(WNY News Now) – A Niagara Falls woman has been sentenced to prison for orchestrating a fraudulent debt collection scheme that targeted thousands of victims across the U.S., collecting millions through deceit.
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced that Erica Lounsberry, 37, of Niagara Falls, NY, has been sentenced to 21 months in federal prison. Lounsberry, who was convicted of conspiracy to commit wire fraud, was sentenced by U.S. District Judge Richard J. Arcara.
From January 2014 to February 2017, Lounsberry managed several fraudulent debt collection agencies operating under names like Lakeside Mediations and Elite Services. As a leader in the scheme, Lounsberry trained and directed employees who contacted alleged “debtors.” These employees posed as attorneys and used false identities, threatening victims with arrest or criminal charges if they didn’t pay. The victims, many of whom had already settled their debts, were misled into making additional payments via MoneyGram, bank transfers, and credit cards.
The fraudulent operation collected over $2 million from victims. Lounsberry and her team targeted vulnerable individuals they deemed “easy targets,” repeating their deceptive practices for profit.
The investigation was conducted by Homeland Security Investigations, the IRS Criminal Investigation Division, the U.S. Postal Inspection Service, and the New York State Office of Inspector General.
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