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Second Charlotte debt collection agency accused of fraud

CHARLOTTE, N.C. — For the second time this year federal prosecutors have accused a Charlotte-based collection agency of fraudulenty collecting debts.

A forfeiture complaint filed in federal court Monday accuses "Direct Processing LLC" of wire fraud and other violations. However, no criminal charges have been filed.

Prosecutors said between 2013 and 2015, the company was involved in a scheme to defraud people by "coercing purported debtors to pay them debts that may or may not have been owed."

The documents go on to describe victims, some elderly, who allegedly paid money they did not owe.

Laurence Sessum, 41, is listed as an organizer of the company. Investigators said he pleaded guilty to operating an unlicensed collection agency after his arrest in 2014. However, the North Carolina Department of Insurance issued a permit to the company later that year, prosecutors said.

"Apparently it's not that difficult to get if these types of characters can get that type of licensing, that type of permit," said Tom Bartholomy, President of the Better Business Bureau of the Southern Piedmont.

Prosecutors also said Sessum instructed at least one employee not to talk to the police or FBI if they were to show up to the office.

The Better Business Bureau received at least 8 complaints about "Standard Mediation", which prosecutors said is a name Direct Processing used with payees. The complainants described the tactics as "harassing" and "rude."

The BBB said it has seen the tactics from other Charlotte area companies too.

In September, federal authorities accused collection agency Berkeley Hughes and Associates LLC of being involved in a fraudulent collection scheme.

Bartholomy said there are four or five companies that popped up in Charlotte around 2013. He said they employ similar tactics and have similar information. However, the same people are not involved.

"They were obviously getting information on how to run that business from a single source," Bartholomy told Channel 9.

Bartholomy said state and federal agencies are now involved in looking into possible ties between the companies.

"It's working up that food chain to see who the kingpin is that got this all started," he said.

Eyewitness News contacted a spokesperson for the Department of Insurance Tuesday but did not immediately hear back.

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