The Department of Justice (DOJ) busted a former CEO of a credit card processing company for allegedly operating a credit card laundering scheme.
The U.S. Attorney for the Southern District of New York, Geoffrey Berman filed a lawsuit against former CardReady CEO Brandon Becker on Friday.
In the indictment, the U.S. Attorney alleged that Becker created sham merchant accounts to allow access to a credit card processing system for certain deceptive businesses including a telemarketing scheme.
Becker through its telemarketing scheme allegedly bilked more than $19 million from thousands of consumers who paid fees of up to $1.495 each. His victims believed that the defendant will help them reduce their total debt. However, the defendant failed to deliver his promise, which resulted in multiple complaints of fraud and deceptive tactics as well as request for refunds and chargebacks.
U.S. Attorney Berman accused Becker and his co-conspirators of operating a credit card laundering scheme. The U.S. Attorney alleged that they defrauded an associated credit card processing company and a federally insured bank into processing more than $19 million in payments for the scheme.
“As our society relies ever more on credit cards and electronic payments, both individual citizens and corporations have every right to expect truthfulness and fair dealing in the marketplace – not fraud and deceit,” said U.S. Attorney Berman.
On other hand, FBI Assistant Director-in-Charge William F. Sweeney Jr. commented, “People cringe when they see a telemarketer calling because they fear being scammed. This investigation is proof that fear isn’t misplaced. It also shows those who are allegedly scamming innocent victims aren’t getting away with their crimes. The FBI and our law enforcement partners are paying attention, and maybe one day the phone ringing won’t mean people losing their money.”
Authorities originally arrested Becker at the Los Angeles Airport on September 22, 2019. He is facing four counts of criminal charges– conspiracy to commit wire fraud and bank fraud, conspiracy to make false statements to a bank, wire fraud, and bank fraud. He is scheduled to appear for arraignment on the allegations against him on October 17, 2019.