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Authorities Shut Down Debt-Scam 'Boiler Room'

(CBS) – State and federal officials say they have shut down a fake debt collection "boiler room" in the Chicago area, but not before operators scammed victims out of more than $3 million.

CBS 2 Investigator Pam Zekman reports.

Steve Baker of the Federal Trade Commission describes how operators allegedly approached their victims.

"They were told that their wages would be garnished, that they would have their drivers licenses suspended or revoked or that they were going to be sued," he said. "One consumer was even told that they would drag her (expletive) to jail if she didn't pay."

Darlene Petroski says she was told pay $300 now or $3,000 later.

"This man intimidated me. He made me feel fear, anxious, and I cried. You know I really did. I broke down in tears," she says.

Typically, it's difficult for authorities to catch operators of alleged scams like this because they usually operate in foreign countries. In this case, they were operating a boiler room in the Chicago area, in a storefront in Aurora, authorities said.

Charles and Chantelle Dickey allegedly used nine company names since 2010. The most vulnerable people applied for payday loans online.

"It may look like a very legitimate website, but for all you know you are directly giving your information to a group of criminals, and that's partly what seems to have happened here,' Illinois Attorney General Lisa Madigan said.

"These guys are ripping off people who can least afford to be robbed ... people who are just managing to keep their heads above water financially," Baker, the FTC official, said. "So, that's what really makes me angry about this operation."

The Dickeys could not be reached for comment. For now, a judge has issued an order shutting down their office and freezing their assets until hearings are complete.

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