Conman Gets Rich From Debt Collection Service Scam

Debt collection services offered for a reasonable fee seemed like a great offer but it was a fraud scheme due to which one man became rich and it ruined many others by making them financially weak.

Fraud victim, Colby Stafford said, “When you’re my age, you think you are reasonably street savvy, the answer to that is, no I wasn’t”. Colby learned a hard lesson in his life which is related to trust when his business lost $10,000 in a telemarketing scam and fraud by working with a fraud company. He added, “At that point in time I was growing so fast, which is a good thing, but you’re spending all your cash”. He got a $50,000 loan to have more money readily available for his business but the loan left him in vulnerable condition.

“The telemarketers cold called prospective clients and promised for a fee they would collect their business debts”, said US Postal Inspector Camille Hammonds.

Neil Madison, who was the owner of the debt collection agency, utilized some threatening methods. He was pitiless in getting money from the individuals but instead of returning it to business owners as he promised them, he kept it all for himself and ruined the business of those individuals.

Hammonds told, “He threatened to take them into involuntary bankruptcy, to take away their homes their vehicles, and to see that they were criminally charged with fraud”. According to him, “The funds were used to buy a yacht, numerous luxury vehicles, a house in Laguna Beach CA, occasional prostitutes for top employees”.

Madison made promotional flyers with something known as a tri-con report which supposedly showed that a debtor’s ability to pay is included as part of his scheme.

Hammonds also told, “In reality, the report was totally bogus and made up. The Tri-con report was an inside joke known to the employees as ‘we will try to con the client”.

For a short period of time, the con was successful. Colby Stafford and more than 600 other victims lost more than $6 million dollars. In the victims, those business owners are included who thought they had paid off their debts to other companies and others who thought the money they were owed had been collected.

Madison was taken into custody and sentenced to eight years in jail, but Colby Stafford believes Madison could have made his money without cheating other individuals. He said, “If you work that hard at something… my God I pay a lot of money to people who work hard for me. Why don’t you come work for me? You’re working so hard to con people, and by the way if you come and work for me you don’t have to go to jail”.

Every person should be careful and check out every company before doing business with it, said the Postal inspectors. The state attorney general’s office or the Better Business Bureau are good references for getting detailed information about all companies to avoid scam and fraud.

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