Loan Sharking Prosecutions In Usa
๐ What Is Loan Sharking?
Loan sharking refers to the illegal practice of lending money at exorbitant interest rates, often enforced through threats, intimidation, or violence. It is typically associated with organized crime but can involve other offenders.
Key Legal Provisions in the U.S.:
Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. ยง 1961 et seq.
State usury laws limiting interest rates
Extortion statutes (18 U.S.C. ยง 1951)
Violence and threats statutes
Money laundering laws
Loan sharking prosecutions often involve proving illegal lending terms and coercive enforcement tactics.
โ๏ธ Key Loan Sharking Prosecution Cases
1. United States v. James Burke (The "Goodfellas" Case, 1980s)
Facts: James Burke was a notorious mobster linked to loan sharking operations tied to the Lucchese crime family. He lent money at extremely high rates, used violence against debtors, and operated illegal gambling and extortion rackets.
Legal Issues: RICO violations, loan sharking, extortion, and conspiracy.
Ruling: Burke was convicted on multiple counts including loan sharking and racketeering and sentenced to 20 years.
Significance: Classic example of how loan sharking ties into organized crime rackets prosecuted under RICO.
2. United States v. Vincent Alo (1990)
Facts: Alo ran an illegal loan sharking ring in New York, charging usurious rates often exceeding 10% weekly. Debtors were threatened with violence or property damage for non-payment.
Legal Issues: Racketeering, extortion, illegal lending, and conspiracy.
Ruling: Convicted under RICO and sentenced to 15 years in prison.
Significance: Showed federal willingness to prosecute loan sharking as part of broader organized crime efforts.
3. United States v. Anthony "Fat Tony" Salerno (1988)
Facts: Salerno, a top Gambino family leader, was involved in a massive loan sharking operation across NYC. Loan sharks used threats and violence to collect debts.
Legal Issues: RICO conspiracy, illegal gambling, extortion, and loan sharking.
Ruling: Convicted in the Mafia Commission Trial and sentenced to 70 years.
Significance: Demonstrated federal crackdown on mafia loan sharking with long-term, high-profile convictions.
4. United States v. Samuel "Little Sammy" Corsaro (2006)
Facts: Corsaro ran a loan sharking and extortion racket in New Jersey, lending money at 15% weekly interest and threatening debtors with harm.
Legal Issues: Loan sharking, extortion, racketeering.
Ruling: Pleaded guilty and sentenced to 10 years.
Significance: One of the notable modern prosecutions showing ongoing federal efforts against loan sharking outside traditional Mafia cases.
5. United States v. Craig Purcell (2012)
Facts: Purcell operated a loan sharking business in Florida, charging excessive interest and threatening violence. He targeted vulnerable individuals including addicts.
Legal Issues: Loan sharking, threats, wire fraud.
Ruling: Convicted and sentenced to 12 years in federal prison.
Significance: Case illustrated federal focus on protecting vulnerable populations from predatory lenders.
6. United States v. Gregory Scarpa Jr. (1998)
Facts: Scarpa Jr., son of a notorious mob hitman, ran loan sharking and extortion rackets in NYC, using violence to enforce repayment.
Legal Issues: Racketeering, loan sharking, extortion, conspiracy.
Ruling: Convicted and sentenced to 15 years.
Significance: Emphasized familial criminal legacies and the use of RICO statutes to combat multi-faceted loan sharking enterprises.
7. United States v. Michael "Mikey Cigars" Coppola (2000)
Facts: Coppola ran an illegal loan sharking operation in Pennsylvania with brutal collection methods including assault.
Legal Issues: Loan sharking, extortion, racketeering.
Ruling: Convicted and sentenced to 20 years.
Significance: Reinforced that violent enforcement methods in loan sharking attract severe federal penalties.
๐ง Legal Elements in Loan Sharking Prosecutions
| Element | Explanation |
|---|---|
| Illegal Interest Rates | Charging interest rates beyond state usury limits, often disguised or hidden. |
| Coercion and Threats | Use of violence, threats of harm, or property damage to enforce repayment. |
| Racketeering | Loan sharking often prosecuted as part of broader criminal enterprise under RICO statutes. |
| Conspiracy | Agreements between multiple actors to carry out illegal loan sharking operations. |
| Money Laundering | Hiding proceeds of loan sharking through legitimate businesses or complex financial transactions. |
โ Summary
Loan sharking prosecutions in the U.S. have historically focused on organized crime groups operating illegal lending with violent or coercive enforcement. Federal authorities use statutes like RICO, extortion laws, and usury laws to secure convictions.
Modern cases increasingly target not only traditional mobsters but also smaller-scale operators who exploit vulnerable populations. Sentences range from several years to decades depending on the scope and violence involved.
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