PITTSBURGH, PA – A trio of con artists have been permanently barred from the debt collection racket following a Federal Trade Commission crackdown, but the victory feels hollow after a recent court setback. Richard Diorio Jr., the alleged mastermind behind International Credit Recovery, Inc. (ICR), along with manager Cynthia Powell, ran a sophisticated scheme targeting the very organizations meant to *protect* our communities – businesses, schools, fire departments, and non-profits.
The FTC’s investigation, launched in May 2020, revealed a disturbing pattern: ICR was billing these organizations for books and newsletters they *never* requested. This wasn’t a simple billing error; it was a calculated operation to bleed funds from already stretched budgets. When these organizations rightfully refused to pay for goods they didn’t order, the defendants allegedly resorted to intimidation and threats, turning up the heat on vulnerable institutions.
Sources close to the investigation say Diorio Jr. and Powell operated with brazen disregard for the law, preying on the assumption that these organizations would simply pay the invoices to avoid legal hassle. The scheme wasn’t about collecting legitimate debts; it was about creating them. The FTC alleges ICR built a house of cards on phantom invoices and aggressive tactics.
Court Ruling Complicates Victory
While the FTC secured a permanent ban for Diorio Jr. and Powell in April 2023, effectively shutting down their illegal operation, a recent district court ruling has thrown a wrench into the agency’s efforts. In March 2024, the court sided *against* the FTC on its primary claims, and in June 2024, denied a motion to reconsider. This means despite the ban, the defendants may not face further penalties, leaving many to question the effectiveness of the legal outcome.
“These individuals exploited the good faith of organizations dedicated to public service,” stated an FTC spokesperson, speaking on background. “The court’s decision is disappointing, but we remain committed to protecting consumers and businesses from fraudulent debt collection practices.”
Key Facts:
- Defendants: Richard Diorio Jr., Cynthia Powell, International Credit Recovery, Inc. (ICR)
- Scheme: Billing organizations for unordered books and newsletters, then threatening them for non-payment.
- Targets: Businesses, schools, fire departments, police departments, and non-profit organizations.
- FTC Action: Secured a permanent ban from the debt collection industry in April 2023.
- Court Setback: District court ruled against the FTC on its claims in March 2024, denying a motion to alter the judgment in June 2024.
- Location: Pennsylvania-based operation with ties to New York.
The case serves as a stark reminder of the lengths some will go to for a quick buck, and the challenges faced by law enforcement in bringing these criminals to justice. While Diorio Jr. and Powell are currently sidelined, investigators are watching closely to ensure they don’t resurface under another guise.
Source: FTC.gov
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