Group Cops Guilty Pleas In Debt Collection Racket; Used Phony Law Enforcement Claims To Strong-Arm $6.7M+ From 1000+ Victims Around The Country

From the Office of the U.S. Attorney (Buffalo, New York):

• U.S. Attorney William J. Hochul, Jr. announced [] that Timothy E. Arent, 38, of Buffalo, New York, pleaded guilty [...] to mail fraud and tax evasion charges. The charges carry a maximum penalty 25 years in prison and a $500,000 fine.

• Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that from October 2006 through October 2009, Arent and his partner, Neil G. Wieczkowski, engaged in a fraudulent debt collection scheme. The two illegally purchased debtor information from two former employees of Capital Management Services, a Buffalo debt collection business, and thereafter used the information to coerce the victims into paying fictitious debt.

• These former employees, Thomas Rice and Andrew Jon Pytlewski, have pleaded guilty to stealing the debtor information and are awaiting sentencing in February 2011. Neil Wieczkowski, meanwhile, pleaded guilty to mail fraud and tax evasion on January 7, 2011 and will be sentenced in April 2011.

• Regarding defendant Arent, the Government’s evidence revealed that Arent claimed to be a law enforcement officer with the ability to arrest the victims if they did not immediately make a substantial payment on the alleged debt owed.

• During a three year period, Arent and Wieczkowski received approximately $6.8 million in checks written by over 1,000 victims from across the country. The scheme netted Arent almost $5.7 million which he used to pay the mortgage and remodeling costs on a $500,000 West Ferry mansion, pay the salaries of co-defendant Wieczkowski, a full time handy man, and a full time housekeeper, and to purchase such luxury items as antiques, furniture, jewelry, furs, artwork, high end vehicles, vacations and an in-ground pool.

For the U.S Attorney press release, see Fourth Person Convicted In Illegal Debt Collection Scheme.

For an earlier press release on this racket, see Debt Collector Pleads Guilty To Mail Fraud And Tax Evasion.