Our last update on the Payza indictments was Firoz Patel pleading not guilty back in January. Since then negotiations have been going on behind the scenes, leading towards what will likely be a plea bargain.
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Payment processor Allied Wallet has been sued by the FTC for violations of the FTC Act. The regulator alleges Allied Wallet assisted “business opportunity and coaching scams, pyramid schemes, and unlawful debt collection operations” with illegally charging over $110 million to consumer accounts.
Payza, one of the three parties the Zeek Receiver is pursuing over a $13.1 million clawback, has agreed to a consent judgment for the full amount owed.
Payza co-founder Firoz Patel has pleaded not guilty to charges relating to money laundering. Patel also entered a plea of not guilty on behalf of Payza’s parent company, MH Pillars.
After roughly ten months of being a fugitive, Firoz Patel is turning himself in. Last March Firoz and his brother Ferhan were indicted on money laundering charges related to Payza. The DOJ alleged that through Payza, the Patel brothers laundered over $250 million dollars for “child pornography rings and other criminal enterprises”. Some of the criminal [Continue reading…]
New York isn’t too happy with Feroz Patel’s efforts to keep Payza afloat. On October 24th the New York State Department of Financial Services issued Payza, founders Firoz and Ferhan Patel and associated companies MH Pillars, OboPay and MH Pillars with a cease and desist.
In an attempt to retain almost a million dollars fraudulently obtained through MOBE, Peoples Trust in Canada decided the preliminary injunction didn’t apply to them. This prompted a lawsuit against Peoples Trust by the MOBE Receiver, which is currently playing out in the Superior Court of Quebec.
A request from Qualpay to keep $6.3 million stolen from MOBE victims has been denied. The TRO in place against MOBE requires all funds related to the fraudulent business be turned over. Rather than hand over the $6.3 million it processed for MOBE, Qualpay instead sought an exemption from the TRO. The processor argued that [Continue reading…]
Firoz Patel’s Payza tax fraud bill has claimed to $15.2 million, following adjusted undeclared income of $26.2 million USD. Revenu Québec previously pegged Patel’s unpaid taxes at $10.8 million, however an ongoing investigation has revealed additional undeclared income.
Following his indictment earlier this year, Payza co-founder Firoz Patel went into hiding. Now, if a June 12th Facebook status update is to be believed, Patel has resurfaced in Quebec, Canada.