Debt Collector Is Indicted

[David A. Szwak]

Debt Collector Is Indicted

A Suffolk County grand jury has indicted a debt collection company linked to Steven Hoffenberg on charges of fraud and grand larceny.

The indictment against the Diversified Credit Corporation is the first criminal charge focusing primarily on debt-collection abuse by a company associated with Mr. Hoffenberg, a prosecutor with the Suffolk District Attorney's office said.

A four-month investigation turned up about $1 million that was collected by Diversified but never turned over to the small businesses that hired the company, Nina Pozgar, director of the District Attorney's white-collar crime unit, said.

Mr. Hoffenberg had a brief stint as publisher of The New York Post and started a newspaper called Her New York, aimed at working women. The newspaper closed last month.

Although Mr. Hoffenberg is not named in the indictment, which was handed up late last month, five officers of Diversified are.