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Phantom Debt Collectors From India Harass Americans, Demand Money
By BRIAN ROSS (@brianross) , CINDY GALLI and MATTHEW MOSK (@mattmosk)
June 7, 2012
Hundreds of thousands of cash-strapped Americans have been targeted by abusive debt collectors operating out of overseas call centers suspected of links to organized crime in India, law enforcement officials told ABC News.
The calls are part of a massive scam, one that appears to target struggling Americans -- especially those who have gone online to apply for payday loans. Armed with personal information from those pilfered applications, the threatening callers, who claim to be debt collectors poised to initiate legal action, have managed to pry loose millions of dollars from their victims -- even when the victims never owed money in the first place.
"This is what we call a phantom debt collection scam," said Jon Leibowitz, the chairman of the Federal Trade Commission. "It's a very pernicious and innovative new fraud."
Working through call centers in India, the commission estimates that the criminals have dialed at least 2.5 million calls, persuading already cash-strapped victims to send them more than $5 million. Some have reported receiving dozens of calls per hour. They are victims like Cindy Gervais, of New Orleans, who went online for a quick loan when her husband's car was hit by a driver who didn't have insurance.
Even though she paid the loan off, the so-called "phantom" debt collectors with Indian accents began calling to say she still owed money.
He more or less told me that if I didn't pay, they were going to have someone on my doorstep to arrest me," she told ABC News. "And that they were going to contact my place of business, and tell them what kind of person I am."
At first, she said she resisted. Then the calls became more frequent, and started to ring on her cell phone, and at the grocery distribution company where she had worked for 27 years.
"I was more or less was in panic mode because he told me there would be someone before noon at my place of business to arrest me and take me to jail," she said tearfully. "So I agreed to pay him."
After receiving scores of complaints, investigators with the FTC said they began tracking the calls, and following the payments. They alleged the payments led them to a California company run by an Indian-American named Kirit Patel, and that such scams would not be possible without American front men.
"I would say that all roads of this scam, or many of the roads of this scam, lead back to Mr. Patel," said the FTC's Leibowitz.
ABC News tracked Patel for weeks, from the suburbs of San Francisco to Austin, Texas.
Patel refused to talk. But his lawyer, Mark Ellis, said he believes it is far too early to pass judgment on his client. Ellis, a Sacramento-based attorney, told ABC News that Patel was hired for a nominal fee to set up an American shell company, and had no idea what the call centers in India were doing.
"I can tell you, he was as snookered by the people in India as anybody," Ellis said. "He's a 69-year-old man who is nearing his retirement who thought all he had to do was set up some corporations and everything was on the up and up. He's completely dismayed that he has become the lightning rod of this entire problem."
A close friend of Patel's also defended him in a brief interview at his home, saying Patel was not trying to defraud anyone -- he was just an unwitting, bit player in a larger scheme.
"If Mr. Patel was just a cog in the wheel he seems to have been a pretty big cog," Leibowitz said. "It is clear that Patel was integrally involved with this scam."
Leibowitz points to thousands of pages of financial and phone records gathered by the FTC and filed as part of a civil case brought against him in the U.S. District Court in Sacramento last month. When FTC lawyers sought to freeze his assets and prevent his business from continuing to operate, Patel responded by invoking his rights against self-incrimination. His lawyer told ABC News he has had to be careful in how he responds to the allegations in civil court "because there is a potential criminal action," but that Patel maintains the allegations against him are false.
Federal investigators said the phantom debt collection operation that allegedly benefitted from Patel's assistance was one of several that all trace back to the same small town in Western India called Ahmedabad. Callers use technology to make it appear that the calls originate inside the U.S. Victims provided ABC News with recordings of dozens of the calls, and many of the thickly accented callers appear to be reading off a script.
"Subpoenas have been readied, and Monday morning you're going to be picked up from your home," one caller says on a victim's voicemail. "And you have children. Don't worry about your children. We have a childcare department to take care of the children."
"You will be behind bars for six months," said another caller. "And once you go behind bars, you will lose your job. Once you are behind the bars, you won't get a single drop of water."
William Peerce Howard, a Tampa attorney who represents victims of harassment from debt collectors, said it takes an especially twisted criminal to use threats and coercion to pry money from someone who is already struggling financially
"These guys really are the most visible villains in America today," he said. "They make a living scaring people."
Mark Merola, of Florida, said he just panicked when the caller told him he might be arrested at the deli where he works in a Florida retirement community.
"I was nervous. I didn't want to embarrass myself, my family," he said. He used his debit card to pay the collector $576.
Afterwards, he says he realized "how stupid I was."
"It just happened so fast," he said. "I got scared."
Leibowitz said he hopes with more attention, future potential targets of the scam will recognize red flags before they turn over any money.
If callers say they are from the police, consumers should know that law enforcement officers do not collect debt for private parties. If the caller is speaking with a thick Indian accent, but calls themselves by a names such as Officer Mike Johnson, that should be a tip off. And if they're calling 40 times in two hours, that's another red flag. "Legitimate debt collectors, legitimate pay day lenders don't do those sorts of things," he said.
Merola said he would like to see anyone involved in the scam prosecuted aggressively.
"There's no place in society for these people," he said.
Just got a call from a "Robert Marshall" saying that I had someone that I had a matter tat he was that was going to court. I had NO CLUE what he was talking about. He asked me if I had a lawyer and I told him no and that I wasn't interested in his services. He then told me that he wasn't offering me a service and that I had a legal matter and wanted to know what I was going to do about it. I hung up and they called back and left a message stating again that it was not a service he was trying to sell me and that I only had one chance to clear this up and once it went to court there was going to be no one to help me.
I got a call from this number on Oct. 5, 2012 at work and told by a John Anderson (indian accent- unknown number) that I was being sued and should contact Xavier Marshal immediately for further details about my case at this number. Regrettably for me as I had never even heard of this scam, I called Mr. Marshal and was given a laundry list of charges and told I had to act immediately to avoid the casue being sent to the court. I was also told the same story about them going to my workplace, arrest warrants, etc. I do currently have payday loans and am completly current with them. Nevertheless, I was terrified by what he was saying it was relly intimidating, and agreed to "settle out of court" Payment method was by green dot MoneyPak purchased at CVS and they got me for $1050. This money was to pay the court. However later that day I got a second call from an unknown number with a similar story from a female caller with a very heavy indian accent that I could hardly understand, telling me to call Tom O'Brian at 904-436-9001--that was when I realized that I had been scamed. I did call him just to hear what he would say-- he wanted a similar amount--I told him that was not possible and he said he would give me time to send the money throught he same green dot MoneyPak method. I have since been reading about these people they are really a piece of work. As they do have some of my personal informaton, which they were repeating to me, I have filed a police report and have a fraud alert with the credit bureaus, my bank and have also alerted my phone company. My next call will to be the FTC as I have read that they already have been investigating these scams. I tell my story as I was totally caught of guard as I was exremely busy at work and now I realize that I should never have panicked or listened to any of the crap that was being told to me since I know I am not guilty of anything except, of course being naive.
i received a call from this number too!! i ignored it at first.. i was @ work.. and they weren't happy enough to call me on my phone.. they called my workplace.. i answered it.. i thought it was something important.. but here comes the Robert guy.. at first i thought it was just some telemarketer trying to invite me in another payday loan.. so i said i wasnt interested and i hung up.. after 5mins they called back.. to my workplace.. i answered and i barely understand what he was saying.. he had a very strong indian accent.. so i told him that i have to call him back so he gave me this number 6077957354.. so on my lunch break.. i tried calling them.. this lady pick up i gave my name and she transferred me to this robert guy.. i really didnt understand what he was saying.. all i understand is that a cash advance america is pressing charges against me, if i have a lawyer.. so i was like "OHMYGOD".. i got really scared. i tried asking him questions but he was like "let me talk first".. he started talking about talking to my manager and getting me fired.. and then i asked him again whats the name of the company pressing charge against me.. then they hang up.. so i was like so worried i feel like im having a heart attack or something.. i never have had any criminal record.. i feel like crying already.. and i came to realize.. i dont owe anything to any payday loan anymore.. and if ever you get late payment on anything its gonna go to a debt collector first right?? so i became so suspicious.. i tried searching the number on the internet.. and i found this site.. thank God! i got peace of mind.. i mean why would they do that??? what if i got a heart attack and go to a hospital?? who's paying for it?? me not them!! why would they do that.. if anything i want to sue them for harrassment.. calling my workplace too.. oohhmmy!!
I was called today, 10/18/12, at 5pm EST, by a Paralegal at American Legal Group and told that they had a lawsuite against me. I was told to call 607-795-7354 ext 121, a Mr. Zavier Marshall,
The caller id: 607-795-7354 (Elmira)? same number. Because of this site I told them they should be ashamed of themselves and hope they go to jail.