[author: Jackie Odum]
On February 10, 2021, the Federal Trade Commission (FTC) announced settlements with two payment processors and two individuals, resolving claims regarding an alleged credit card laundering program carried out in violation of the Federal Trade Commission Act ( FTC Act), 15 USC § 53 (b), and the Telemarketing and Consumer Fraud and Abuse Act (Telemarketing Act), 15 USC §§ 6101-08.
Orders made with payment processors and individuals (here and here) resolve an FTC lawsuit that has been pending since 2017 in U.S. District Court for the District of Arizona. The FTC continues to litigate against four other defendants for their role in the alleged scheme.
According to the FTC, businesses and individuals participated in a credit card laundering program to obtain and maintain fraudulent merchant accounts which, in turn, enabled them to process nearly $ 6 million in credit card fees. credit. The stipulated orders would force businesses and individuals to collectively pay more than $ 10.8 million, although those pecuniary judgments were suspended due to defendants’ inability to pay. In addition, at least one of the people must permanently stop working in payment processing.
