Buffalo Staffing Inc., listed among nine companies that were part of a Buffalo-based debt collection operation halted by a U.S. District Court judge, was later determined nlot to be connected to the operation, authorities said.
U.S. District Judge Richard J. Arcara had frozen the operation’s assets and put a receiver in place to run the companies on a temporary basis, after the operation was accused of employing practices that violated federal and state law, illegally collecting $8.7 million. The case was brought by State Attorney General Eric T. Schneiderman and the Federal Trade Commission.
However, a receiver placed over Buffalo Staffing later determined that business “did not appear to be currently engaged in activities connected with the debt collection business.” As a result, Dennis C. Vacco, an attorney representing the accused companies, Schneiderman and the FTC then agreed to a stipulated preliminary injunction adopted by the judge.
“As a result of our agreement with the government, Buffalo Staffing was removed from the oversight of the receiver and is free to operate its business accordingly,” Vacco said.