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.

This f****ng b***s*** caller raymond scott 8883264802 calling me from magic jack with an indian accent took away  $200 from me today..... but no issue u all b***s*** caller i have registered ur number with the FBI and they are going to catch u all scammers.  As ur IP address and Phone location has been traced.... and the Indian athorities are going to catch hold u to f*** ur a**.... A** hole.....

To all my US people beware of these scammers  and give them a b***s***.... these Indians are begger make big a***ole in them and make them suck our Hard c***.....

I GOT A CALL FROM A SHAWN MILLER WITH AN INDIA ACCENT REGARDING A PAYDAY LOAN THAT I DONT DEAL WITH.

A gentleman with an Indian accent tried to tell me that I have not had my phone number for the past 2 years and I was covering for the guy that they were calling for.  I said that I was going to call the cops and they said go ahead and do a 3 way call with them.

Daniel/Ricky smith keeps calling my employer and has been threatening to arrest me if i dont pay $900.00, theyve been calling constantly are are very rude and annoying

I just got a call at work also form a guy named Daniel Schmidt from 888-326-4802 who claimed he was an investigator and said I have commited crimes and that I am going to prison unless I pay 350.00 which I supposedly borrowed from Cash advance. What a crock of Sh**! I wish thes scam artists could be caught!

They keep calling me at work and I am tired of it. I couldn't even understand what they were saying.

This people calling saying I took a loan, of $300, which I never did, they said if I don't pay it today through walmart it will cost me about $3000.  When I asked for their company name, they wouldn't give it to me.
you are the scammed people.

They have called me and my sister (about me). Sandra Moore has a very mid-western accent.
I do not know what they want. I and reporting them to the FTC and the BBB.

They said that there were going to sue me for fraud and then they explained that they were going to keep calling my job unless I pay them, they didn't tell me on behalf of who, what, when where they just said that they wanted money.  They called my job today over 40 times and my boss got on the phone which was so terrible for me and he asked who it could possibly be and i had to run all of my past due creditors out to him because of one phone call.

I keep getting this same phone number. They will not leave me alone at work or at home. I will not answer them. I told them the police is after them if they will not stop calling me.

Received two calls from a Howard Jones over the last week.  The 1st time I called back and got his supposed boss Nash.  Both had strong Middle Eastern accents.  Nash told me that I had taken out a payday loan which I never have.  I told him that I was contact the FTC and the Atty Generals office to get this stopped.  He said that he would see me in court.  When this so called Howard Jones called again today and I tried calling the # back, it just gave a quick beep, beep and cut off.

Forgot this.
I recorded the conversation on my husbands phone. At first he said he was Joseph Garner and was a lawyer from South Carolina. When I was talking to him about where to send it Western Union and he said Robert Diggs at Kileen, TX, I asked why am I sending it there instead of South Carolina he said no no no that is where I lived when I went thru the academy to get my badge (guess now he's a cop also). Then I said now let me make sure, your ne is Robert Diggs right? He said yes ma'am Robert Diggs........IDIOT!!!!!

Got a call from Joseph Garner saying it was a legal matter and was gonna issue a warrant for my arrest if I didn't pay them 800.00. They wanted me to wire the money to a Robert Davis or Robert Diggs got all the information and called my dad and brother who r both police officers. They called them identified theirselves and these people were not happy kept hanging up said oh **** it's a cop. We called them 20x literally the result was the same every time. It was funny to turn the table on them. By the way even if u did owe somebody they cannot have u arrested they would have to take it up in court.

They are calling one of my employee's at least 100 times, cursing and yelling at us.  I requested they fax over the debt and we will take care of it, and he told me no, that I had to give my cc card and that's the only way they would stop.  Well, that didn't happen, and they are jamming all of our phone lines.

They claim she took out a loan and won't pay it, so they want her to go to Western Union and make a payment immediately or they will keep calling.  We have tracked 10 of their phone numbers, and will try to block them in our system.

I guess they have nothing better to do.  Who would fall for this scam?

A guy named Daniel was calling and harassing me at work several times a day from another 1-800 number until I reported him to our campus security officer.  The officer called the 1-800 number and asked for Daniel.  He was told that "Daniel died last night" and that they do not have me on file.  Later in the conversation, the predator changed his story and told the officer for me to contact him so he can provide me with the information he claimed he had about taking out a payday loan with USA Cash Advance.  I have never heard of this company before.  The officer told him that if they contine to call me at work I would be pressing charges against them and they hung up on the officer.  

Austin White is now calling me from 888-326-4802.  He has the same Indian accent as the other ones.  Tired of his harassing voice mails to me, I called him and told him that I dared him to sue me and that if he continues to harass me at work (he's been calling my work numer too) that I was going to press charges against him.  He then told me to shut my f****** mouth and hung-up on me.

Please be aware that two days ago I received another call from a female with an Indian accent telling me that I was just awared $8,000. in grant money.  Once again, I told her to stop harassing me or I will press charges and I hung-up on her.

they are harresing me to and trying to say the are the BCI with african accents they are crooks

Tell him you know this is a scam and ask them to stop calling you.  If you mention anything about knowing it is a scam they usually hang up and disappear.  You might get more calls from a different number in a few weeks, but if you start asking them questions, they realize you are "on to them" and they hang up.  Also contact the FTC and report the number there is a website where you can do that.  Sorry I don't have the link.  Good luck!

I received a call from this number yesterday and today.  They also called my boyfriend and another friend of mine.  I contacted my local police as well as filed a report with the FTC.  I tried to call back but got a voicemail.  I called a second time and spoke with someone who tried to tell me they were the Senior Investigator for the Attorney's office.  No business name - just Attorney's office.  I told them I knew this was a scam and already notified the police as well as reporting them to the FBI and FTC.  He hung up.  He never mentioned a dollar amount owed to me in the voicemail or to my friends.  I have received a few of these calls in the last few weeks, I dont' think from the same guy, but they all have strong Indian accents.  Usually they just hang up when you begin asking them questions.  In one call I was told the police would be coming to my home the next day at 10:30 am.  For an alleged debt?  You cannot be sued in criminal court for consumer debt and the police will not get involved.  I found the calls to be a nuisance, but now that they are calling friends I am concerned.  I called my bank and notified them as well just to be safe.  Make sure you report these guys.  I would hate to think that some gullible person would give them money.

I been getting calls from this number to. They have called my work a lot. They usually call me 20 to 30 times if I don't pick up I'm going to block there number but if they keep calling my work what should I do I need some advice the guys same that keeps calling me is named Austin white.

Whistle? Air horn? Screaming smoke alarm?

The FBI says they may have gotten your personal info from a payday loan application you may have filled out in the past http://www.fbi.gov/news/pressrel/press-releases/paydayloanscam_120710

This number keeps calling me saying I owe money for  a payday loan but somehow the have my ss# bank name work number when they call my work I called back and when they started talking like they were from india i said i couldnt understand them if they could slow down and they told me to shut my mouth and hung up I called back and they kept not answering and hanging up.  How did they get all my information?  What can I do about it ?

these people called 9 times yesterday and 8  today . They say i did not pay a payday loan back I never had a payday loan. They are very abusive and threatening.

They hav also call me over and over on my cell phone about a loan that I have taken out which I have no knowledge of and call me a lie when I said that I didn't have a loan out.

I answered a call from this number the person on the other side of the phone was definitely Middle Eastern and very hard to understand. He said his name was Larry Brown I think. I was first asked if they were speaking to me. When i said yes they then proceeded to say that they needed to tell me something about my wife. it was basically like let me tell you a secret. Come on what kind of legitimate company does this. He said that she owed them 300 dollars and that if i didn?t pay him the 300 today they were going to take us to court for 3000 dollars. I told him that i knew it was a scam and to not call again. I then hung up and he proceeded to call three more time each time i told him the same thing. On the next call i didn?t answer. I have not received a call since. This company is definitely out to steal your money don?t believe a thing they say.

Same exact story here except he said his name is Daniel Smith. They wont stop calling and threating us.

They keep calling my job and won't stop. I filed a complaint through the Federal Trade Commision hoping it will stop.

I just got a call at my job from a guy named Ricky Smith saying I owe them money. The number is 888-326-4802, guy sounds like he's from India. He not only harassed me, but he harassed my manager and accused him of not being my manager. I filed a complaint with the Federal Trade Commision. Hopefully that will stop the phone calls.

https://www.ftccomplaintassistant.gov/

calling my work and threatening to get me fired saying i owe them money.