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CFPB Takes Action Against James and Melissa Carnes for Fraudulently Hiding Money to Evade Law Enforcement

Carnes operated a deceptive online lender, will pay $7 million to the CFPB

WASHINGTON, D.C. - Today, the Consumer Financial Protection Bureau (CFPB) filed an order to resolve its lawsuit against James R. Carnes and Melissa C. Carnes for fraudulent transfers to avoid paying restitution and penalties. In April 2023, the CFPB sued James and Melissa Carnes for hiding money, through multiple fraudulent transfers over two years, in an effort to avoid paying more than $40 million owed by James Carnes. Today’s stipulated judgment and order, if entered by the court, would require James and Melissa Carnes to pay $7 million to the CFPB.

“James and Melissa Carnes concocted a scheme to hide money to avoid paying victims of an illegal lending scam,” said CFPB Director Rohit Chopra. “The CFPB’s action today makes clear that the agency will not allow lawbreaking companies and individuals to escape the consequences of their misdeeds.”

James Carnes was the chief executive officer of Delaware-based Integrity Advance, a short-term, online lender. James Carnes and Melissa Carnes reside in Mission Hills, Kansas, which is also the principal place of administration of their revocable trusts.

The CFPB previously sued Integrity Advance and James Carnes in 2015 for lying to consumers about the cost of short-term loans. They also withdrew money from borrowers’ accounts despite not having permission from consumers to do so. The CFPB’s lawsuit resulted in an agency order requiring Integrity Advance and James Carnes to pay $38 million to make harmed consumers whole. The order also required Integrity Advance to pay a civil money penalty of $7.5 million and James Carnes to pay a civil money penalty of $5 million.

In the fraudulent transfer action filed in April 2023, the CFPB alleged that James Carnes and Melissa Carnes transferred funds to hinder, delay, or defraud the CFPB, in violation of the Federal Debt Collection Procedures Act. Between 2013 and 2015, James Carnes fraudulently transferred $12.3 million to his wife through a series of revocable trusts. James Carnes was co-trustee of the trusts, so he could access their funds for personal and business use.

Enforcement Action

The CFPB has the authority to bring actions under the Federal Debt Collection Procedures Act against defendants who engage in fraudulent transfers to avoid paying a debt owed to the CFPB.

Today’s order, if entered by the court, would require James and Melissa Carnes to pay $7 million of an imposed $12.3 million judgment, with the remaining amount suspended due to demonstrated inability to pay more. The payment will be applied toward satisfying James Carnes’ existing $43 million judgment, which includes consumer redress and civil money penalties. The CFPB will continue its efforts to collect the remaining amount of the $43 million judgment.

Read today’s proposed stipulated judgment and order.

Consumers can submit complaints about financial products and services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).

Employees of companies who believe their company has violated federal consumer financial laws are encouraged to send information about what they know to whistleblower@cfpb.gov.


The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive. For more information, visit www.consumerfinance.gov.