PHILADELPHIA вЂ“ U.S. Attorney William M. McSwain announced that Charles Hallinan, 77, of Villanova, Pennsylvania, ended up being sentenced right now to 168 months in federal jail and ordered to pay for a $2.5 million fine associated with a scheme to get hundreds of millions of dollars in illegal financial obligation acquired from high-interest loans. The government charged in its superseding indictment: two counts of conspiracy to violate the Racketeer Influenced and Corrupt Organization Act (вЂњRICOвЂќ); one count of conspiracy to commit mail fraud, wire fraud, and money laundering; two counts of mail fraud and aiding and abetting; three counts of wire fraud and aiding and abetting; and nine counts of international money laundering and aiding and abetting in November 2017, a federal jury convicted Hallinan of all 17 counts of criminal conduct.
Hallinan, an investment that is former, was at the payday financing company from at the least 1997 to 2013. Dubbed вЂњthe Godfather of payday lendingвЂќ by the news during their test, Hallinan owned, operated, and companies that are financed issued small-amount, fixed-fee loans and collected debts on these loans more than $690 million. The loans had been understood in the market as вЂњpayday loansвЂќ because borrowers frequently took them off to protect costs after which repaid the key, plus charges and interest, using their next paychecks or any other income that is steady such as for example social protection re payments. Hallinan made their unlawful fortune by billing fixed costs and interest that is high far more than the thing that was allowed under states’ usury regulations.
вЂњCharles Hallinan, a classy, very educated businessperson, ended up being nothing but that loan shark whose business that is entire had been constructed on trapping their victims within an endless financial obligation period,вЂќ said U.S. Continue reading