Payza Website Taken Down By Authorities
Payza is a common method of payment for all types of scams. Their activities have finally caught up with them. Authorities have taken down the Payza.com website as part of an indictment of the company. MH Pillars, Ltd., doing business as Payza, has been indicted by a federal grand jury in the District of Columbia on charges alleging they operated an Internet-based unlicensed money service business that processed more than $250 million in transactions.
As some of you may be aware of already, Payza is currently dealing with some legal matters in the United States. We cannot give any specific details at this time, but please be aware that this is an accusation and it is NOT evidence of guilt. Right now, we are working on a solution to this, and the technical issues we are experiencing, and we do not want you to worry. In the meantime, Payza’s services are fully operational and available at our new domain payza.eu. – Source Payza Twitter Account
Here are the highlights of why Payza is under indictment:
The defendants, FIROZ PATEL and FERHAN PATEL, operated a money transmitting business that operated without the necessary state licenses and knowingly transmitted funds that were derived from illegal activity.
Money Transmitting Businesses
A money transmitting business was one that transferred funds on behalf of the public by any and all means, including electronic transfers within the United States or to locations abroad.
In most states or jurisdictions, operating a money transmitting businesses without a license was punishable as a misdemeanor or a felony. The failure to obtain a license in such jurisdictions is a federal felony offense. Under District of Columbia law, money transmission businesses had to obtain a license from the Superintendent of the Office of Banking and Financial Institutions of the District of Columbia, and the failure to do so was a felony.
Federal law also required money transmitting to be registered with the Financial Crimes Enforcement Network (” FinCEN”). The failure to register with FinCEN is a federal felony offense.
Federal law barred money transmitting businesses from transmitting funds that were known to be derived from a criminal offense or intended to be used to promote unlawful activity.
The Defendants and their Associated Entities
From in or about March 2012 through the present, defendants FlROZ PATEL and FERHAN PATEL owned, controlled, managed, supervised, and directed a money transmission business, co-conspirator MH PILLARS, LTD., doing business as Payza (hereinafter coconspirator “Payza”), which was incorporated in the United Kingdom.
Defendant FIROZ PATEL is a Canadian citizen. Defendant FIROZ PATEL acted as the Executive Vice-President of co-conspirator Payza and, in that capacity, had the authority to bind the company.
Defendant FERHAN PATEL is a Canadian citizen. Defendant FERHAN PATEL acted as the Chief Compliance Officer of co-conspirator Payza and, in that capacity, had the authority to bind the company.
In addition to co-conspirator Payza, defendants FIROZ PATEL and FERHAN PATEL owned, controlled, managed, supervised, and directed co-conspirator AlertPay Inc. (hereinafter co-conspirator “AlertPay” ) and co-conspirator Ecommerce Worldwide, doing business as Egopay, Inc. (hereinafter co-conspirator “Egopay”). Co-conspirators AlertPay and Egopay ceased operations in or about 2012 and 2015 respectively.
Co-conspirators Payza, AlertPay, and Egopay were variously touted, through their websites, as specializing in e-commerce processing, corporate disbursements, and remittances for individuals and businesses around the world. Co-conspirators Payza, AlertPay, and Egopay were in the business of transmitting funds via their websites for the public throughout the United States and elsewhere. Defendants FIROZ PATEL and FERHAN PATEL failed to obtain licenses to operate co-conspirators Payza, AlertPay, and Egopay in the District of Columbia and in every state that required them to do so.
Co-conspirators Payza, AlertPay, and Egopay transmitted funds that defendants FIROZ PATEL and FERHAN PATEL knew were derived from criminal offenses.
Fraudulent and Criminal Money Transmitting Business Customers
Pyramid schemes were scams in which the organizers promised the victims profits based primarily on recruiting others to join the scheme. Because little or no wealth was created, few or no products were sold, minimal or no investments were made, and few or no services were provided, the schemes eventually failed. Minimal or no product Mutli-Level Marketing (a/k/a “MLM”) scams and Money Cycler scams (a/k/a “Cyclers”) were types of pyramid schemes.
A Ponzi scheme purported to be an investment opportunity, but payouts came almost exclusively from new investor money instead of the returns of the underlying investment, if any. Ponzi schemes inevitably collapsed as investors ran out of new victims to recruit and the underlying investment generated insufficient or no revenue to sustain the scheme. A High Yield Investment Program (a/k/a “HYIP”) was a type of Ponzi scheme.
– Source justice.gov
Now that cryptocurrencies are popular, this type of payment processor is not so much in need. It is good to see the scammers friend Payza taken down.