By Debbie Gregory.
By Debbie Gregory.
A slap on the wrist for eight years of scamming veterans might be something like $10,000 or $20,000, minimum but a man accused of misleading veterans to turn over much of their military retirement or disability benefits has been fined $1! Yes, that’s not a typo. One American Dollar.
Oh, and he has been ordered to stop engaging in the illegal scheme of pension poaching.
Despite finding that Mark Corbett’s acts were deceptive and unfair and likely caused “substantial injury” to veterans, the Consumer Financial Protection Bureau (CFPB) handed Corbett the ridiculous fine.
Since 2011, Corbett served as an agent for companies that the CFPB declined to name, calling them the “Doe companies.” He brokered contracts for the companies, marketing to veterans online who were searching for loans to veterans or for pension sales.
On websites he operated, Corbett marketed a deal for veterans with retiree or disability pensions. He set them up with offers from the Doe companies to purchase some or all of those future pension payments in exchange for a lump sum. Veterans would then use an online portal to redirect pension payments to a bank account controlled by one of the Doe companies.
Under federal law, assigning veterans’ pensions to a third party is prohibited. In fact, several veterans complained to Corbett that the transactions were illegal, a charge he denied.
The consent order handed down states that the $1 be paid within 10 days of the effective date, and thereafter distributed to the Civil Penalty Fund to compensate victims of financial crimes!
This is not the first time during the current administration that the CFPB has taken an inability to pay into account to reduce a fine for violations of consumer protection law. Under the previous acting CFPB director, Mick Mulvaney, currently serving as the White House Chief of Staff, this type of reduction was so widespread that it came to be known as the “Mulvaney discount.”
Mulvaney has since been replaced by his former aide, Kathy Kraninger. The discount, however, has remained.
This would be laughable if it wasn’t so egregious. Tell us what you think at info@vamboa.org.
Veteran and Military Business Owners Association, VAMBOA,
