A Buffalo-area man has pleaded guilty to conspiracy to commit wire fraud as part of his role in a debt collection scam that netted $22 million in payments from individuals who were threatened and duped into paying debts multiple times.
Carmelo Collana pleaded guilty yesterday. He joins a number of other members of the scam, including Gregory MacKinnon, Angela Burdorf, Vantage Point Services LLC and Payment Management Solutions, and Joseph Ciffa and Bonified Payment Solutions Inc., who have either pleaded guilty or been permanently barred from participating in the credit and collection industry.
Collana was accused of opening multiple bank accounts that were used to process and facilitate payments used by a number of different collection agencies that were operating using multiple names, according to prosecutors. Collana helped orchestrate a scheme where collectors placed calls to individuals “in an attempt to collect money, and utilized fraudulent tactics, including false threats of arrest, false claims that the callers/collectors were attorneys, and false claims as to criminal charges pending against the ‘debtors,’ ” prosecutors alleged.
Collectors used threats and intimidation, as well as posing as attorneys, to coerce individuals into making $22 million worth of payments. One of the scripts used by the collectors looked like this:
This message is intended to reach debtor. My name is ________, calling on behalf of business name. This call is to inform you of a two-part felony complaint that was forwarded to my office for pursuance of charges into ___________ county. Once filed, a warrant for your arrest will be issued and the Sheriff’s department will accompany and assist me to your home or place of employment of detainment. If you have any questions, concerns, or objections prior to filing, contact my office back at ____________. Debtor you have now been legally notified in accordance with all state and federal laws.
The Federal Trade Commission and the Attorney General of New York have reached a $22 million suspended sentence with the group
