The collections manager for an operation that fraudulently collected debts from individuals has pleaded guilty to charges of conspiracy to commit mail fraud and wire fraud and is facing up to five years in prison.
Ronald Shane Hough, a collections manager for Direct Processing LLC, claimed he and others made false misrepresentations, threatening remarks and comments, and abusive language to coerce individuals to make payments on fake debts they did not owe.
The tactics netted the company as much as $1 million in fraudulent payments. The scammers also used fictitious company names and claimed there was pending litigation or criminal charges against those who were being contacted for payments.
Hough pleaded guilty before a U.S. Magistrate judge in North Carolina yesterday.
