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25 October 2017 at 08:50 BST

General counsel and CEO convicted at trial for $3.5bn payday lending scheme

The duo could face prison over the scheme which was charging interest rates of up to 1000 per cent.

Luciano Mortula - LGM

Former general counsel Timothy Muir and Scott Tucker, ex-CEO, of AMG Services were found guilty on 14 counts, including money laundering, wire fraud, and violations of federal racketeering and lending laws. The pair were accused of operating a series of payday loan affiliates with interest rates of up to 1000 per cent which they claimed was owned by Native American tribes to limit the interest due.

Illegal and predatory scheme

Joon Kim, the acting United States attorney for the Southern District of New York, stated:  'As a unanimous jury found today, Scott Tucker and Timothy Muir targeted and exploited millions of struggling, everyday Americans by charging them illegally high interest rates on payday loans, as much as 700 per cent.  Tucker and Muir sought to get away with their crimes by claiming that this $3.5 billion business was actually owned and operated by Native American tribes. But that was a lie. The jury saw through Tucker and Muir’s lies and saw their business for what it was – an illegal and predatory scheme to take callous advantage of vulnerable workers living from paycheck to paycheck.' Mr Tucker has said he will appeal the verdict whilst Mr Muir has not commented. 


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