Payza & Patel bros served cease & desist in New York (updates)
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.
The DoFS cease and desist notice alleges that through Payza, Firoz and Patel are illegally providing money transmission services to New York residents.
The DoFS claim Payza has transmitted over $3 million on behalf of New York residents.
The Department has determined that Firoz Patel and Ferhan Patel owned, controlled, managed, supervised and directed the unlicensed money transmission business of Payza, Obopay and MH Pillars, Ltd.
The Department has determined that the Persons transmitted more than $3,303,462 for, or on behalf of, persons residing or located in New York State and received fees in excess of $121,918.
With neither Payza or the Patel brothers being licensed, the transfers were unlicensed and in violation of New York Banking Law.
A cease and desist to Payza was signed off on by the Superintendent of Financial Services and issued on October 24th.
In related news, the Payza money laundering indictment case docket suggests Firoz Patel is either in custody or will be soon.
A November 13th minute entry on the docket reads:
The parties are still working on bond conditions for DEFENDANT FIROZ PATEL.
I have been unable to ascertain whether Firoz has been arrested. Last we heard he was hiding out in Canada.
Firoz’s brother Ferhan was arrested at the time of the indictment. He has since been released on personal recognizance pending trial.
At the time of publication Payza’s post-indictment website address was returning a server error.