Canadian police investigate loan firm Company advertised in Marine Corps Times

[thedrifter]

Issue Date: January 05, 2004

Canadian police investigate loan firm
Company advertised in Marine Corps Times

By Karen Jowers
Times staff writer

Canadian police are investigating whether America First Line Financial Group, which advertised loans for service members in the Military Times newspapers, has committed loan fraud. At least four readers have reported sending money to the company in order to get loans. The loans, however, never materialized, the readers said.
When they called the toll-free number in the ad, representatives for the company said their $5,000 loans were approved, but that they would have to send another $500 to $626 to get their money. Two service members interviewed said they wired their funds to Ontario, Canada.

The advance-fee loan scam is rampant in Canada, police there said. Although they had no complaints on file against the company, they now are investigating, police said. New company names and phone numbers constantly crop up, they said. Although America First Line Financial Group lists an address in Richfield, Minn., there is no phone number listing. Repeated calls to the toll-free phone number listed in the advertisement were not returned.

The chances of the service members getting their money back are slim, said Staff Sgt. Barry Elliott of the Ontario Provincial Police. Elliot is coordinator of a Canadian task force, Phonebusters, set up to fight this sort of crime.

Such companies have been advertising in a number of papers in the United States, he said. In one case reported by the Military Times papers in September, a soldier found a similar company in an advertisement in a base newspaper.

“If anybody is promising you a loan for a fee, it’s a scam,” Elliott said. Advance-fee loans are illegal in the United States and in Canada.

But as in the case with the Military Times ads, customers don’t know a fee or upfront payment is required until they call the number.

Elaine Howard, president and chief executive officer of Army Times Publishing Co., said, “We want our readers to think before they pick up the phone to get a loan. We try to caution people to be sure to ask the right questions. They need to be very, very cautious to weed out the scam artists from the legitimate companies that place ads.”

Howard noted a disclaimer that runs in the section with ads for loans that says the “listings here do not reflect an endorsement of companies, products or services by this newspaper.”

Howard added that if readers discover a company that appears to be trying to extract an illegal advance fee, they should “let us know right away. They should inform us and those ads won’t run in our paper. We don’t tolerate companies that try to rip off the military.”

America First Line Financial Group, advertised “Low Monthly Payments, Low Interest Rate, No Application Fee” in a classified advertisement in the Military Times papers dated Dec. 8, Dec. 15 and Dec. 22.

Elliott also warns those who have sent money to these “loan” companies that the chances are high they will be victims of identity theft. Using information such as bank-account numbers and Social Security numbers, thieves can charge bills to the victim’s accounts and create new charge accounts in their names.

Navy Storekeeper 1st Class Thomas Jordan sent $926.72 to America First Line Financial Group, first wiring $626.72 to the company at an address in Ontario because it required “four loan payments upfront,” he said. Two days later, when he hadn’t received the money, he called and was told he’d have to send another $300 fee. When the money didn’t arrive and he continued to call, he was told the money was on the way. The company has refused to refund his money and is not answering his calls, he said.

At Fort Benning, Ga., Army Staff Sgt. Anthony Barge has tried to reach company officials at America First Line Financial Group on behalf of three of his soldiers who have sent money and gotten no response. Each time he called, he said, “A gentleman told me everybody was in a meeting.” Jordan said he is told the same thing when he calls.

An employee also told a Military Times reporter on two occasions “everyone is in a meeting, but should be out in half an hour.” Repeated messages and pages were not returned.

The victimized sailor, Jordan, reported the company to the Phonebusters toll-free fraud hotline at (888) 495-8501 on Dec. 23 and to the Federal Trade Commission, at www.ftc.gov. Victims can contact Phonebusters at www.phonebusters.com.

Jordan is in the process of closing out his bank account, and he is contacting credit-reporting agencies to flag his accounts for possible identity theft.

Most of these loan operations are run through cell phones, Elliott said. “At any given time, there are 1,000 to 1,500 of these operators across Canada attacking victims in the United States, Britain and elsewhere,” he said. The problem is costing victims millions of dollars. “It’s organized crime in Canada. When we do catch them, the penalties are light. If they get jail time, it’s not much, and they continue to operate from jail,” Elliott said.

A number of arrests are expected after the first of the year, he said.

“It messes Christmas up,” said Jordan, who plans to ask the Navy-Marine Corps Relief Society for assistance.

He’s not alone feeling that way.

“When I was applying for the loan, they called me every day,” said Army Cpl. Melinda Andrews, 23, stationed at Fort Benning. “After I applied and sent in the money [Dec. 11], they said it would be in my account in two to four hours. I call them at least 10 times a day. Nothing,”

“It ruined my Christmas. I had no money for presents, no money to go home,” she said. Her parents paid for her trip home.

http://www.marinecorpstimes.com/stor...ER-2510048.php


Sempers,

Roger

[Doc Crow]

Man we really need to educate these kids better. Except for closing costs and points on a home loan you should never have to pay squat for a loan. This problem is in the drastic rise and we need to make sure these kids are better educated in Boot Camp and in their basic schools for this type of thing. They hear about it in the news all the time but probably 95% never put 1 and 1 together till it is to late because they have never really had to apply for loans etc.

[Kalbo]

Doc Crow,

I agree with you whole heartedly. More education for "real world" problems, like credit cards, preditory lending, etc. It these things that can add extra stress to a Marines life.

Drifter, Good post.

Semper Fi,
Bill "Kalbo" Long

[yellowwing]

With Canadian sentencing guidelines, they'll do 2 years if convicted. If you break into someone's house and rough them up you can expect 4 years if you are caught. This is where I think they should import some Texas justice!

[Doc Crow]

I can remember when they first started requiring Direct Deposit and kids got checking accounts most never had one and ran into a lot of problems. We can educate this young men and women to prevent most of this and make it annual training. we could cover this on inservice type training. Make it something that is required for E-4 and below when they check in