Home Scam/Fraud CFPB Takes Down High-Yield Savings Account Scam, Defendants Also Charged By the...

CFPB Takes Down High-Yield Savings Account Scam, Defendants Also Charged By the SEC

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The Consumer Financial Protection Bureau (“CFPB”) announced a proposed consent order on December 1 intended to address a scam engaged in by a company called Loan Doctor, as well as by the company’s founder, Edgar Radjabli.

Loan Doctor purported to offer high-yield savings accounts into which customers could deposit funds and be assured not only of insurance coverage but also of obtaining an annual-percentage-yield (APY) on the amounts in the range of 5% to 6.25%. Director Chopra succinctly characterized the conduct: “Loan Doctor and its founder masqueraded as a traditional bank to open accounts for people seeking a high-yield savings product. In reality, this outfit and its ringleader were using customer funds for risky investments.”

Since August 2019 at least 400 individuals put millions of dollars into a product called “Loan Doctor’s Healthcare Finance Savings CD,” with the belief that their deposits would be used…

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