FBI searches NCO center in Creditrust probe
FORT WASHINGTON, Pa. (Reuters) - NCO Group Inc. , an accounts receivable management services provider, said Thursday the Federal Bureau of Investigation searched its Baltimore collection center in a probe related to its recently acquired Creditrust business.
The company and its majority-owned NCO Portfolio Management Inc. said the search related to Creditrust's "alleged prebankruptcy activities" before the acquisition. In February, NCO Group merged its NCO Portfolio Funding unit with Creditrust, which buys delinquent credit networks Visa and MasterCard debt, to form NCO Portfolio Management.
NCO Group said in a statement that a Justice Department representative confirmed that neither the company nor NCO Portfolio Management were the subject of the investigation.
Justice Department officials could not be reached immediately.
Peter Gulotta, special agent media representative for the Baltimore division of the FBI said: "We executed search warrants but they are sealed, and we can't make any comments with regards to them."
Creditrust documents were stored at the NCO Baltimore collection center, the companies said. The FBI search did not disrupt that center's activities, nor would it hurt that office's operating results, NCO said.
NCO Group stock was down $1-9/16 at $31-3/8 in midday Nasdaq trade, the high end of a 52-week range of $35-1/2 and $11-11/16. NCO Portfolio Management, which in the past year has traded between $6 to $12-1/4, was up 25 cents at $8.75.
12:06 03-15-01 |
