A professional racing driver who allegedly spent $ 100 million on a fleet of luxury cars and a private jet funded by a $ 2 billion payday loan scam that charged up to 700% interest was arrested by the FBI.
Scott Tucker has been charged with conspiracy, illegal debt collection and underestimating consumer interest rates.
Federal prosecutors allege Tucker’s firm scammed its 4.5 million customers in order to fund its luxury lifestyle which included a fleet of sports cars and a private jet.
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Scott Tucker, pictured left at Le Mans France in the pit lane of the 2012 24 hour race, is accused of running a $ 2 billion payday loan scam that provided ‘usurious’ loans to “Americans in difficulty”
Tucker, pictured, was arrested in Kansas by the FBI on Wednesday for the alleged payday loan scam
Tucker, left, is accused of spending over $ 100 million on his luxury lifestyle, including his racing team
Documents filed with the U.S. District Court for the Southern District of New York show federal authorities seized $ 2 billion in cash and assets from Tucker and his co-accused Timothy Muir. It is claimed that Muir acted as Tucker’s legal advisor.
It is understood that Tucker started with a hedge fund before entering the payday lending business.
He started his racing career in 2006 at the age of 44 and in 2010 he finished tenth in the grueling 24 hour race at Le Mans, France.
He created the Level 5 racing team which hired a number of professional drivers, but Tucker regularly raced the fleet of Ferarris and other high powered supercars.
Federal authorities seized an $ 8 million vacation home in Aspen, Colorado, along with six Ferraris, four Porsches and a Learjet 60.
They also froze bank accounts controlled by himself and his wife Kim.
According to the indictment, the racing driver operated “Tucker Payday Lenders” which offered small, short-term, high-interest, unsecured loans.
Court documents claim that Tucker and Muir “systematically exploited more than four and a half million workers across the United States who were struggling to afford basic expenses, including food and shelter.”
“Tucker and Muir, through Tucker Payday Lenders, have provided loans to these individuals at usurious interest rates of up to 700% or more using deceptive and deceptive communications.”
The FBI seized $ 2 billion in assets belonging to Tucker and his co-accused Timothy Muir including this Learjet
Court documents claim Tucker used loan company to fund this Ferrari 458 Challenge
The court ordered the seizure of five Ferraris belonging to Tucker, which would also include this 458.
Prosecutors claimed Tucker had entered into “fictitious business relationships” with Native American tribes to avoid prosecution because they were entitled to “tribal sovereign immunity.”
Court documents allege that between 2003 and 2012, Tucker Payday Lenders “generated enormous revenues” of more than $ 2 billion, “of which Scott Tucker, the defendant, received hundreds of millions of dollars in profits.”
“On these illegal products, Tucker spent more than $ 100 million on personal expenses such as luxury homes and automobiles, jewelry, a private plane, and expenses for a professional auto racing team, which his website, runs Ferraris under “marquee.” events around the world, including France, Monaco and Abu Dhabi. ‘
It is claimed that Tucker used money from bank accounts that were nominally tribal controlled for his own personal expenses.
The indictment claimed Tucker’s companies were charging 782.14% annual interest on their loans.
The documents given to the borrowers claimed that for every $ 500, they would have to repay $ 650 in total.
However, prosecutors say Tucker structured the loans so that borrowers were forced to repay much more than they expected.
The court also ordered that this house in Aspen, Colorado be seized pending the outcome of its trial.
FBI seized a $ 2 million Ferrari 599XX, similar to this one, which was only sold to “loyal” customers
FBI also took a Porsche Carrera GT from Tucker’s collection, file photo
According to the indictment: “Tucker Payday Lenders automatically withdrew all of the interest payment on the loan but left the principal balance intact so that on the borrower’s next pay day they could again automatically withdraw an amount equal to the full interest payment due (and already paid) on the loan.
“With Tucker’s approval, Tucker’s payday lenders automatically removed these ‘finance charges’ payday after payday (usually every two weeks), with no portion of the money applied. principal repayment, at least until the fifth pay day, when they have started withdrawing an additional $ 50 per pay day to be applied to the loan principal balance.
Prosecutors say thousands of borrowers complained to the company, regulators and consumer protection groups after finding out they had been misled about the true cost of the loans. This caused these accounts to “incur negative balances” and forced low income customers to pay additional fees and charges.
As a result, many of these customers were forced to take out new usurious loans – including from Tucker Payday Lenders – to pay their bills, cover unexpected additional “finance charges” on Tucker Payday Lenders loans, and to pay off debts. additional costs that resulted from these loans.
Authorities said Tucker was arrested in Kansas City, Kansas on Wednesday and will appear in Kansas court initially.
In a similar case, Manhattan US Attorney Preet Bharara announced the arrest in Kansas City, Missouri, of a man accused of granting predatory loans to more than 620,000 struggling Americans.
