payment processors @ BehindMLM

Known throughout the MLM underbelly for it’s prohibition of Ponzi and pyramid schemes, PayPal nonetheless still pops up as a payment processor for various schemes. The problem with PayPal’s current fraud detection mechanisms is that, by the time it’s detected, the damage has already been done or PayPal quietly freeze the account. No information is [Continue reading…]

Last month My Advertising Pays filed a lawsuit against payment processor VX Gateway. According to My Advertising Pays, VX Gateway, Celia Dunlop and Timothy Mackay stole $59.6 million, money that My Advertising Pays in turn stole from affiliates through Ponzi fraud. The case is making its way through the legal system, with both parties currently [Continue reading…]

Following a hearing on December 7th, the Temporary Restraining Order My Advertising Pays had sought against VX Gateway has been denied.

I checked the docket earlier and as of yet there’s no news regarding today’s TRO and preliminary injunction hearing. In the last twenty-four hours however, VX Gateway has filed a response in opposition to My Advertising Pay’s motion.

While scammers are happy to defraud the general public out of millions of dollars each year, turns out they themselves don’t like being scammed. Yeah I know, shocking…

My Advertising Pays initially launched in 2013. The business model was simple: My Advertising Pays affiliates invested $49.99 on the promise of an advertised $60 ROI. By the end of 2015 My Advertising Pays began to show signs of collapse. The company kept itself afloat however by paying US affiliates a fraction of the $60 [Continue reading…]

The next chapter in the TelexFree Trustee, PaymentWorld, Payza and VictoriaBank saga is an opposition filing by PaymentWorld. As far as the TelexFree Trustee is concerned, PaymentWorld US, PaymentWorld Limited and PaymentWorld LTD SRL are all the same entity. PaymentWorld US and PaymentWorld Moldova have the same management and oversight personnel. PaymentWorld US however are [Continue reading…]

The Zeek Rewards, Payza and VictoriaBank dispute has been running for some time now. At the center of the dispute is $13 million dollars in stolen Ponzi funds, currently frozen in a Bank of New York Mellon account. The Zeek Receiver wants these funds returned to Rex Venture Group, in order for them to be [Continue reading…]

Following the regulatory shutdown of Liberty Reserve in May, 2013, co-founder Vladmir Kats was the first executive to enter a guilty plea. In November, 2013, Kats plead guilty to “money laundering and operating an unlicensed money transmitting business”. Commenting on the plea at the time, Acting Assistant Attorney General Mythili Raman and U.S. Attorney Preet Bharara [Continue reading…]

In what I believe is the first case of a payment processor founder being criminally charged since I started BehindMLM, Arthur Budovsky Belanchuk, founder of Liberty Reserve, has been sentenced to 20 years in prison.