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The owner of a fraudulent debt collection company that cost its clients and debtors more than $4 million in losses was sentenced to six years in prison, the U.S. Attorney’s Office Eastern District of California announced in a news release Tuesday.
Charles V. Stanley Jr., 65, of Agua Dulce, California, was arrested June 16, 2017. A Sacramento federal grand jury returned a 15-count indictment for conspiracy to commit bank fraud, mail fraud and wire fraud, as well as separate counts of bank fraud, mail fraud and wire fraud, a previous news release from the U.S. Attorney’s Office said.
Stanley owned and operated Creditor Specialty Service, Inc., a debt collection company that worked with financial institutions in California, Nevada and Oregon, including credit unions in Sacramento, Folsom and Bakersfield, the releases said.
Under Stanley’s guidance, employees collected money from debtors but would report less money than the amount they actually collected, the U.S. Attorney’s Office said. They would also continue to collect money from debtors even after the institution that hired CSS ended their contract, according to the U.S. Attorney’s Office.
The company filed for bankruptcy in 2016; individuals, businesses and organizations had made more than $20 million in monetary claims against them, the Credit Union Times reported in 2018.
Stanley was out on bail following his arrest but was placed back into custody Feb. 14, 2018, after it was determined he may have committed additional crimes while on release, according to court documents. He pleaded guilty while in custody, court documents said.
The case was investigated by the FBI and IRS Criminal Investigation.