Scott Tucker, a race car driver who lives in Leawood, Kan., was arrested on Wednesday in Kansas City, Kan., in connection with a $2 billion Internet payday loan business that federal authorities allege is unlawful.
Tucker, 53, was arrested on Wednesday along with Timothy Muir, 44, of Overland Park, in connection with the case, according to federal authorities. Muir was an attorney for the business. Prosecutors alleged the two used deceptive practices to get money from more than 4.5 million people.
An indictment was released from the U.S. attorney’s office in the Southern District of New York that alleged Tucker operated a nationwide payday lending business that evaded state laws to charge illegal interest rates as high as 700 percent on loans.
According to federal authorities, Tucker alleged that the $2 billion business was actually owned and operated by Native American tribes. The indictment claims that Tucker attempted to evade state usury laws by claiming his businesses were protected by tribal sovereign immunity.
A federal prosecutor announced an agreement with two tribal corporations controlled by the Miami Tribe of Oklahoma in which the tribal corporations will forfeit $48 million in proceeds from Tucker’s payday lending enterprise that are currently held in tribal bank accounts.
To view the indictment that was unsealed on Wednesday, visit http://www.justice.gov/usao-sdny/file/823406/download.