Payday Lending ‘Godfather’ Takes RICO Conviction to High Court

The “godfather of payday lending” asked the U.S. Supreme Court on Wednesday to overturn his conviction for funneling high-interest loans through American Indian tribal partnerships, saying the government can’t prove criminal intent because he thought he’d found a legitimate loophole.

Charles Hallinan, who pioneered the “rent-a-tribe” end run around state usury laws capping interest rates, is serving 14 years in federal prison following his 2017 conviction for racketeering, conspiracy, money laundering, and wire fraud.

His Supreme Court petition mainly concerns the section of the Racketeer Influenced and Corrupt Organizations Act that he was convicted of violating. The statute makes it ...