Manhattan District Attorney Cyrus R. Vance, Jr., announced the responsible pleas of CAREY VAUGHN BROWN, 57, in addition to two organizations he operated and managed, CREDIT PAYMENT SERVICES, INC. (“CPS”) and MYCASHNOW, INC. (“MYCASHNOW”), to Criminal Usury in the 1st Degree for participating in a scheme to help make numerous short-term, high-interest loans – referred to as “payday” loans – to Manhattan residents. As part of a plea contract performed might 12, 2016, BROWN has recently forfeited $3 million, and it is limited by the regards to the contract to pay for yet another $6 million in forfeiture to victims. A compensation fund will be set up by the Manhattan District Attorney’s Office’s Asset Forfeiture Unit to compensate verified victims of BROWN’s payday lending scheme under the terms set forth in a forfeiture order. BROWN can also be necessary to perform 250 hours of community solution underneath the plea contract.
“Payday loans victimize those least able to spend the money for excessive and totally impractical regards to those loans, and sometimes lead to a very long time of financial obligation and credit problems when it comes to regrettable borrowers,” stated District Attorney Vance. “Recognizing precisely how harm that is much loans may bring, Bing claimed this week so it will no further permit such adverts on its site. The defendants in this instance have admitted to doing a scheme in order to make usurious loans to New Yorkers. With one of these accountable pleas together with establishment of a payment investment, we now have taken one step toward righting the wrongs brought by some users of this exploitative industry.”