Attorney General Cuomo Announces Felony Charges Against Owner Of Debt Collection Company That Targeted Military Personnel

BUFFALO, N.Y. (September 27, 2010) - Attorney General Andrew M. Cuomo today announced the filing of felony charges against the owner of a debt collection company that targeted military personnel and harassed active members of the military and their families.

The investigation led to the filing of criminal charges against Stephanie Lowinger of Anderson Place in Buffalo, owner and operator of Neimen, Rona & Associates, formerly Morgan, Stone & Associates and now known as Gordon, Cappolli & Associates, all debt collection companies based in the Buffalo area. In addition to the criminal charges, the Attorney General has also filed a civil lawsuit seeking to shut down Lowinger’s operation and secure restitution, penalties, and costs. The action is the latest in Attorney General Cuomo’s ongoing probe of illegal practices in the debt collection industry.

Attorney General Cuomo’s investigation found that Lowinger specifically targeted military personnel, referring to their alleged debts as “special accounts.” Lowinger instructed employees to find out where the military members were stationed and identify their commanding officers. Lowinger had employees threaten to call and, in some cases, actually did call the commanding officers, both of which are illegal debt collection tactics.

According to a former employee, Lowinger also contacted the military personnel’s family members in order compel them to pay, another illegal tactic. In addition, the investigation uncovered that Lowinger falsely told military members or their families that she worked for the Department of Justice and illegally demanded immediate payment. She allegedly said that if payment was not made immediately, the active duty family member would be arrested by the military police and would face a dishonorable discharge.

“This individual is accused of operating her businesses in a lawless fashion, instructing her collectors to do anything necessary to collect on an alleged debt, even if it meant harassing and threatening members of the military and their families,” said Attorney General Cuomo. “We will continue to investigate debt collectors who try to take advantage of unsuspecting individuals facing hard economic times and we will bring them to justice.”

Among the allegations detailed in Attorney General Cuomo’s court papers, Lowinger and her collectors: