The Supreme Court is on the side of Scott Tucker, who defrauded millions through KC’s payday loan program
Scott tucker, the man responsible for scamming millions of Americans – many in Kansas City – through payday loans got the support of the Supreme Court. Tucker was stopped and convicted in 2016, and appealed against part of his conviction of the Southern District of New York.
The pitch reported on Tucker and his associates since 2013, when the news of the predatory payday lenders in Kansas City broke.
The courts have found Tucker guilty of money laundering, racketeering, fraud and illegal debt collection, among others. With this conviction, his $ 2 billion payday loan empire collapsed and he was sentenced to 16 years. The conviction also included a fine of $ 1.3 billion from the Federal Trade Commission.
AMG Capital, one of Tucker’s payday loan companies, appealed against the FTC fine Nevada Federal Courts agreed that Tucker should pay. This money would be given as restitution to the many people Tucker allegedly defrauded by using illegal means to enrich themselves at the expense of the working class.
The $ 1.3 billion fine was the highest ever imposed by the FTC, but the Supreme Court ruling overturned and struck down the fine. Additionally, the ruling removes the FTC’s ability to seek restitution in future court cases unless Congress restores that power.
Tucker – who was the subject of an episode of Netflix Dark silver– always serves his prison sentence, which he tried unsuccessfully to appeal.
The fine the FTC handed to Tucker was record at the time, and was a semblance of justice for low-income people who fell prey to corporate greed. Instead of justice for the millions of Tucker’s victims, The Supreme Court limited the power of the FTC and benefited a man who sacrificed the welfare and hard-earned income of millions of people in order to profit from their struggles.
The FTC is in the process of ask congress to restore their power seek compensation from the courts – so that the agency can more fully function as a watchdog for consumers. In the meantime, Tucker has won a major victory.