New York state regulators have taken action against several Buffalo, N.Y.-area collection agency owners who were charged recently with preying on consumers - including military personnel.
The actions include the conviction of one collector, the banning of an attorney from the collection business and settlements with three collectors who threatened consumers, made false representations and improperly called consumers at their places of employment.
Attorney General Eric Schneiderman's office announced Friday the actions, which resulted from several investigations.
• Stephanie Lowinger, who owned and operated Neiman, Rona & Associates, pleaded guilty to scheme to defraud in the second degree, a misdemeanor. She is permanently banned from collection activities in New York. Investigators say Lowinger and collectors she employed falsely told members of military families that those on active duty faced arrest by military police and a dishonorable discharge if they didn't pay alleged debts.
• Frank Santiago, owner of Eastern Asset Management and Northern Asset Management, must pay $60,000 in civil penalties and "reform his debt collection practices."
• John Nicolia, Santiago’s attorney, is permanently banned from any collection activities and must pay a civil penalty of $20,000.
• Richard and Peggy Cerrone, are required to pay $85,000 in penalties and must take "significant steps to clean up their business practices."
Richard Cerrone owns and operates the Southern Tier Agency Inc., Check & Credit Reporting Inc. and Credit & Check Filing Inc. Peggy Cerrone owns and operates the Cornerstone Resolution Group Inc.
“These individuals preyed on vulnerable consumers and military personnel who were already struggling financially, by using scare and intimidation tactics,” Schneiderman said in a statement. “Today’s settlements send a strong message that this office will not tolerate collectors intimidating consumers, or attorneys improperly lending their names to debt collectors.”
