Kenmore Man’s Debt Collection Scheme Exposed
A Buffalo man has pleaded guilty to his role in a debt collection scheme that targeted individuals throughout the United States.
Carmelo Collana, 49, of Kenmore, New York, admitted to conspiracy to commit wire fraud, a charge that carries a maximum penalty of 20 years in prison and a $250,000 fine.
The scheme, spearheaded by co-defendant Joseph Ciffa, involved various corporations and bank accounts that processed payments for debt collection agencies operating under different names, including Lakeside Mediations, Lincoln Mediation, and State Filing and Legal Services.
Between January 2014 and February 2017, Collana and others used these agencies to place fraudulent telephone calls to individuals, claiming they were attorneys or making false threats of arrest. The victims were directed to make payments into bank accounts owned by Collana, who then remitted the funds to the owners of the debt collection shops in return for a percentage fee and/or salary.
In addition to collecting payments, Collana maintained an account with TLO, an online commercial database, which he used to gather personal information about individuals. This information was provided to the employees of the debt collection agencies to assist in contacting and collecting from the individuals.
Between February 2015 and December 2016, approximately $788,961 was deposited into Collana’s accounts from fraudulent collection activities.
Collana is scheduled to be sentenced on June 13, 2019, at 12:30 p.m. before U.S. District Judge Richard J. Arcara.
Collana was charged along with five other defendants, with three already convicted. Joseph Ciffa, the co-defendant, is awaiting sentencing.
The investigation was conducted by Homeland Security Investigations, the Internal Revenue Service, Criminal Investigation Division, and the U.S. Postal Inspection Service.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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