Level 5 Motorsports makes the news

I'll just leave this here and let you guys discuss:

http://www.thecuttingedgenews.com/index.php?article=72722&pageid=89&pagename=Features

Ok, for me to understand this correctly, Tucker was running a business that was illegal in that particular state. So, he sold it to an Indian tribe because Indian tribes go unregulated, though he stayed on to run the business. Now they are investigating him. Is this correct?

"Tucker came up with a plan to sell the business to three Indian tribes while continuing to run the company and to collect most of its profits,"

I guess they havent learned much since the Manhattan deal.

Giant Purple Snorklewacker wrote: Is this really "cuttingedgenews"? I saw this last year on 20/20.

EDIT: Good morning and sorry for the abruptness (as Mr D.S. Wallens requested). I politely refute the cutting edgedness of that article but it is an interesting read nonetheless my good man!

Here is the Associated Press's story:

WASHINGTON (AP)—A payday lending operation that offers quick cash over the Internet to desperate people, and the race-car driver allegedly running it, are under federal scrutiny after more than 7,000 complaints to authorities.

The Federal Trade Commission filed a complaint Monday in U.S. district court in Nevada against driver Scott Tucker, his brother and several Internet-based lending companies, including AMG Services, Inc.

Tucker has raced in the American Le Mans Series. The FTC charges that he and others controlled lending companies that piled on undisclosed and inflated fees — in some cases more than triple the amount borrowed—and then collected on the loans illegally by threatening borrowers with arrests and lawsuits.

In one example, a consumer was told that a $500 loan would cost him $650 to repay. Instead, the FTC says, the defendants attempted to charge him $1,925 to pay off the loan. The agency says he was threatened with arrest if he didn’t pay that amount.

Payday loans are typically small, short-term loans with extremely high interest rates that are effectively advances on a borrower’s next paycheck.

According to the FTC, the payday lending operation involving Tucker has claimed in state legal proceedings that it is affiliated with Native American tribes and therefore immune from legal action. Tribal affiliation does not exempt Tucker and others from complying with federal law, the commission says.

Over the last five years, more than 7,500 complaints about the operation have been filed with law enforcement authorities.

Tucker and his brother, Blaine, are accused of transferring more than $40 million collected from payday loans to consumers to another company, Level 5 Motorsports, which is controlled by Scott Tucker. The FTC says the money was transferred as “sponsorship” fees for Tucker’s racing career.

Tucker did not immediately respond to a request for comment to his office email.

Here is one from Sept. of last year...

AS much as I want to race really fast cars in competition I would stop well before setting up a racket like that to do so.

clearly, race car drivers are evil.

It takes a lot of money to feed the go-fast crack pipe... and the pursuit of money can really bring out the worst in people.

because RACE CAR?

Giant Purple Snorklewacker wrote:

Giant Purple Snorklewacker wrote: Is this really "cuttingedgenews"? I saw this last year on 20/20.

EDIT: Good morning and sorry for the abruptness (as Mr D.S. Wallens requested). I politely refute the cutting edgedness of that article but it is an interesting read nonetheless my good man!

Oh, I get it!

He is not alone in the sleazy egomaniac dept.

http://www.autoblog.com/2010/12/03/followup-farnbacher-loles-team-owner-charged-with-10m-fraud/

The article is a hack job with a bias. Two paragraphs are mostly repeated. There were an awful lot of "somebody else alleges something different" and not a lot fact-checking. Payday lending is a favorite whipping boy and the allegations of "800% interest" is usually misleading, based on small loan amounts and including fees as interest. The fact that the company has won numerous court trials is presented in such a way as to make them look like repeat offenders rather than someone who has been vindicated in court several times. It is not made clear if the company operates store-fronts or only operates online. It is not stated whether clients are only tribal members or not.

That said, the facts that were relayed do not portray a positive case for Tucker or his company. It also looks like "You, too, can be a pro racer. Just return your cereal box-top with a check or money order for $40 million and you'll get your very own race team."

It sucks that racing is hit with these scandals over the years.

David

I mean . . .what else would you expect from a guy that puts himself as a driver for both his cars to ensure he wins the title . . .

Yea . . . yea. I know it's an IMSA rule in LMPC and GTC that allows gentlemen racers to drive in up to two cars, scoring points in the highest-placed entry. Can't be mad at him for using the rules to his advantage . . .

I was at Barber discussing this team and how someone could bring 50 thousand hats to Sebring 12 hr and hand them out