The Federal Trade Commission has successfully taken down another accused Pay Day Scammer, Jason A. Kotzker, who is also an attorney. He had been charged by the feds in this case for selling personal information from people who thought they were applying for payday loans online and sold it to a scam that tapped consumers’ bank accounts and credit cards without consent.
Alleged scammer Kotzker took the information received online and, according to the FTC, instead of passing it along to legitimate payday lenders, sold it to companies like Ideal Financial Solutions Inc. The financial solutions company then allegedly raided consumer accounts for $7.1 million without consent, effectively stealing it from thousands of consumers bank accounsts.
The order against Kotzker bars him from selling or disclosing personal information of consumers ever. Additionally, he cannot misrepresent financial products or services going forward. A $7.1 million judgment has been suspended upon payment of $45,000, which represents virtually all of Kotzker’s assets as he claimed he was broke. If he lied to the court, he will be forced to pay the full amount.
The FTC voted 3-0 to approve the proposed stipulated final order against Kotzker. The agency entered the order in the U.S. District Court for the District of Nevada on Nov. 3. The order comes after stipulated orders against other defendants in the case that were entered Aug. 13.