In reaction to complaints that the Tucker Payday Lenders had been expanding loans that are abusive breach of these usury regulations, several states begun to investigate the Tucker Payday Lenders.
To thwart these state actions, TUCKER devised a scheme to declare that their financing organizations had been protected by sovereign resistance, a appropriate doctrine that, among other items, generally stops states from enforcing their guidelines against indigenous American tribes. Starting in 2003, TUCKER joined into agreements with a few native tribes that are americanthe вЂњTribesвЂќ), such as the Santee Sioux Tribe of Nebraska, the Miami Tribe of Oklahoma, and also the Modoc Tribe of Oklahoma. The objective of these agreements would be to result in the Tribes to claim they owned and operated areas of TUCKERвЂ™s lending that is payday, so whenever states sought to enforce rules prohibiting TUCKERвЂ™s loans, TUCKERвЂ™s financing organizations would claim become protected by sovereign resistance. In exchange, the Tribes received re payments from TUCKER, typically one per cent regarding the profits through the part of TUCKERвЂ™s payday lending company that the Tribes purported to possess.
To be able to produce the impression that the Tribes owned and controlled TUCKERвЂ™s lending that is payday, TUCKER and MUIR involved with a few lies and deceptions. Among other items:
- MUIR as well as other counsel for TUCKER ready false declarations that are factual tribal representatives that have been submitted to mention courts, falsely claiming, on top of other things, that tribal corporations substantively owned, managed, and handled the portions of TUCKERвЂ™s company targeted by state enforcement actions.
- TUCKER launched bank records to work and get the profits associated with lending that is payday, that have been nominally held by tribally owned corporations, but that have been, in reality, owned and managed by TUCKER.