DOJ Targets Payday Lender Making Use Of RICO

On June 22, 2015, the usa Attorney’s workplace for the Eastern District of Pennsylvania filed an information charging Adrian Rubin of Jenkintown, PA, with: (1) one count of conspiracy to violate RICO, 18 U.S.C. § 1962(d); (2) one count of conspiracy to commit mail fraudulence and wire fraudulence, 18 U.S.C. § 371; (3) two counts of mail fraudulence, 18 U.S.C. § 1341; and (4) aiding and abetting mail fraudulence, 18 U.S.C. § 2. in accordance with the billing document, between 1998 and 2012, Rubin owned, controlled, financed, and/or struggled to obtain numerous organizations that issued short-term “payday” loans – each of which allegedly flouted state legislation to show an income.

The RICO Allegations

The RICO allegations against Rubin comprise principally, however solely, of Rubin’s alleged involvement in three major payday financing activities: (1) a “rent-a-bank” scheme to give pay day loans in violation of state legislation, (2) moving of financing operations to a situation this is certainly “usury friendly” in order to make loans in states that prohibit usury; and (3) a “rent-a-tribe” scheme to prevent usury guidelines. (more…)