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Business: Services
State rescinds CAMCO funds
By SARAH ROBERTS, Rockford Register Star
>> Click here for more about Sarah
ROCKFORD -- As the federal government prepares to force CAMCO to refund millions to consumers, the state said it is rescinding the company's multimillion-dollar tax incentive package and asking for a refund of $575,000 in grants.
The state was scheduled to give Capital Acquisitions and Management Co. $3.7 million in tax credits during the next decade, with the first payment coming at the end of this year. That money was contingent on the company creating at least 300 jobs and $2.5 million in private investment by the end of December, and, at minimum, maintaining those numbers for each of the next nine years.
Because CAMCO is no longer in operation and not employing workers, it is in violation of its grant agreement with the state, according to Andrew Ross, spokesman for the Department of Commerce and Economic Opportunity.
CAMCO is closed indefinitely after the Federal Trade Commission raided and shut down the company's downtown Rockford headquarters on Dec. 6. The FTC plans to ask a judge to order CAMCO to refund thousands of consumers and is considering whether to permanently ban the company and its top officials from ever working in the debt-collection industry again.
"We were aware of what the FTC did and have obviously been paying attention to what is going on," Ross said. "We won't allow any of the taxpayers' money to be misspent."
In the past two years, the state gave CAMCO $500,000 to purchase its headquarters at 303 N. Main St. and $75,000 in training grants. The state is now asking for that money back.
CAMCO is entitled to both informal and formal hearings if it wishes to challenge the state's request.
If the state is unable to contact the company, or the company refuses to pay, the state will turn the case over to the attorney general to pursue the refund.
The city of Rockford, meanwhile, is still trying to determine whether it has any legal standing to recoup the $250,000 it paid CAMCO in the past two years. The company was scheduled to receive $125,000 annually if it created 50 jobs a year, with 51 percent of those jobs going to low- to moderate-income residents.
"We certainly won't be paying them anymore," mayoral spokesman John Strandin said.
Contact: [email protected]; 815-987-1369
Business: Services
State rescinds CAMCO funds
By SARAH ROBERTS, Rockford Register Star
>> Click here for more about Sarah
ROCKFORD -- As the federal government prepares to force CAMCO to refund millions to consumers, the state said it is rescinding the company's multimillion-dollar tax incentive package and asking for a refund of $575,000 in grants.
The state was scheduled to give Capital Acquisitions and Management Co. $3.7 million in tax credits during the next decade, with the first payment coming at the end of this year. That money was contingent on the company creating at least 300 jobs and $2.5 million in private investment by the end of December, and, at minimum, maintaining those numbers for each of the next nine years.
Because CAMCO is no longer in operation and not employing workers, it is in violation of its grant agreement with the state, according to Andrew Ross, spokesman for the Department of Commerce and Economic Opportunity.
CAMCO is closed indefinitely after the Federal Trade Commission raided and shut down the company's downtown Rockford headquarters on Dec. 6. The FTC plans to ask a judge to order CAMCO to refund thousands of consumers and is considering whether to permanently ban the company and its top officials from ever working in the debt-collection industry again.
"We were aware of what the FTC did and have obviously been paying attention to what is going on," Ross said. "We won't allow any of the taxpayers' money to be misspent."
In the past two years, the state gave CAMCO $500,000 to purchase its headquarters at 303 N. Main St. and $75,000 in training grants. The state is now asking for that money back.
CAMCO is entitled to both informal and formal hearings if it wishes to challenge the state's request.
If the state is unable to contact the company, or the company refuses to pay, the state will turn the case over to the attorney general to pursue the refund.
The city of Rockford, meanwhile, is still trying to determine whether it has any legal standing to recoup the $250,000 it paid CAMCO in the past two years. The company was scheduled to receive $125,000 annually if it created 50 jobs a year, with 51 percent of those jobs going to low- to moderate-income residents.
"We certainly won't be paying them anymore," mayoral spokesman John Strandin said.
Contact: [email protected]; 815-987-1369