I saw it. Great piece. Bravo, ABC News!

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.

http://abcnews.go.com/Blotter/phantom-debt-co ... 16512428&page=2

YEAH I GOT THE SAME CALLS HIS NAME IS JAMES AND HIS SUPERVISOR NAME IS DAVID CHANDERP, THAT HE IS COMIMG TO MY JOB TO INVESTIGATE AND AND ARREST ME IF I DO NOT PAY HIM, I TOLD HIM TO SEND A WRITTING DOCUMENT SAYING TAHT I OWN THEM MONEY AND HE TOLD ME TO SEND HIM $800.00 FIRST IF WANT THE DOCUMENTATION AND THEM PAY $200.00 MORE F****NG CRAY PEOPL THEY HAVE ANYTHING ELSE TO DO DO NOT FALL FOR IT THEY ARE JUST SCAM SCAM !!!!!

Same # ( 201) 565-0808, thick indian accent, said law firm name of Clifton and Drew, using the name Malvin Alston.

They called me. Same story. A lawsuit, but it was against my mother. When I told him we just shared a cell-phone plan, he asked if I wanted to transfer to talk to someone to find out information about what was happening. This raised a red flag for me.  The caller ID referred to it as MGL GRP. Total scam.

I received numerous calls from this same number for a guy named David Watson. I was so afraid I was going to be arrested. Until I looked up this number and found out it was a scam. He called again while I was on the site. I told him what I was reading and he said no no those people just dont want to pay there bills. I said Im sorry David I will contact my attorney do not call me again. He has called 5 times in the last 10 minutes.

I just got this call today. Saying the same thing. I was scared to death that I was going to be arrested. Until I looked up the number and found this site. Thank the Lord I did not get the Green Dot card and pay them..

I got a call here at my work the other day and my boss just gave me the number. I tried to call it back and got nothing. I was thinking the same thing that i know i didn't get anymoney or do anything wrong. So I'm not going to call them back. I'll also let my boss know when i see him again.

I just got a call from a block number I don't why I answer but I did. I'm so piss to the point I for got her name but she said I owe $5.000 for a loan I never took out. So she said if I pay $249 they will throw the case away if I don't pay I will get locked up. That cops will be sent to my job I was scare at first but now that I looked it up I knew it was a scam. Matter of fact once she told me to pay at a Walgreens or rite aids I knew it was fake cause she got piss and hung up on me cause I said I believe you are a scram, she says find handle it in court. First it was block but she gave me a number to call just to pay her 201-565-0808

Had a rude awakening call (4am) from this number, telling us (my husband & I) we had a lawsuit against us for a debt we owe.  We asked how much, when it was deposit, where do we send the money too, what court house we need to go to, and other ?s, they told us they cant give out the information.  I searched this number online and found a lot of people making reports on them.  I turned the tables around, and keep calling them back telling them that I was at the police office making a report on them and one of the officer wanted to talk to them.  They hung up, and when we try to keep calling, they don't answer now.  They gave us a address of their location where I looked up on google maps, come to find out its a residential community.  They think we so stupid, but little do they know, we're the ones on them and now its their turn to feel how we feel when they keep calling.  DUMMIES, dont fudge with other people who work so hard for their money.

GOt a call from a guy name Roger at my job and now he keeps calling my phone.  When I asked him to send me the information he saying that he can't send it.   If this is a lawsuit that is against me, then why can't I have a the information?  These people keeps pushing me for my information.

Yeah I have  had the issues also and they askin to many darn ? To say that you are calling me about a debt I owe you hell you shld have all my info if I we you ..cus Im sure the person. I owe has it....well I tld them u cn tk it n stick it Where the sun dnt shine n send the police they better have all there paperwrk to whn they come ..jst dwn rite Stupid people in this world get a life and a job instead of trying to live off of people who make a honesty living....jerkoffs losers

Can the authorities please find this guy that makes these calls? He calls my job stating he is Paul from Princeton Group. A scam and it must be stopped.

i received a call on voicemail at work from a Paul,he had a very heavy indian accent and there
was alot of background noise....said he needed myself or my attorney to call asap! what a bunch of bullcrap!! HOAX HOAX!!!

My wife got this call on her cell. First caller said he was Eric. She knew it was a scam, she got burned once before and forntunately our bank stopped the withdrawal. She hung up on him. He called back minutes later, but this time he is Melvin, the supervisor, and very rude. She said send me the info of who I owe (Payload or something) "Well, we need your address, what is it?" You mean you are supposed to be a legitimate collector and you don't even have my name & address?? She had a few more words & hung up.

My wife got this call on her cell. First caller said he was Eric. She knew it was a scam, she got burned once before and forntunately our bank stppoed the withdrawal. She hung up on him. He called back minutes later, but this time he is Melvin, the supervisor, and very rude. She said send me the info of who I owe (Payload or smething) "Well, we need your address, what is it?" You mean you are supposed to be a legitimit collector and you don't even have my name & address?? She had a few more words & hung up.

just received a phone call from eric parker wanting me to call this number back. 201-565-0808 please do noy confirm any info because if you do they will get you. i made this mistake last year and they got me for a couple hundred bucks.

a heavy accented person named " eric parker " said i am being sued for a loan that i owe on that I have never taken out. he called from a 213 are code but wants me to call back on phone number 201-565-0808. its a scam im sure of it.

I received several calls from this number, each one from the same man who is using a different name each time.

The first time he called me, he stated his name was Kevin Johnson and that he was an attorney.  He said I was being sued for a loan I allegedly took out, then told me I had to give him my debit card info immediately and pay the sum of around $850 or I'd be taken to court.  I hung up on him.

The next time he called he claimed his name was Luca Martin and that he was a police detective in New York City.  He stated he had an arrest warrant to serve on me for not paying a loan. I advised him that I not only owe this money, but I KNEW he was the same man who had claimed to be somebody else the week before.  I told him I'd already checked them out and I knew they were scam artists.

He unleashed on me and screamed "F*ck you!" at me!  He began screaming at me, threating to send "them" to my home to rape me - then he told me EXACTLY where I live, rattled off my full social security number, my date of birth, my place of employment, and said a "group of men" would be coming to home - named the street address - where they would carry out a gang rape on me...then my family would be murdered!

The F.B.I. has been advised of this and they are investigating.  

These b*****ds need to be put away.  They are low class scum.

I was called from the same number they did it to me last year and now trying to get money out of me again.

Called my work, asking my attorney to call. Left no reference number or anything regarding this information

"david" called and said i had a $400 loan from quick cash advance and if i did not pay the settlement that i will be sued for over 5k and told me to purchase a green dot card money pak to pay them i asked for a copy of the loan info and he said once you pay we will provide it he has a thick accent cant really understand him my lawyer said to tell him to stfu and call him instead but refuses only says i will be served by my courthouse and possibly arrested..........scam scam scam these guys from the middle east go through all this trouble to come here and yet try to screw the hard workin american's up i tried looking up the loan company and "law firm" he works for and cannot find anything i advise noone get a loan online ever!!!!! nor get one of those "prepaid" debit cards either because apparently what this guy says is what i did which i never have!!!!! go home scammers!!!!

I just got a phone call from "Melvin" at 201-565-0808 who told me I was about to be arrested for bank fraud.  I promptly looked up the number, while he was talking, and discovered he was a scam. I then informed him that he was a scam and that I was contacting the FBI.  He hung up and has not called back.  What idiots!

It's a scam. They will stop calling in a week or so. Just ignore them.

I keep getting the same thing...they call from area code 301...but want me to call back area code 201...they have been calling for a couple of months...Says his name is Eddie Parker....sounds like he's talking into a can...with lots of people in the background...Says Maryland...probably using google voice...

Received a call from this number at my place of employment.  My office manager took a message and I called it back. Person said his name was Melvin-had a heavy middle eastern accent -started telling me I was going to be arrested when I asked him to send me the paper work explaining what he was talking about he said he could not send it to me only my attorney,  he then proceeded to read me my rights like I was being arrested.  I told him not to call my work and he said he would call every hour.  I hung up on him.  He called back 6 more times.  I don't know what this is about is there any one I can call to get this person to stop calling me at my job?

Got a call from indian accent "Jason" - If I don't call him back I will suffer law enforcement coming to my place of business and arresting me.

Telephone call from Samantha stating to call her back and if I did call back I would have trouble. The caller ID # that came up was for 206-397-1126.  I called back and spoke with a Chander Paul?  And explained it was a hoax, that I had been getting calls for more than a year.   These calls started becasue I filled out a small loan application because I needed money to cover a co-payment for a surgery I needed.

I received a call from this number from some one named Rachel today, is the same message some one named Jeff left me a month ago. They are treatening and very upsetting calls. I hate to come home from work and listen to them. how can I make them stop? they seem to pass on information to each other, I already told the Jeff person to stop calling and now there is another one... I will never give out any information over the Internet ever!

Consumers across the country report that they're getting telephone calls from people trying to collect on loans the consumers never received or on loans they did receive but for amounts they do not owe. Others are receiving calls from people seeking to recover on loans consumers received but where the creditors never authorized the callers to collect for them. So what's the story?

The Federal Trade Commission (FTC), the nation's consumer protection agency, is warning consumers to be on the alert for scam artists posing as debt collectors. It may be hard to tell the difference between a legitimate debt collector and a fake one. Sometimes a fake collector may even have some of your personal information, like a bank account number. A caller may be a fake debt collector if he:

is seeking payment on a debt for a loan you do not recognize;
refuses to give you a mailing address or phone number;
asks you for personal financial or sensitive information; or
exerts high pressure to try to scare you into paying, such as threatening to have you arrested or to report you to a law enforcement agency.

If you think that a caller may be a fake debt collector:
Ask the caller for his name, company, street address, and telephone number. Tell the caller that you refuse to discuss any debt until you get a written "validation notice." The notice must include the amount of the debt, the name of the creditor you owe, and your rights under the federal Fair Debt Collection Practices Act.
If a caller refuses to give you all of this information, do not pay! Paying a fake debt collector will not always make them go away. They may make up another debt to try to get more money from you.

Stop speaking with the caller. If you have the caller's address, send a letter demanding that the caller stop contacting you, and keep a copy for your files. By law, real debt collectors must stop calling you if you ask them to in writing.

Do not give the caller personal financial or other sensitive information. Never give out or confirm personal financial or other sensitive information like your bank account, credit card, or Social Security number unless you know whom you're dealing with. Scam artists, like fake debt collectors, can use your information to commit identity theft ? charging your existing credit cards, opening new credit card, checking, or savings accounts, writing fraudulent checks, or taking out loans in your name.

Contact your creditor. If the debt is legitimate ? but you think the collector may not be ? contact your creditor about the calls. Share the information you have about the suspicious calls and find out who, if anyone, the creditor has authorized to collect the debt.

Report the call. Contact the FTC and your state Attorney General's office with information about suspicious callers. Many states have their own debt collection laws in addition to the federal FDCPA. Your Attorney General's office can help you determine your rights under your state's law.>

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt076.shtm

they are calling me at work and home. not giving out my information and causing problems at work