Investigators Raid Burnsville Credit Repair Business
MINNEAPOLIS (WCCO) -- A Twin Cities business that says it can improve your credit profile could be in some money trouble of its own.
Federal and state investigators took boxes of documents from United Credit Consultants in Burnsville on Wednesday morning.
A WCCO Investigation exposed problems at the business months ago. Customers said they didn't get what they paid for, and former workers are suing over thousands of dollars they say they're owed.
While investigators seized dozens of boxes of documents Wednesday, a sign on the door kept customers away.
"I can't even tell you how long the investigation's been going on," IRS Special Agent Vicki Petricka said.
Three agencies went in unannounced: The IRS, Department of Commerce and postal inspectors.
"Generally when we do a search warrant, we will take computers and any kind of documents or records that's related to what we're looking at," Petricka said.
They wouldn't say exactly what they were looking for, but WCCO exposed UCC customer complaints in February. Records showed credit cards still being run by the company after clients paid their bills.
Former workers told us payroll was consistently a problem, and that UCC wasn't correctly classifying employees so the owner could avoid paying payroll taxes.
Joe McGlynn started UCC six years ago. His wife, Tara, is in charge of billing.
She didn't have much to say in the wake of what happened, in a hurry to drive off in the McGlynns' Maserati.
"We'll be open. We are open," Tara said.
The IRS says United Credit Consultants is allowed to continue their business, and no charges have been brought against the company in connection with this raid.
Wednesday's investigation is sealed by the United States Attorney. No details from the search warrant can be released until that changes.
The Department of Commerce has fined UCC in the past for false advertising and for practicing debt settlement without a license.
Company owner Joe McGlynn did not return our calls for comment.
[EDITOR'S NOTE: An earlier headline on this story said the FBI took part in the raid on United Credit Consultants. The FBI did not take part; the IRS, the Department of Commerce, and postal inspectors performed the raid.]
