Tonawanda man accused of taking more than $3 million from victims in a debt collection scheme

On November 20, 2024By Pranco

BUFFALO, N.Y. (WIVB) – A Tonawanda man was sentenced Tuesday to three years and one month in prison after allegedly taking more than $3 million from victims in a debt collection scheme, the U.S. Attorney’s Office announced.

Joseph Ciffa, 56, was convicted of conspiracy to commit fraud and filing a false tax return.

Officials said Ciffa had been involved in a debt collection business since at least 2013. Since 2015, he is alleged to have worked with others to run an illegal debt collection business. He operated out of Niagara Falls, Kenmore and his home office on Grand Island, authorities said.

According to the law firm, the operation used fraudulent means to collect debts, collect debts already collected, collect excess amounts of debts actually owed, and process and remit payments related to the collection of the debts.

The debt collectors allegedly made threatening statements to debtors over the phone to try to obtain payment of debts, including references to criminal laws and filing criminal complaints and arrest warrants, officials said.

Debtors allegedly forwarded calls from employees posing as lawyers in an attempt to obtain payment.

From January 2015 to December 2016, Ciffa’s operation collected $3,061,205 from victims, officials said. He also allegedly filed a false 2015 tax return by underreporting his business income, which resulted in avoiding a $15,651 tax liability.

In 2016, he committed Medicaid benefits fraud, officials said, to receive benefits for himself and his children.

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Katie Skoog joined the News 4 team in April 2024. She graduated from the University at Buffalo. You can view more of her work here.

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