A major player in a bogus debt collection scheme is going to serve time in federal prison (WNY News Now).
BUFFALO, N.Y. — Joseph Ciffa, 56, of Tonawanda, NY, pleaded guilty to conspiracy to conduct wire fraud and filing a false tax return and was sentenced to 37 months in prison by U.S. District Judge Richard J. Arcara.
Ten Years of Fraudulent ActivitiesCiffa’s illicit debt collecting actions started in 2013 and continued for years. He oversaw an illegal organization that had its headquarters spread throughout several Western New York sites, including Grand Island, Kenmore, and Niagara Falls, starting in 2015. Under Ciffa’s leadership, staff members used forceful and dishonest methods to collect and overcollect debts, including threatening criminal charges or posing as lawyers to pressure victims into making payments.
Over $3 million was obtained from gullible victims by the fraud between January 2015 and December 2016.
Uncovering Tax and Benefit FraudCiffa filed a bogus tax return for 2015, underreporting income and avoiding almost $15,000 in taxes, in addition to his dishonest debt collection tactics. He allegedly misrepresented his income on a Medicaid benefits application in 2016 to obtain benefits for himself and his kids, according to additional research.
Coordination of the InvestigationHomeland Security Investigations (HSI), the IRS Criminal Investigation Division, the U.S. Postal Inspection Service, and the New York State Office of Inspector General were among the authorities that conducted a thorough investigation before the punishment. Their combined efforts revealed Ciffa’s financial wrongdoings and extensive plan.