This week, it was announced that 61-year-old Adrian Rubin of Jenkintown, Pennsylvania had been sentenced to 37 months imprisonment and three years of supervised release. The defendant previously admitted to collecting unlawful debt from payday loans and helping his sons, Blake and Chase, carry out a multi-million-dollar telemarketing scam. Adrian Rubin pleaded guilty to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act, one count of conspiracy and two counts of mail fraud.
The RICO charge stemmed from Rubin’s participation in a conspiracy to obtain debt from “payday loans” that had annual interest rates exceeding 780 percent. These types of loans are illegal in Pennsylvania and many other states. Rubin admitted that in 2012, he collected at least $2,000,000 in payday loan debt. Rubin’s RICO co-conspirators included Charles M. Hallinan and Wheeler K. Neff. Hallinan was referred to as the “godfather of payday lending”.
Rubin admitted to conspiring with the others to hide his payday lending behind a California-based Indian tribe. Neff and Hallinan were both convicted by a federal jury last November. Hallinan was sentenced to 14 years imprisonment. Neff was sentenced to eight years imprisonment. Further details have been made available here.