As both AMG services and CLK management continued to grow at a substantial rate so did the amount of unwanted attention. Tucker knew this would be an issue and in 2008 managed to arrange an essentially fake sale of his business with the Miami Tribe that was based out of Oklahoma. This “sale” of his business allowed Tucker to retain management over his 3.5-billion-dollar company while shielding him from lawsuits because of the tribal immunity gained through the "transfer" of ownership. Aside from the illegal loans, and fake sale of his business the investigations also revealed Tucker had been understating his profits by the millions for years with not only his businesses income, but also his personal income. Tucker is now serving nearly 17 years in federal prison and many believe even that does not give justice to the millions of Americans lives he devastated.
|Example of extremely high interest loan found in Tuckers contract|
Friedman’s theory of individualism basically states the main goal of a business is to make as much profit as possible while staying within the law. Although Scott tucker and his business were very good at making profit, overall an individualist would most likely label this case as unethical. As noted above Tucker broke numerous laws and was even convicted on 14 different accounts including racketeering, wire fraud, and money laundering. This is not only illegal, but also most likely resulted in a net loss because of the billions of dollars himself and his company had to pay back to the government which goes against everything an individualist believes in.
Overall the core idea of utilitarianism is to maximize happiness in the greatest number of people possible and if that outweighs those who are not happy than it is still considered ethical. If a utilitarian was viewing this case, there is no doubt they would consider it to be unethical. The overall goal of Tucker and his company was to make a profit at the cost of others around him. This means for the nearly 4.5 million customers his company supplied loans to it only resulted in happiness for about the 600 employees within his company including himself and possibly a small percentage of the people who found the loan useful and the high interest rates not specified in the contract as reasonable. Although someone may argue the loans must have been beneficial to some of the consumers it still does not outweigh the millions of other people and their family’s that were lied to and put into financially unstable situations by Tucker and his company.
Kantianism is a theory that revolves around four main principles that state always act rationally, allow and help others to make rational decisions, respect people, their autonomy, and their individual needs and differences, and be motivated by good will. From a Kantian perspective this case would be viewed as unethical because Tucker did not respect the people he was doing business with, did not provide them with the information necessary to make rational decisions and above all used his consumers as a mere means to make profit. One core example of these issues can be seen in the legally binding contracts between Tucker and his clients which didn't even contain the correct information. This also goes against Kantian formula of humanity which states it is not morally permissible to use people as a mere means to an end. Tucker was clearly not motivated by good will and would not be viewed ethically by a Kantian.
Virtue theory is based upon four core values which include courage, honesty, temperance, and justice. When analyzing this case from a virtue theory perspective it is also viewed as unethical. CLK Management, Scott Tucker, and AMG Services did not have the courage to tell their customers the truth about their loans. They were not honest with their contracts and lied directly to their consumers, the expectations they set were unreasonable for someone in a financial position so bad they needed a loan to begin with, and there was no justice involved for the victims these companies targeted which all shows how unethical this business truly was from a virtue theorist standpoint.
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Pagliery, Jose. “Race Car Driver Scott Tucker Arrested in Alleged $2 Billion Payday Lending Empire.” CNNMoney, Cable News Network, 10 Feb. 2016, money.cnn.com/2016/02/10/news/payday-lending-scott-tucker-arrest/index.html.
Press, Associated. “Pro Racecar Driver Scott Tucker Gets over 16 Years in Prison.” ABC News, ABC News Network, 5 Jan. 2018, abcnews.go.com/amp/Sports/wireStory/pro-racecar-driver-scott-tucker-16-years-prison-52172216.
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