Tagged: payment processors

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Payza co-founder Ferhan Patel wants release, brother still at large

Despite initially consenting to detention, Payza co-founder Ferhan Patel wants out.In a Motion to Revoke Detention Order filed on April 19th, Patel has asked the court to either outright release him, or in the alternative allow him to stay with his brother-in-law in New York.In justification of his release, Patel’s attorney claims he’sa fully employed Canadian citizen with no prior criminal record or history of failures to appear.He has no alcohol or substance abuse issues.Mr. Patel has been married since 2005, and he has a nine-year old son and five-year old girl from that union.He holds an MBA from a university…

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Payza terminate US payment processing, status of client funds unknown

The latest move by Payza co-founder and fugitive Firoz Patel, has been to terminate payment processor services to US residents.It appears now, like Patel, Payza itself is on the run from US authorities.Payza’s abandoning of US clients was announced via email on March 23rd.Dodging the $250 million money laundering lawsuit and Patel’s indictment and fugitive status, Payza simply states their “previous domain is no longer accessible”.Payza clients, many of whom US regulators allege are criminals, scammers and child pornography rings, have been instructed to use the company’s new EU domain.Firoz Patel is believed to have hastily set up Payza’s EU domain…

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How are Payza continuing to provide payment processor services?

Within 24 hours of the Department of Justice and Homeland Security seizing Payza’s .com domain, the payment processor reemerged on a .eu domain.The “payza.eu” domain was registered back in 2012. Payza only activated in response to the domain seizure however on March 21st.Payza’s parent shell company PH Millars is listed as the owner of the domain. The domain itself is registered through the US registrar GoDaddy.Whereas Payza’s clients, many of whom the DOJ and HSI allege are criminals and peddlers of child pornography, were unable to access their wallet balances, after the .eu switch they were again able to transfer funds.Considering…

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Payza website offline, domain seized by DOJ and HSI

US authorities have seized the Payza and AlertPay websites, as part of forfeiture in a $250 million money laundering case filed against co-founders Firoz and Ferhan Patel.The seizures appear to have taken place sometime in the last twenty-four hours, with visitors to both sites either being timed out or redirected to a DOJ/HSI seizure page:As at the time of publication the status of client deposits with Payza is unclear.Over the past few years Payza had slowly been transitioning into a cryptocurrency exchange. In a Facebook post published less than 24 hours ago, Payza boasted it was now accepting over 50 cryptocurrencies…

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Inside Payza & the Patel brothers’ multi-million dollar criminal enterprise

The specifics of Payza’s business operations have always been murky.We knew the company was co-founded by brothers Firoz and Ferhan Patel, Canadian citizens, who operated Payza via the UK shell company MH Pillars.Beyond that though specifics have been elusive… up until now.Following a federal indictment of the Patel brothers earlier this month, the scope and magnitude of their criminal enterprise have been revealed.The federal indictment states the Grand Jury hearing the case was sworn in on November 3rd, 2016.The indictment however wasn’t returned until March 8th, 2018.In it, Firoz and Ferhan Patel stand accused of operatinga money transmitting business that operated without…

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Payza co-founders indicted, facing $250 million money laundering case

For years Payza has been the defacto payment processor darling of the MLM underbelly.Founded by brothers Firoz and Ferhan Patel, who weren’t above personally promoting their partnership with Ponzi schemes, Payza was operated out of Montreal, Canada. Both Firoz and Ferhan Patel are Canadian citizens.Earlier this month the Patel brothers were indicted by a federal grand jury in the District of Columbia.Ferhan Patel has since been arrested while Firoz Patel is still on the run.In addition to eagerly assisting MLM underbelly fraudsters, Payza and the Patel brothers also serviced “child pornography rings and other criminal enterprises”.According to the indictment, Payza’s customers included…

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My Advertising Pays processor lawsuit dismissed

Last December the My Advertising Pays sued payment processor VX Gateway for $59.6 million dollars.The Ponzi scheme alleged VX Gateway was wrongfully withholding investor funds and sought recovery.VX Gateway opposed legal action in Texas and sought to the have the lawsuit dismissed in favor of arbitration in Panama.A decision was made on the dismissal  motion on May 15th, with ruling made in favor of VX Gateway.The decision was made based on a merchant agreement between My Advertising Pays and VX Gateway.VX-Panama and MAP entered into a Merchant Service Agreement (the“Agreement” referred to in the First Amended Complaint).The Agreement provides that it…