Federal Trade Commission settles charges against former ALMS champion for $21m

Level 5 Motorsports team owner Scott Tucker has settled charges filed by the Federal Trade Commission in relation to his payday loan companies AMG Services, Inc., and MNE Services, Inc. They will pay $21 million in damages related to violating "the law by charging consumers undisclosed and inflated fees," according to the FTC.

It is "the largest FTC recovery in a payday lending case," according to a press release distributed by the FTC, and in another ruling, both companies "will waive another $285 million in charges that were assessed but not collected."

The heart of the complaint filed against AMG and MNE centered on misrepresenting the actual costs required to repay the high-interest loans. "For example, the defendants' contract stated that a $300 loan would cost $390 to repay, but the defendants then charged consumers $975 to repay the loan," the FTC stated.

An initial charge against Tucker by the FTC in 2012 called Level 5's sponsorship acquisition methods into question: "One of the defendants who allegedly controlled the lending companies is automobile racer Scott Tucker. According to documents filed with the court, Tucker and his co-defendant and brother, Blaine Tucker, allegedly transferred more than $40 million dollars collected from consumers by the payday lending companies to another company Scott Tucker controls, Level 5 Motor Sports, for 'sponsorship' fees that benefit Scott Tucker's automobile racing."

Level 5 became a dominant presence in the world of sports car racing when it burst onto the scene in 2008. Even within the costly playground of sports car competition, Level 5's notable commitment to fielding the best cars, hiring the best staff, retaining prized co-drivers, and using the most lavish support equipment distinguished the Wisconsin-based program from most of its rivals.

With Scott Tucker playing the dual role of owner and driver, Level 5 won multiple Teams' and Drivers' championships in the ALMS P2 category.

The team's last major pro racing victory came in January of 2014 when its No. 555 Ferrari F458 claimed the GT Daytona class win at the Rolex 24 at Daytona. The team pulled its entry from the TUDOR United SportsCar Championship after Daytona, and has not returned to top-tier motor racing.

In March of 2014, Tucker's brother Blaine committed suicide, adding to the unfortunate turn of events for the Tucker family.

The FTC settlement marks the end of an ongoing pursuit of AMG and NME for its payday loan practices, and as part of the settlement agreement, routine compliance monitoring has been implemented.​