A scheme involving unlawful money lending or “loan sharking” dismantled by U.S authorities.”Yemeni expatriates in need of cash were introduced to Kramer, Neil S. Kramer, a New York attorney who provided loans ranging in amounts from $5,000 to $100,000.
In return, the borrowers were required to sign a “confession of judgment,” wherein the debtor “confesses” an amount due to a creditor before any lawsuit is filed and the creditor can use it to obtain judgment if the debtor does not make restitution. A confession of judgment requires the debtor to waive important due process rights, such as the right to a trial by jury, and is not legally recognized in many states. In addition, the confession of judgment left blank the amount of the loan, the terms of the loan and the due date – all to be filled in at a later time by the defendants. In some instances, the debtors were required to surrender the leases to their businesses, as well as their travel and residency documents, such as U.S. Citizenship and Immigration Service Permanent Resident Alien Cards (“green cards”) and passports, until their debts were paid in full.