Prairie Village businessman pleads guilty to fraudulent payday loan scheme, tax evasion
A Prairie Village businessman pleaded guilty Thursday to three federal charges for his involvement in two fraud schemes involving false payday loan debt and tax evasion, according to federal authorities.
Joel Tucker, 51, was indicted on 15 federal felony counts, accused of selling fake consumer debt portfolios in 2018. In 2019 a tax evasion charge was added after authorities discovered he had failed to pay millions in tax liabilities while spending exorbitantly on private jets, a Cadillac Escalade and a private club in Vail, Colorado.
He pleaded guilty Thursday to one count of transporting stolen money across state lines, one count of bankruptcy fraud and one count of tax evasion, according to a news release from the U.S. Attorney Office for the Western District of Missouri.
As part of his plea agreement, Tucker must pay more than $8 million in restitution to the Internal Revenue Service and pay an additional $5,000 to the government. He faces up to 20 years in federal prison without parole.
“This well-dressed thief victimized millions of Americans whose personal information was fraudulently sold to debt collectors,” U.S. Attorney Timothy Garrison said in the release. “Some of those victims, in their fear and confusion, actually paid debts they didn’t owe. And by hiding his income and assets then lying about it to federal agents, he victimized every honest citizen who obeys the law and pays their income taxes. His thievery allowed him to enjoy a luxurious lifestyle for a short time, but he won’t be entitled to such luxuries in federal prison.”
According to court records, from 2014 to 2016, Tucker made $7.3 million selling fake payday loan debt portfolios to brokers. When those brokers called the names attached to the portfolios many would pay even though they didn’t owe anything.
During that same period, prosecutors alleged, Tucker had more than $8 million due from his 2007 and 2008 income taxes. He allegedly used none of the $7.3 million to pay that debt but did spend on luxury cars, hotels, private clubs and flights on private charter jets.
Tucker allegedly told an IRS agent in 2016 that he had no income, despite receiving $940,000 in bank accounts he controlled that year.
Adam Steiner, Acting Special Agent in Charge of IRS investigation in the St. Louis FBI Field Office, said in a statement that Tucker’s plea admitted that he had chosen to “sustain a lavish lifestyle” rather than pay his taxes.
Steiner’s office helped investigate the case.
“We are determined at the IRS and Department of Justice to halt tax evasion, and the facts outlined in today’s plea are strong indicators that we can and will find this fraudulent activity,” Steiner said.
This story was originally published July 16, 2020 at 4:23 PM.
