A Oakleigh Park businessman has been accused in a Nevada court writ of scamming American citizens out of “substantial” sums of money from a call centre in Whetstone.
The United States authorities claimed last Wednesday that companies run by Aaron Gershfield and two co-defendants used abusive and aggressive tactics to take hundreds of dollars from Americans who had signed up to so-called “payday” loans.
Mr Gershfield, 50, of Oakleigh Park North, faces a fine and injunctions for his alleged involvement as a former director of Cash Today Ltd, based in Northway Court, Whetstone, and a network of companies registered in Nevada, USA.
According to papers filed by the state Attorney General to the US District Court in Reno, Nevada, Cash Today Ltd offered loans of up to $500 without credit checks or proof of income, to be repaid along with a fee of between $35 and $80 by their next payday.
But Cash Today Ltd employees then used their access to borrowers’ bank accounts to withdraw “substantial sums of money” in connection with the loans, the US authorities claim.
Borrowers were forced into closing their accounts, but Cash Today Ltd would then begin a “campaign of deceptive and abusive collections tactics,” calling borrowers at home and at work from the company offices in High Street, Whetstone, to get more money, it is claimed.
“The defendants also intimidate consumers, falsely representing that the defendants can and will have them arrested or imprisoned, or falsely representing that the defendants will take formal action against them such as filing a law suit, seizing or attaching their property, or garnishing their wages,” claim the authorities.
“In fact, in many instances, defendants cannot take such legal action and, in any event, have no intention of doing so.”
It is alleged that Mr Gershfield “formulated, directed, controlled, or participated in the acts and practices of Cash Today Ltd.”
The writ states consumers across the US suffered “substantial monetary loss as a result of the defendants’ unlawful acts or practices”.
Ivor Gershfield, who was also a director of Cash Today Ltd, and Jim Harris, a director of five of the subsidiary companies, are also accused, along with the network of ten companies involved.
They are accused of threatening consumers, breaching lending laws by failing to disclose the terms of the loans and selling loans without licenses.
The US authorities hope to secure refunds for the consumers allegedly scammed.
Yesterday afternoon no-one was at Mr Gershfield’s Oakleigh Park North address, which appeared to be empty and dilapidated.
A receptionist at Cash Today Ltd’s offices in Northway House, in High Road, said Mr Gershfield was not available to speak to the Times Series.
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