Dubbed “the godfather of payday lending” because of the news during their trial, Hallinan owned, operated

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Dubbed “the godfather of payday lending” because of the news during their trial, Hallinan owned, operated

PHILADELPHIA A 77-year-old Main Line guy referred to as the “godfather of payday financing” had been sentenced Friday to 168 months in federal jail and ordered to pay for a $2.5 million fine.

Charles Hallinan, 77, regarding the Villanova portion of Radnor Township, had been jailed regarding the a scheme to get vast sums of bucks in illegal financial obligation acquired from high-interest loans. He additionally had been bought to forfeit significantly more than $64 million gained from their acts that are illegal in addition to a few luxury cars and their Main Line mansion.

The government charged in its superseding indictment: two counts of conspiracy to violate the Racketeer Influenced and Corrupt Organization Act (RICO); one count of conspiracy to commit mail fraud, wire fraud, and money laundering; two counts of mail fraud and aiding and abetting; three counts of wire fraud and aiding and abetting; and nine counts of international money laundering and aiding and abetting in November 2017, a federal jury convicted Hallinan of all 17 counts of criminal conduct.

Hallinan, a previous investment banker, was at the payday financing company from at the very least 1997 to 2013, relating to U.S. Attorney William M. McSwain.

, and financed businesses that issued small-amount, fixed-fee loans and collected debts on these loans more than $690 million. The loans are understood on the market as “payday loans” because borrowers usually remove them to pay for costs and then repay the concept, plus costs and interest, with regards to next paychecks or any other steady earnings, such as for example Social safety re payments. Hallinan made their unlawful fortune by asking fixed costs and interest that is high far more than the thing that was allowed under states’ usury guidelines.

“Charles Hallinan, a classy, very educated entrepreneur, had been nothing but that loan shark whose entire business design ended up being constructed on trapping their victims in a endless financial obligation period,” said McSwain.