Adrian Rubin, 61, of Jenkintown, was sentenced to 37 months’ imprisonment and three years’ supervised release, ordered to pay a $100,000 fine and $400 special assessment, and ordered to forfeit $9,621,800 in proceeds.
Rubin was one of three people, including attorney Wheeler Neff, of north Wilmington who have received prison terms in the case.
Rubin previously admitted to collecting unlawful debt from payday loans and helping his sons, Blake and Chase Rubin, orchestrate a multi-million-dollar telemarketing scam.
Rubin previously pleaded guilty to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (“RICO”), one count of conspiracy, and two counts of mail fraud. The RICO conspiracy charge arose from Rubin’s participation in a conspiracy to collect the debt from so-called “payday loans” – short-term consumer loans that typically come due on the borrower’s next payday – that had annual interest rates exceeding 780 percent.
Such loans are illegal in Pennsylvania, but not in Delaware. Rubin admitted that in 2012, he collected $2 million in payday loan debt.
Rubin’s RICO co-conspirators included Charles M. Hallinan, the reputed “godfather of payday lending,” and Wheeler K. Neff, who served as Hallinan and Rubin’s lawyer.
Rubin testified that he conspired with Hallinan and Neff to hide his payday lending behind a California-based Indian tribe for the purpose of circumventing state usury laws. Hallinan and Neff were both convicted by a federal jury last November of RICO and other charges. In July 2018, Hallinan was sentenced to 14 years. In May Neff received an eight-year sentence.
Rubin also obtained $7,552,473 in proceeds from an illegal telemarketing scheme to defraud more than 70,000 people into purchasing worthless credit cards, the U.S. Attorney for Philadelphia’s office stated.
The credit cards were marketed as the Platinum Trust Card and the Express Platinum Card and were based on false and misleading representations that the products worked like regular credit cards and could help customers establish or improve their credit.
Rubin also was sentenced today to 32 months in prison, filed $100,000, and ordered to pay forfeiture and restitution.
Blake Rubin is scheduled to be sentenced on August 8 and another co-conspirator, Justin Diaczuk, is scheduled to be sentenced on August 14, 2018.
In addition to the prison sentence, Rubin was ordered to forfeit $2,069,327 in payday loan proceeds and all $7,552,473 in proceeds from the telemarketing scheme.