Richard Moseley Sr. was handed a $1 civil penalty as opposed to a $69 million fine that would represent his profits.

Kansas City businessman Richard Moseley Sr. ran an illegal $227 million payday loan scheme through a series of businesses and was caught, but the Bureau of Consumer Financial Protection — a federal entity set up to police companies like Moseley’s — agreed to a mere $1 civil penalty due to the businessman’s apparent inability to pay a larger fine.

The parties reached a settlement Friday that gives Moseley ten days to wire the $1 payment to the bureau, wrapping up a lawsuit over the scheme that earned Moseley at least $69.6 in profits.

Critics of the decision point to suspicions that Moseley laundered profits and diverted them to other businesses and holding companies so they would be protected even in the event of regulatory action. This move would have allowed him to personally bankrupt while still having access to tens of millions of dollars in illegal profits.

Trump and longtime friend Mick Mulvaney, acting Director of the Consumer Financial Protection Bureau.

Shortly after taking office as President, Trump tapped a close aide to head the Consumer Financial Protection Bureau, seeking to limit the agency’s reach. Several divisions were disbanded entirely. This appears to have been effective. Trumps longstanding ties to the industry have been a point of contention with those who criticize his decision to trim back the CFPB.

Moseley, 73, was a commercial real estate professional before following the lead of several others in Kansas City into the illegal payday loan racket.

Moseley was found guilty of charging illegal interest rates and, in some cases, taking money out of the bank accounts of consumers who never authorized a loan. Moseley also disguised the enterprise as an off-shore operation when it was actually ran from Kansas City.

The settlement indicated both parties agreed to the $1 penalty in light of Moseley’s claimed inability to pay a larger $69 million fine that would represent his profits from the business.

While there is no set definition of a payday loan, it is usually a short-term, high cost loan, generally for $500 or less, that is typically due on your next payday. Depending on your state law, payday loans may be available through storefront payday lenders or online.

A Payday Loan store in Kansas City. While stores like this are still commonplace in low-income neighborhoods, most payday lending in the USA now occurs via the internet.

To repay the loan, you generally write a post-dated check for the full balance, including fees, or you provide the lender with authorization to electronically debit the funds from your bank, credit union, or prepaid card account. If you don’t repay the loan on or before the due date, the lender can cash the check or electronically withdraw money from your account.

Your ability to repay the loan while meeting your other financial obligations is generally not considered by payday lenders.

Many state laws set a maximum amount for payday loan fees ranging from $10 to $30 for every $100 borrowed. A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400 percent. By comparison, APRs on credit cards can range from about 12 percent to about 30 percent. In many states that permit payday lending, the cost of the loan, fees, and the maximum loan amount are capped.

Payday lenders are often the target of regulatory scrutiny and action. Typically, civil fines levied are in the area of ten times the amount of money fraudulently earned, in addition to punitive charges and any criminal charges which may be filed separately. The goal is to not simply make victims whole, but to dissuade future would-be fraudsters.

It is not clear that the $1 fee levied by the Trump administration will be dissuasive, but it would be hard to argue with the administration’s claim to being business-friendly.