Feds Add Another Charge Against Kansas City Payday Loan King

Inside Subprime: June 14, 2019

By Lindsay Frankel

Another charge has been handed down for a Missouri man who sold fake payday loan leads.

Tax evasion was tacked on to the laundry list of alleged crimes by a Kansas City business man in May 2019.

The business man is accused of lying about millions in assets to the IRS, at one point telling the agency he had no income when he made nearly a million dollars that year. Some of those assets and ways he spent his money included trips on private jets, luxury cars, a multimillion-dollar home, and a private club in a swanky Colorado ski town.

The crimes that contributed to his latest charge? He allegedly received business income and loans and didn’t file them on his taxes. He also reportedly didn’t pay down millions in taxes, penalties and interest he owed to the IRS.

He has already been indicted on 15 felony counts tied to his payday loan activity. According to federal officials, he created portfolios of fake payday loans to sell to debt collectors. The collectors then bothered consumers until many of them paid the fake debts, either because they just wanted the calls to stop or because they were duped into thinking they owed money. Many of those consumers would call family members or co-workers, too, and even threaten arrest.

In a second scheme, he allegedly had consumer debt portfolios held with fake loans made out to thousands of consumers already in bankruptcy. He provided buyers with sensitive information on the ongoing bankruptcy cases. Buyers then filed claims in the bankruptcy cases, expecting that they would see some payment when the proceedings were over. Carrying on for years, the fraud was only realized after bankruptcy trustees began to question one lender’s payday loans and a bankruptcy judge started investigating in Texas.

Tucker reportedly made millions off of these schemes from 2014 to 2017. The federal government says he only paid $512 to the IRS, though, acquired through a levy on a bank account.

The federal indictment also called for him to release more than $7 million he made from the schemes.

He pleaded not guilty to those earlier charges, but Tucker could face years in federal prison.

The business man is the brother of a Kansas City payday loan magnate, who ran a $2 billion payday loan operation that affected millions of consumers. That payday lender is currently in federal prison for many charges, including racketeering. He is facing more than 16 years.