Collector Jailed for Filing False Liens

Debt collector Jeff McCoon was arrested yesterday during his arraignment on 111 felony counts for filing illegal property liens against Sacramento County, Calif., homeowners.

Judge John Winn ordered McCoon to be held until he can prove his $10,000 down payment on his $500,000 bail came from legitimate sources, according to local news reports.

Charges against McCoon include filing false documents, sending threatening letters, grand theft, and attempted extortion. One deputy district attorney said that the charges cover 48 victims.

McCoon is the sole proprietor of Pacific States Credit Co. in Madera County, Calif.

According to a television news investigation, McCoon would create a lien on a property by using a Uniform Commercial Code Financing Statement. A UCC lien is typically recorded by a building improvement company on a property it is working on, and is usually filed with the consent of the property owner.

The liens forced the homeowners to pay off the debt when they refinanced or sold their homes. It's illegal to lien property for unsecured debt without a court order.