Trump Admin Penalizes $227M Payday Loan Scam With $1 Fine

Mick Mulvaney, acting Director of the Consumer Financial Protection Bureau.Screengrab/Associated Press/YouTube

Richard Moseley Sr. was handed a $1 civil penalty as opposed to a $69 million fine that would represent his profits.

Kansas City businessman Richard Moseley Sr. ran an illegal $227 million payday loan scheme through a series of businesses and was caught, but the Bureau of Consumer Financial Protection — a federal entity set up to police companies like Moseley’s — agreed to a mere $1 civil penalty due to the businessman’s inability to pay a larger fine.

The parties reached a settlement Friday that gives Moseley ten days to wire the $1 payment to the bureau, wrapping up a lawsuit over the scheme that earned Moseley $69.6 in profits.

From The Kansas City Star:

Moseley, 73, a commercial real estate professional before following the lead of several others in Kansas City into the illegal payday loan racket, was convicted last year on criminal charges associated with his businesses.

A jury found him guilty of operating a payday loan business that charged illegal interest rates and, in some cases, took money out of the bank accounts of consumers who never authorized a loan, and disguising the enterprise as an off-shore operation when it actually ran in Kansas City. Moseley was sentenced to 10 years in prison.

The settlement indicated both parties agreed to the $1 penalty in light of Moseley’s inability to pay a larger $69 million fine that would represent his profits from the business.

Both he and his son, Richard Moseley Jr., who worked the business with him, are banned from the payday loan industry going forward.

Read more here.