting in 2003, TUCKER entered into agreements with several native tribes that are americanthe “Tribes”), like the Santee Sioux Tribe of Nebraska, the Miami Tribe of Oklahoma, as well as the Modoc Tribe of Oklahoma. The goal of these agreements would be to result in the Tribes to claim they owned and operated areas of TUCKER’s payday financing enterprise, to ensure whenever states desired to enforce laws prohibiting TUCKER’s loans, TUCKER’s financing companies would claim become protected by sovereign resistance. Inturn, the Tribes received payments from TUCKER, typically one per cent associated with the profits through the part of TUCKER’s payday lending company that the Tribes purported to possess.

So that you can produce the impression that the Tribes owned and controlled TUCKER’s lending that is payday, TUCKER and MUIR involved with a number of lies and deceptions. Among other activities:

  • MUIR as well as other counsel for TUCKER ready false factual declarations from tribal representatives that have been submitted to convey courts, falsely claiming, on top of other things, that tribal corporations substantively owned, controlled, and handled the portions of TUCKER’s company targeted by state enforcement actions.
  • TUCKER started bank reports to use and get the earnings associated with lending that is payday, that have been nominally held by tribally owned corporations, but which were, in reality, owned and controlled by TUCKER. TUCKER received over $380 million from the accounts on luxurious individual expenses, a number of which was used on a fleet of Ferraris and Porsches, the costs of the auto that is professional group, a personal jet, an extra house in Aspen, Colorado, along with his individual fees.
  • Employees of TUCKER making pay day loans over the telephone told borrowers, making use of scripts directed and authorized by TUCKER and MUIR, which they had been dealing with Native American tribes that they were operating in Oklahoma and Nebraska, where the Tribes were located, when in fact they were operating payday loans Tallahassee at TUCKER’s corporate headquarters in Kansas in order to deceive borrowers into believing.
  • These deceptions succeeded for a while, and state that is several dismissed enforcement actions against TUCKER’s payday financing organizations according to claims which they had been protected by sovereign resistance.

    The truth is, the Tribes neither owned nor operated any element of TUCKER’s payday lending company. The Tribes made no payment to TUCKER to get the portions for the continuing business they purported to possess. TUCKER proceeded to work his financing business from the headquarters that is corporate Kansas, and TUCKER continued to enjoy the gains associated with the payday lending organizations, which generated over $3.5 billion in income from simply 2008 to June 2013 – in significant component by asking struggling borrowers high rates of interest expressly forbidden by state rules.

    TUCKER, 55, and MUIR, 46, had been convicted in most 14 counts within the Indictment, including one count of conspiring to commit racketeering through the assortment of unlawful debt, three counts of taking part in a racketeering enterprise through the number of unlawful debt, one count of conspiring to commit cable fraud, one count of wire fraudulence, one count of conspiring to commit cash laundering, two counts of cash laundering, and five counts of breaking TILA.

    Mr. Kim praised the outstanding investigative work of this St. Louis Field workplace for the IRS-CI. Mr. Kim additionally thanked the Criminal Investigators during the united states of america Attorney’s Office, the Federal Bureau of research, plus the Federal Trade Commission for the case to their assistance.

    If you think you had been a target for this crime, including a target eligible to restitution, and also you want to offer information to law enforcement and/or accept notice of future developments in the event or more information, please contact the Victim/Witness product during the united states of america Attorney’s Office for the Southern District of the latest York, at (866) 874-8900. For more information, head to: