U.S. Attorney Trini E. Ross | U.S. Department of Justice
Joseph Ciffa, a resident of Tonawanda, NY, has been sentenced to 37 months in prison following his conviction for conspiracy to commit wire fraud and filing a false tax return. U.S. District Judge Richard J. Arcara handed down the sentence.
Assistant U.S. Attorney Franz M. Wright reported that Ciffa was engaged in the debt collection industry since at least 2013. Starting in early 2015, he led an illegitimate debt collection operation from several locations including Niagara Falls, Kenmore, and Grand Island, NY. The business employed fraudulent tactics to collect debts multiple times or over-collect on actual debts owed. Collectors used threatening language over the phone to coerce payments from debtors by referencing criminal statutes and legal actions. Employees often impersonated attorneys during these calls to further intimidate individuals into paying.
From January 2015 through December 2016, Ciffa's scheme amassed approximately $3,061,205 from victims. Additionally, he filed a false tax return for 2015 which resulted in underreported business income and avoided around $15,651 in taxes. In another instance of fraud in 2016, Ciffa misrepresented his income on a Medicaid benefits application with Erie County Department of Social Services to obtain benefits for himself and his children.
The investigation leading to this sentencing involved Homeland Security Investigations led by Special-Agent-in-Charge Erin Keegan; the IRS Criminal Investigation Division under Special Agent-in-Charge Thomas Fattorusso; the United States Postal Service Inspection Service directed by Acting Inspector-in-Charge Ketty Larco-Ward; and New York State Office of Inspector General headed by Lucy Lang.
