

United States: 

CFPB Pursues Declare Against Former Financial debt Selection Enterprise Executive And His Relatives For Allegedly Seeking To Fraudulently Transfer Assets To Undermine An Previously Consent Decree


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Recently, the CFPB and New York Lawyer Basic submitted a Complaint in opposition to Douglas MacKinnon and
associates of his immediate spouse and children to unwind the allegedly fraudulent
conveyance of MacKinnon’s $1.6 million property designed soon following
he acquired his company methods were the subject of CFPB and NYAG
investigations.
This Grievance follows a 2019 consent decree, in which MacKinnon
was just one of a few defendants who experienced entered a stipulated final
judgment with the CFPB and NYAG. In that motion, the CFPB and NYAG
charged McKinnon and other people with having obtained millions of
dollars’ truly worth of shopper personal debt at a fraction of its worth,
then inflating the debts, and utilizing unlawful strategies – such as,
impersonating regulation enforcement officers, authorities businesses, and
court docket officers – to extract as substantially revenue as achievable from
individuals. The stipulated purchase settling that action needed
MacKinnon and his co-defendants to pay out $60 million – $40 million in
client redress, and a $10 million penalty to the CFPB and a $10
million penalty to NYAG. On the other hand, the consent decree suspended the payment of
these quantities in trade for $10,000 in customer redress and $1 to
the CFPB.
The recently filed Complaint alleges MacKinnon transferred
ownership of his dwelling to his wife and daughter in 2015 in trade
for just $1 shortly soon after finding out of the federal and condition
investigations into his debt collection firms. Soon
thereafter, the Complaint alleges, MacKinnon’s spouse granted a
house loan of $900,000 to MacKinnon’s brother in get to give
the effect that the property was encumbered and not accessible
to pay back any of MacKinnon’s lenders. In the Grievance, the CFPB
and NYAG talk to the courtroom to declare the transfer and subsequent
home finance loan void and order the sale of the assets in get to
satisfy, at the very least partially, MacKinnon’s remarkable personal debt to
the federal and state governments. The CFPB stories that MacKinnon
has not made any payments toward gratifying the judgment against
him considering that the 2019 consent decree, and alleges that neither he nor
his household associates have cooperated in the efforts to attain
appropriate money information and facts.
The CFPB issued a press launch soon after submitting the Grievance in
which Performing CFPB Director Dave Uejio strongly condemned
MacKinnon’s steps and signaled that the CFPB supposed the
Complaint to act as a warning to other fraudsters. Mr. Uejio said
that “Douglas MacKinnon operated a brazen plan, fraudulently
inflating consumers’ debts, and he was similarly brazen in trying
to fraudulently conceal his own property.” He went on to notice
that the Criticism “displays that makes an attempt to defraud the federal
authorities and evade the penalties of breaking the legislation will not
thrive.” The press launch also included NYAG Letitia
James’s remark that she deemed MacKinnon’s carry out to
be a “comprehensive disregard for the authority of the govt
to deliver violators of the legislation to justice.” She also mentioned that
“[n]ot a single dime has been paid to set cash again into the
pockets of New York’s buyers.”
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