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Tucker became a millionaire from the payday-lending business he started more than a decade ago. When state investigators started digging into the companys practices, Tucker came up with a plan to sell the business to three Indian tribes while continuing to run the company and to collect most of its profits, according to recent court records filed in Colorado. The Center for Spg amex cash advance Integrity and CBS News jointly investigated and exposed Tuckers involvement in the tribal payday lending business in September.
Critics have dubbed this tactic rent-a-tribe and other lenders have copied the practice. Several states have tried to take action against the company without success. The business has even won major court challenges in the California Court of Appeals and the Colorado Supreme Court.
Colorado Attorney General John Suthers has been trying to stop Tucker and the tribes from lending in his state for seven years and uncovered evidence that the deal Tucker cut with the tribes allowed him to keep 99 percent of the revenue. But a Denver judge recently ruled that, despite this evidence, the state was unable to prove that the deal was a sham.
As a result, the business continues to make unlicensed loans even in ace cash advance san jose ca where payday lending is restricted or illegal.