A federal judge yesterday sentenced Greg MacKinnon to three years in prison for defrauding the U.S. government out of more than $3 million in taxes on income that was earned running a debt collection scam that bilked millions from unsuspecting individuals. Prosecutors had been seeking a five-year sentence for MacKinnon, 59, but the judge took into consideration MacKinnon’s military record, health issues, remorse, family support, and lack of a criminal record in deciding on a lesser sentence.
The Background: MacKinnon last year pleaded guilty to charges of conspiring to defraud the government last year. He admitted to transferring money from his collection company, Vantage Point Services, to other businesses and pretending those transfers were for business purposes. The money was eventually returned to MacKinnon and another co-conspirator.
- MacKinnon and other defendants were sued by the Federal Trade Commission in 2015 for violating the Fair Debt Collection Practices Act by impersonating government agents and district attorneys, threatening arrests if payments were not made, illegally charging payment processing fees, and telling third parties that individuals had committed crimes and were facing arrest.
- The defendants reached a settlement with the FTC and New York Attorney General in 2018, agreeing to a suspended judgment of $22 million and a permanent ban from the collection industry.
The Sentence: Prosecutors attempted to put MacKinnon’s volunteer work — setting up free COVID-19 testing sites and driving a cab for Medicaid patients — into perspective, noting it all took place after MacKinnon was made aware that he was being investigated by the government.
- MacKinnon expressed remorse for his actions in a letter submitted to the judge, saying ““I take full responsibility for my actions. I was wrong. I exercised poor judgment and exhibited poor decision-making.”
- “As time moves forward, I will do everything I am capable of doing to pay back what I owe and work hard to correct the wrong that I have done.”
