Let me make it clear about Justice Information

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 all of the 17 counts of unlawful conduct the federal government charged with its superseding indictment: two counts of conspiracy to break the Racketeer Influenced and Corrupt Organization Act (“RICO”); one count of conspiracy to commit mail fraud, 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, a former investment banker, was at the payday financing company from at the least 1997 to 2013. Dubbed “the Godfather of payday lending” by the news during their trial, Hallinan owned, operated, and financed organizations that issued small-amount, fixed-fee loans and collected debts on these loans more than $690 million. The loans were understood on https://autotitleloanstore.com/payday-loans-id/ the market as “payday loans” because borrowers frequently took them away to cover costs after which reimbursed the key, plus costs and interest, using their next paychecks or other constant earnings, such as for instance social protection re re payments. Hallinan made their unlawful fortune by billing fixed charges and high interest levels far more than that which was permitted under states’ usury rules.

“Charles Hallinan, a complicated, very educated entrepreneur, had been nothing but that loan shark whose entire business structure ended up being constructed on trapping his victims within an 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 undeniable fact that we might maybe perhaps maybe not get him. He destroyed that bet,” McSwain commented. “Now, it is time for Hallinan to settle their debt with all the only money we are going to accept: their freedom along with his fortune, amassed at their victims’ expense.”

The us government proved at trial 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 ended up being sentenced in might 2018 to eight years’ imprisonment for his component into the scheme.

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

Included in the phrase imposed today, the us government desired and obtained a substantial forfeiture judgment against Hallinan, that may remove him associated with the trappings of success he acquired because of their illegal conduct. The region court ordered the defendant to cover a forfeiture cash judgment of simply over $64 million as profits associated with RICO conspiracy, and in addition ordered him to forfeit their curiosity about around $1.2 million in funds in 18 bank reports; two Mercedes Benz automobiles; one Bentley automobile; along with his Villanova mansion.

“IRS Criminal research is dedicated to making use of our forensic accounting abilities to simply help unravel complex monetary fraud and cash laundering schemes,” stated IRS Criminal research Special Agent in control man Ficco. “We are proud to work well with our police force partners to analyze and prosecute people who make an effort to enrich by themselves by fraudulent means. Charles Hallinan’s prison phrase is really a reminder there are harmful effects because of this kind of unlawful behavior.”

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

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