Erica Lounsberry, 37, of Niagara Falls, N.Y., has been sentenced to 21 months in prison for her involvement in a fraudulent debt collection scheme that bilked victims out of more than $2 million. The sentencing, handed down by District Court Judge Richard J. Arcara, marks another chapter in the ongoing crackdown of an illegal debt collection ring that has landed a handful of others in jail.
Zoom in: Lounsberry was involved in a scheme that was active between January 2014 and February 2017 where fraudulent debt collection agencies operated under names like Lakeside Mediations, Lincoln Mediation, and Elite Services. As a manager, Lounsberry trained and directed employees to contact supposed “debtors” using false identities and threats of arrest to induce payments. These agencies used tactics such as impersonating attorneys and making false claims of criminal charges.
- Payments were coerced through various methods, including MoneyGram transfers and credit card payments.
- The operation collected more than $2.1 million from unsuspecting consumers.
- The “debtors” were eventually directed to employees posing as attorneys, and were provided with payment instructions, supposedly to settle their outstanding debts.
- Lounsberry and her colleagues often targeted individuals who had already paid, using them as “easy targets” for additional fraudulent collections.
Zoom out: Along with Lounsberry’s sentence, others that have been sentenced as part of the scam are:
- Shauniqua Rodriguez, who was sentenced to 12 months in prison for her participation in a related operation.
- Debbie Seright, who was sentenced to 24 months in prison
- More details about who was involved and what they did can be accessed by clicking here.
