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

SO HOW DO YOU SUE OVER THE PHONE ALLEGING I HAVE A OUTSTANDING PAYDAY LOAN I DIDN'T APPLY FOR.

DONT SEND THEM A DIME!!!!!!!!

CALLS UP TO 9 TIMES A DAY CLAIMS THEY ARE A LAW FIRM AND MY SOCIAL SECURITY NUMBER AND I ARE UNDER INVESTIGATION FOR A PAYDAY LOAN I NEVER HAD HAS GIVEN ME 3 DIFFERENT NAMES (AMERICAN) AS YOU CAN CLEARLY TELL THEY ARE FOREIGN. I HAVE BEEN TOLD DO NOT ANSWER THE PHONE AND JUST LET THEM CALL. EVENTUALLY THEY WILL GET TIRED AND QUIT. DONT FALL FOR THEIR SCAM!!!!!!!!!!!!!!! WHEN OR IF THEY DO CATCH THEM I HAVE ALSO MESSAGES SAVED ON MY PHONE I CAN AND WILL USE AGAINST THEM TO GET THEM CONVICTED!!!!!!!!!!!!

These people will not stop calling me, it is a scam and I wish I could start sending these numbers to someone that would investigate these poeople and make them stop and pay for the harrassment

This man with an Indian axent keeps calling me and ask for my attorney phone number. That I owe money to a pay day loan and demand me to pay or he was coming to put a lawsuit against me for 6,000.00 dollars or I can western union 691.00 today . If I didn't comply there going to send a deputy officer to my house to issue me a bench warrant. Three different people gave me three different western union information and they all have the same India accent . There bull s****ers

Just tried finding the number for USCashLoans and the BBB site popped up saying that there is several complaints, and that they are no longer in business.  So if you get called from this number, and they say USCashLoans is suing you....they are full of BS!!!  Don't fall for it.  The phone number is not even one you can call back.

I just received the same exact call Jodi.  And I'm calling USCashLoans right now to complain.  I NEVER got a loan from them.

I just received the same phone call.  The first thing they asked for was my attorney's number.  I looked up Hopkin's Law firm and neither of the addresses match the one they gave me.  They said I took out a payday loan with USCashLoan, but I NEVER DID.  Said they wanted $3000 or they would be contacting the authorities.  Gave me a case # which I looked up, and it is not valid within my state.  They knew where I worked, had the last 4 of my SSN, and what bank I went through.  I had gone online recently and applied for some payday loans, but ended up never getting one.  So beware what website you are going on.  The only thing I can think of, is that they are hacking one of the loan places and using the information you provide to use against you.  I am contacting USCashLoan to let them know about the call.  Now I am probably going to have to get my number changed because there is no way to track who these people are.  They could be calling from India and using a Austin TX number for all I know.  Last thing I need right now.

I RECEIVED A CALL FROM 206-237-0041 AND MAN WITH A INDIAN VOICE SAYING HE IS A POLICE OFFICE BROWN, HE SAYS HE IS CALLING ABOUT A PAYDAY LOAN THAT I DON'T HAVE AND NEVER HAD, HOW CAN I STOP THESE CALLS.

THANK YOU

Calling my phone talking bout I have loans that I never paid back to cash advance and that they have a law suit against me but once I told them I was a cop which I am they hung up the phone they being calling for two days

Called my work three times just now - wants to talk to my supervisor. We have reported them to the FBI - I can not believe people fall for this.  DO NOT GIVEN THEM ANY MONEY OR INFO - THIS IS A SCAM!!!!!

I received a call this morning from a foreign person saying that I had a lawsuit against me for an unpaid loan that I never took out.  They had some of my information but said they needed my lawyers name and number for the case and I have no idea what they were talking about.  He ended up getting mad and saying he was going to call the police department and the credit bureau.  I asked what company is sueing me and he said US cash loans which I have never done business with!

Called  my job gave name John Smith. Said they wanted me to call them regarding a legal matter. This has escalated from phonje messages.  I've alerted my employers and they have suggested that I just not call back.  That was my plan.

Received a call from this # when my phone was turned off so it went to voicemail.  Could hardly understand what the person was saying except for the phone # to call him back and some veiled threats of calling my work & creating trouble for me there.  Having had odd phone calls like this before, I called the number back and told the guy that this was a bullsh*t call, to eff himself and never call me again.  I KNOW this is a scam of some sort like those places that call you trying to get money out of you for an unpaid bill, maybe even a payday/online loan that was never taken out.  The best thing to do is to call the # back and call bullsh*t on them and NEVER UNDER ANY CIRCUMSTANCES GIVE THEM ANY MONEY!

If they call again just ask for the officers badge number and what department he is out of because you are investigating the situation and they won't bother you anymore.  Make sure to inform them that impersonatingan officer is a federal offense.  It should help.  I believe my number is now blocked because if I try calling them it goes directly to voice mail now.

Received call at 6:51am and a man with Indian accent, his name is Officer Peter Brown stated that this call is intended and says my name and that I should call or my attorney of record should call. This matter has great urgency. And goes on to say that if I ignore his call or my attorney ignores his call that I will be sorry. Provides the above number and states that I can reach the lead Attorney on the case.  He also phoned my work. These calls have been coming like this for over a year now.

I will not be returning their calls. It has been a scam to get money on a payday loan that I do not owe on. When I have called back they are very rude and hang up.  If you argue with them about not owing the bill, they hang up and call again later as if they didn't call before.

Alan walker was the name the guy with the Indian accent gave me. Said I have a lawsuit against my social security #. Wouldn't tell me who he worked for. When I asked who filed it he told me the USA. He then said he needed my employers information so he could inform my employer of the law suit. Just a scam to get your info

Received call from this number, foreign accent named Kevin, I mean really, come on now, any way, threatened to be arrested and had legal pending action against me! You don't threaten people like that. Any way, I have been job searching online and when I do these people start calling. Beware! Big ole SCAM!!!!!!!

I have recieved several phone calls from the same number saying the caller was mark white (which sounded foreign and could not understand a thing he was saying ) except he was from the Hopkins Law Firm. Which when I called back was another foreigner claiming his name was Michael the supervisor. At that time gave me wrong social security number and had my address totally wrong. They were caught in several lies by myself do not give them any personal information. REPORT THEM

This employee Austin has repeatedly call my place of employment tying up all my phone lines. we have repeatedly told him that she will call him back when she is available. He insist on calling back to back for the past 2 hours.he then started to call private and unavailable so that we didnt know it was him.

I ALSO RECIEVED A PHONE CALL FROMM THIS NUMBER TODAY PLUS CALLED MY JOB THIS IS RIDICULOUS THE PERSON SAID HIS NAME WAS JAMES OLSON  BUT WHEN I TRIED TO CALL BACK THE NUMBER WAS DISCONNECTED