A Kansas City-area father and son who prosecutors say ran a fraudulent $227 million payday loan scheme will pay a civil fine of just $1, the Kansas City Business Journal reported. Richard Moseley Sr. and Richard Moseley Jr. will pay the fine as part of a settlement reached on Friday with the Bureau of Consumer Financial Protection. Federal officials say the Moseleys operated a group of companies, referred to as the Hydra Lenders, that made $227.7 million in loans, generating $69.6 million in gross profits, since January 2008, according to a consent order. A bureau complaint alleges that the Hydra Group made loans to consumers that the borrowers had not authorized and charged biweekly “finance charges” indefinitely. Moseley Sr. was found guilty in November of racketeering, fraud and identity theft and sentenced in June to 10 years in prison and ordered to forfeit $49 million. The consent order entered into Friday calls for the Moseleys to forfeit approximately $14 million in frozen assets. A $69 million order to pay defrauded borrowers was suspended. According to the order, the suspended judgment and $1 civil fine were set because of the “defendants’ limited ability to pay.”
