A federal judge has blocked a brother of
professional racecar driver and payday loan businessman Scott
Tucker from selling bogus debt portfolios to collection
agencies, which have used them to get consumers to pay debts
they did not owe, the U.S. Federal Trade Commission said.
A preliminary injunction against the brother, Joel Tucker,
was entered on Friday by U.S. District Judge Julie Robinson in
Kansas City, Kansas, court records show.
Joel Tucker could not immediately be reached for comment,
but according to court records he plans to hire a lawyer.
The FTC on Dec. 16 filed a civil lawsuit against Joel Tucker
and three of his companies, claiming that they sold fake loans
supposedly made by the bogus lender Castle Peak or the online
loan provider 500FastCash, whose trademark belongs to a company
linked to Scott Tucker.
According to the regulator, Joel Tucker's loan lists
contained Social Security and bank account numbers, which
collection agencies then used to persuade consumers that the
debts were real.
Payday lenders offer short-term loans, often with high
effective annual interest rates, to tide over borrowers until
they receive their next paychecks.
Scott Tucker, who has competed on U.S. and European racing
circuits, pleaded not guilty last February to federal criminal
charges in Manhattan of running a $2 billion payday lending
scheme that exploited 4.5 million consumers.
An April 17 trial is scheduled in that case. Scott Tucker is
also appealing a Sept. 30 order by a federal judge in Nevada
that he and several of his companies pay $1.27 billion to the
The Kansas case is FTC v Tucker et al, U.S. District Court,
District of Kansas, No. 16-02816.