Fake Debt Collector Scams Thousands, Pleads Guilty
Dealing with an endless barrage of debt collection calls is one thing, but when a debt collector demands that you pay a debt, threatening legal action even though you don’t recall owing any debt to begin with? That’s something else entirely.
Unfortunately, this was the reality for nearly 600,000 Americans when Kirit Patel’s company, Broadway Global Master, posed as a debt collection agency and made over 2.7 million phone calls between 2010 and 2012, fraudulently collecting more than $5.2 million from unsuspecting consumers.
Operating from call center in India, Patel and Broadway Global Master had agents calling consumers to collect on debts that – according to prosecutors and the Federal Trade Commission (FTC) – didn’t exist in the first place.
It wasn’t until the FTC caught on to Patel’s shady debt collection practices that it put a halt to his unlawful activity, freezing his operation and seizing the company’s assets, so it could further its investigation.
While Patel has plead guilty to four of the counts of mail and wire fraud held against him, he has been charged with 21 total counts of mail fraud and wire fraud.
Patel and Broadway Global Master were in violation of the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from harassing consumers and posing as government officials – including police officers and representatives from government agencies – which were standard collection tactics at Broadway Global Master.
On top of it all, back-to-back calls and accompanying threats were all too common. It was reported that one consumer received a threat that her children would be taken from her if she did not pay what the debt collector claimed she owed.
Ultimately, the debts under collection by Broadway Global Master were fake, and the whole operation was determined to be a scam. While a guilty plea may lighten his sentence, Patel could face as much as a $250,000 fine and 20 years in prison for his crimes.
While there are plenty of legitimate debt collection agencies, all debt collectors are required by law to respect your FDCPA rights. If you receive harassing, threatening, or excessive phone calls from any person or agency attempting to collect on a debt, it’s important to have your case reviewed by one of our consumer law attorneys. You have explicit rights under the FDCPA, and you may be entitled to compensation if those rights have been violated.
I got a phone call today while at work, which my job isn’t allowed to get calls like that. I didn’t know who it was which I called them back after hearing a voice recorded message. After calling them back/ I was told that I owed on a loan I obtained online of the amount of $300.00 and because of fee’s it’s now $548.25, now they said this was back in 6/11/13 that I was suppose to have taken this loan out online. They said it was sent to my bank account, which is all a lie. They were even able to tell me what bank I had, my last 4 digits of my social security number. I have proof from my bank, no signs of any such and I don’t remember getting a loan, she also said I made two payments of $50.00 and I didn’t pay the rest. It’s all a lie!! She told me that I was going to have to go to civil court and they are getting ready to get the papers set up to present to my job and garnish my wages. So if they call my job again what shall I do I asked them not to call it because they don’t allow that and she said she will make note of it. Prior to this I got a voice massage of them telling me through a robot call that they are going to seek my place of employment and my residence. They never said who they were until I called them personally. I find it threatning and I hope they don’t call my job back. I could get in trouble if they do.
Comment by Flourene Askew on July 20th, 2016 at 8:16 pm
Hello Flourene,
Thanks for your comment and detailed story. Someone from our office will be in touch with you to discuss.
Comment by K&S on July 21st, 2016 at 8:08 am