It's a scam, and all their threats are false and illegal. Contrary to what "lawyergal" posted above, I believe that this scam is being run by the Litigation Consulting Service/NAAIB/MoreStar crooks in Maryland (although under their MoreStar guise, they claim to be in Cleveland, Ohio). Here's some background on these crooks:
http://budhibbs.com/debtcollectorpages/NAAIB.htmThe bottom line is, these are criminals trying to steal your money. Ignore their illegal threats and report their attempts to extort money from you to all these federal and state law enforcement agencies:
1) The U.S. Secret Service is responsible for protecting the country's financial infrastructure and payment systems from international and domestic threats. Call or write your local Secret Service field office to alert them to the details of this attempted extortion. The addresses and phone numbers for the local Secret Service field offices are listed at
http://www.secretservice.gov/field_offices.shtml or in your phone book.
2) Alert the FBI at
https://tips.fbi.gov Be sure to tell the FBI that you are being targeted by extortionists over the phone and give them all the details.
3) File a complaint with the Ohio Attorney General at
http://www.ag.state.oh.us/citizen/consumer/complaints.asp or call 877-244-6446
4) File a complaint with your state's attorney general, the contact information for whom is at
www.naag.org5) File a complaint with your local police. Most police departments will take a report over the phone. Be sure to tell them that you're being targeted by an extortionist and give them all the details.
6) File a complaint with the Federal Trade Commission
https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=enIf these criminals call back, tell them that they aren't getting any money from you and that you've reported their scam to federal and state law enforcement. They will react with the usual moronic, false threats. If possible, try to save any voice messages they leave and, if legal in your state, record their calls if you speak with them. (Inexpensive phone recorders are available at Radio Shack-type stores.)
Hope this helps.