ORLANDO, Fla. (AP) — The owner of a company that brokered debts from financial institutions is charged with running an operation that bought low-quality debt and sold it as premium debt.
Federal prosecutors said Monday that Leonard Potillo defrauded third-party debt purchasers of more than $70 million.
An indictment unsealed in Orlando says that the owner of United Credit Recovery purchased 11 portfolios of overdraft debt from U.S. Bank for $31 million even though the portfolios had an approximate face value of $820 million.
Prosecutors say Potillo was aided by an unnamed bank worker who was bribed with more than $1 million in exchange for insider information.
No attorney was listed for Potillo in the federal court’s electronic docket.
A phone number for the company was disconnected. No one responded to an email inquiry.
