(WNY News Now) – A key figure in a fraudulent debt collection scheme is headed to federal prison.
BUFFALO, N.Y. – Joseph Ciffa, 56, of Tonawanda, NY, was sentenced to 37 months in prison by U.S. District Judge Richard J. Arcara after pleading guilty to conspiracy to commit wire fraud and filing a false tax return.
Decade of Deceitful Practices
Ciffa’s illegal activities in the debt collection industry spanned years, beginning in 2013. From 2015 onward, he led an illegitimate operation headquartered in multiple Western New York locations, including Niagara Falls, Kenmore, and Grand Island. Under Ciffa’s direction, employees employed aggressive and deceitful tactics to collect and over-collect debts, often resorting to threats of criminal charges or impersonating attorneys to coerce payments from victims.
Between January 2015 and December 2016, the scheme netted over $3 million from unsuspecting victims.
Tax and Benefit Fraud Uncovered
In addition to his fraudulent debt collection practices, Ciffa filed a false tax return for 2015, underreporting income and evading more than $15,000 in taxes. Further investigation revealed that he also falsified a Medicaid benefits application in 2016, misrepresenting his income to secure benefits for himself and his children.
Coordinated Investigation
The sentencing follows an extensive investigation by multiple agencies, including Homeland Security Investigations (HSI), the IRS Criminal Investigation Division, the U.S. Postal Inspection Service, and the New York State Office of Inspector General. Their collaborative efforts exposed Ciffa’s wide-reaching scheme and financial misdeeds.
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