Illegal PayDay syndicate in New York busted
There’s an interesting and horrible New York Time story by Jessica Silver-Greenberg about a PayDay loan syndicate being run out of New York State. The syndicate consists of twelve companies owned by a single dude, Carey Vaughn Brown, with help from a corrupt lawyer and another corrupt COO. Manhattan District Attorneys are charging him and his helpers with usury under New York law.
The complexity of the operation was deliberate and intended to obscure the chain of events that would start with a New Yorker online looking for quick cash online and end with a predatory loan. They’d interface with a company called MyCashNow.com, which would immediately pass their application on to a bunch of other companies in different states or overseas.
Important context: in New York, the usury law caps interest rates at 25 percent annually, and these PayDay operations were charging between 350 and 650 percent annually. Also key, the usury laws apply to where the borrower is, not where the lender is, so even though some of the companies were located (at least on paper) in the West Indies, they were still breaking the law.
They don’t know exactly how big the operation was in New York, but one clue is that in 2012, one of the twelve companies had $50 million in proceeds from New York.
Here’s my question: how did MyCashNow.com advertise? Did it use Google ads, or Facebook ads, or something else, and if so, what were the attributes of the desperate New Yorkers that it looked for to do its predatory work?
One side of this is that vulnerable people were somehow targeted. The other side is that well-off people were not, which meant they didn’t see ads like this, which makes it harder for people like the Manhattan District Attorney to even know about shady operations like this.