Buffalo Debt Collector Pleads Guilty to Fraud and Tax Evasion

A former debt collector based in Buffalo, N.Y. plead guilty to federal charges of mail fraud and tax evasion in connection with an illegal debt collection operation, the Justice Department announced Friday.

U.S. Attorney William J. Hochul, Jr. , of the Western District of New York, said in a statement that Neil G. Wieczkowski, 42, of Buffalo, N.Y., pleaded guilty to mail fraud and tax evasion before Chief U.S. District Court Judge William M. Skretny.  The charges carry a maximum penalty of 25 years in prison and a $500,000 fine.

Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that between October 2006 and October 2009, Wieczkowski and his partner Timothy E. Arent, who has also been charged, were engaged in a fraudulent debt collection scheme (“Feds Arrest Two in Buffalo for Debt Collection Scam,” Oct. 5, 2009).

According to the complaint filed against Wieczkowski and Arent, the defendants illegally purchased debtor information from two former employees of Capital Management Services, a Buffalo debt collection business. Those former employees, Thomas Rice and Andrew Jon Pytlewski, have pleaded guilty to stealing the debtor information and will be sentenced in February (“Collection Director Admits Selling Debtor Information,” Oct. 26, 2010).

Wieczkowski and Arent used the information to contact victims and coerce them into making payments on completely fictitious debt going so far as to identify themselves as law enforcement officers. During this three year period, Wieczkowski and Arent deposited approximately $6.8 million in checks written by over 1,000 victims from all over the country.

In addition to the fraud committed in the debt collection business, Wieczkowski admitted to under-reporting business income in 2007 and 2008.

Wieczkowski is scheduled to be sentenced April 26. Arent is scheduled to appear before the judge later this week where he is expected to enter a guilty plea as well.