“Godfather of Payday Lending” sentenced to prison for multiple frauds.
A man from Jenkintown will serve 37 months in prison for a racketeering scheme. The operator of the scheme was Adrian Rubin who conned victims with a payday lending business. This business was fraudulent and “violated the usury laws of Pennsylvania,” states US attorney, Zane David Memeger.
Between 1998 and 2012 Rubin gave victims short term loans known as “payday loans.” He did this through multiple businesses that he either owned or worked for. These businesses helped him collect over two-million dollars in loan debt.
Payday lenders like Rubin are notorious for offering loans that are difficult to pay back. Usually people who get a payday loan have to borrow again to pay back their debts. Sometimes payday lenders even have access to the bank accounts of borrowers. According to Stop the Debt Trap, advertisers sell these kinds of loans as a “quick fix”.
Rubin was also charged with helping his sons set up a telemarketing scam. Rubin and his sons sold customers credit cards that were virtually useless. The cards came with hefty upfront costs and monthly fees. Even worse, they could only be used at a handful of select online stores. Customers found out about this after purchasing the credit cards. This scam affected more than 70,000 people and earned the perpetraitors a total of $7,552,473.
While Rubin tried to make amends for his crimes by testifying against other criminals and making recordings for the FBI, he was still sentenced to 37 months in prison. He was also ordered to pay more than $20 million in financial penalties.