PHILADELPHIA – U.S. Attorney William M. McSwain announced that Charles Hallinan

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Charles Hallinan


PHILADELPHIA – U.S. Attorney William M. McSwain announced that Charles Hallinan

, 77, of Villanova, Pennsylvania, had been sentenced to 168 months in federal prison and ordered to pay a $2.5 million fine in connection with a scheme to collect hundreds of millions of dollars in unlawful debt obtained from high-interest loans today. In November 2017, a federal jury convicted Hallinan of most 17 counts of unlawful conduct the us government charged in its superseding indictment: two counts of conspiracy to break the Racketeer Influenced and Corrupt Organization Act (“RICO”); one count of conspiracy to commit mail fraudulence, cable fraudulence, and cash laundering; two counts of mail fraudulence and aiding and abetting; three counts of wire fraudulence and aiding and abetting; and nine counts of worldwide cash laundering and aiding and abetting.

Hallinan, an investment that is former, was at the payday financing company from at the very least 1997 to 2013. Dubbed “the Godfather of payday lending” 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 “payday loans” because borrowers usually took them away to cover costs then repaid the key, plus charges and interest, with regards to next paychecks or other constant earnings, such as for example social safety re re payments. Hallinan made their unlawful fortune by recharging fixed costs and high rates of interest far more than the thing that was allowed under states’ usury regulations.

“Charles Hallinan, an advanced, extremely educated businessperson, ended up being nothing but that loan shark whose entire spotloan loans website business structure had been constructed on trapping their victims in a endless financial obligation period,” said U.S. Attorney McSwain. “For years, this defendant unabashedly preyed on those that could minimum manage it—struggling borrowers whom made these loans frequently to cover life’s necessities. He bet their life style regarding the known proven fact that we might maybe perhaps not get him. He lost that bet,” McSwain commented. “Now, it is time for Hallinan to settle the only currency to his debt we shall accept: their freedom and their fortune, amassed at his victims’ expense.”

The us government proved at test that Hallinan knew these loans violated state legislation, so he hid their individual participation behind a number of “straw” loan providers, including a federally-insured bank and three Indian tribes. Hallinan’s co-defendant, Delaware lawyer Wheeler K. Neff, assisted Hallinan in structuring the scam and hiding Hallinan’s participation. Neff was sentenced in might 2018 to eight years imprisonment that is their component into the scheme.

“Charles Hallinan devised a way that is ugly make a pretty penny,” stated Michael T. Harpster, Special Agent in control of the FBI’s Philadelphia Division. “This multimillionaire lived big in the profits of their sleazy payday lending kingdom, constructed on the backs of men and women literally residing paycheck to paycheck. Excessive costs and usurious rates of interest had been the title for the game, and Hallinan constantly stepped away the champion. Well, maybe not this time around. Now he’s walking away in handcuffs, headed to federal jail.”

The government sought and obtained a significant forfeiture judgment against Hallinan, which will strip him of the trappings of success he acquired as a result of his unlawful conduct as part of the sentence imposed today. The region court ordered the defendant to pay for a forfeiture cash judgment of simply over $64 million as profits of this RICO conspiracy, and also ordered him to forfeit their fascination with roughly $1.2 million in funds in 18 bank reports; two Mercedes Benz automobiles; one Bentley automobile; and their Villanova mansion.

“IRS Criminal research is devoted to utilizing our forensic accounting abilities to greatly help unravel complex fraud that is financial cash laundering schemes,” stated IRS Criminal research Special Agent in control man Ficco. “We are proud to utilize our police partners to analyze and prosecute individuals who try to enrich on their own by fraudulent means. Charles Hallinan’s jail phrase is a reminder that we now have harmful effects with this form of unlawful behavior.”

Daniel Brubaker, Inspector in control of the usa Postal Inspection provider, Philadelphia Division, praised the investigatory work behind the conviction:“This working office prides itself on investigating this kind of unlawful behavior. We too are proud to possess worked with this police lovers to investigate those who aggressively scheme to prosper at the expense of other people.”

The truth ended up being examined because of the Federal Bureau of research, Internal sales provider Criminal Investigations, plus the united states of america Postal Inspection provider. It really is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Maria Carrillo.

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