A debt collection operation was recently stopped by a court order requested by the Federal Trade Commission, reports the FTC.
The scheme deceived customers by making fake threats that they would be sued or arrested over debts they did not in fact owe. Two people and seven companies in Corona, California were charged for doing business under the name Rincon Debt Management.
The court order issued by a US district court freezes their assets, stops illegal conduct, and appoints a provisional receiver to handle business while the case moves forward.
Read the full FTC report here.