Niagara Falls Woman Sentenced for Role in $2 Million Debt Collection Scheme

A 37-year-old woman from Niagara Falls has been sentenced to 21 months in prison for her involvement in a fraudulent debt collection scheme that defrauded individuals out of more than $2 million. U.S. Attorney Trini E. Ross announced the sentencing of Erica Lounsberry who was pleaded guilty to conspiracy to commit wire fraud.

U.S. District Judge Richard J. Arcara delivered the sentence following Lounsberry's conviction. Prosecutors revealed that she managed several debt collection agencies that operated under various names including Lakeside Mediations, Lincoln Mediation, Valentine Legal Mediation, First Point Mediation, State Filing and Legal Services, and Elite Services, between January 2014 and February 2017.

As a manager, Lounsberry was responsible for training and overseeing employees who made calls to collect debts from thousands of individuals across the United States. The callers employed deceptive tactics including false claims that debtors would face arrest if they did not pay. They directed victims to other employees posing as attorneys who provided advice and instructions on how to pay off the alleged debts.

Prosecutors noted that Lounsberry and her team routinely targeted individuals they deemed "easy marks," frequently calling them back to demand additional payments. Between February 2015 and December 2016, the scheme resulted in collecting approximately $2,103,105 from unsuspecting victims.

Niagara Falls Woman Sentenced for Role in $2 Million Debt Collection Scheme