PHILADELPHIA – You.S. Attorneys William Meters. McSwain announced you to Charles Hallinan, 77, off Villanova, Pennsylvania, are sentenced today to 168 days from inside the federal jail and you may ordered to expend a great $dos.5 mil great to the a plan to get multiple of huge amount of money within the illegal obligations taken from higher-attract financing. For the , a federal jury convicted Hallinan of the many 17 matters out of criminal conduct the us government energized within the superseding indictment: a couple of matters out of conspiracy to help you violate the new Racketeer Swayed and you can Corrupt Company Operate (“RICO”); one to number out of conspiracy so you can commit send swindle, cable swindle, and money laundering; two counts out of post ripoff and you may assisting and you may abetting; about three matters off wire con and you may aiding and abetting; and you will nine matters regarding internationally currency laundering and you may helping and you can abetting.
Called “the fresh new Godfather regarding pay-day lending” because of the mass media during the their demo, Hallinan had, work, and you may financed businesses that granted small-amount, fixed-fee fund and you may compiled costs on these loans over $690 million. Hallinan generated his unlawful chance from the billing fixed charges and you can high interest levels much over that was enabled less than states’ usury legislation.
This new financing was in fact identified in the business given that “payday loans” as borrowers often got him or her off to cover costs right after which paid off the principal, as well as fees and you may interest, through its next paychecks or any other constant income, such as personal coverage payments
“Charles Hallinan, an enhanced, extremely knowledgeable entrepreneur, try nothing more than financing shark whoever whole enterprize model is built on trapping their sufferers within the an eternal loans course,” told you U.S.