FTC Sues Allied Wallet for Providing Scams Services and Siphons $110 Million From Investors
The Federal Trade Commission (FTC) has recently sued the payment processor called Allied Wallet after assisting a fraudulent scheme that stole more than $110 million from consumers around the world. The information was released in a statement by the FTC on May 21st.
FTC Sues Allied Wallet
According to the statement released by the FTC, Allied Wallet, its CEO and owner Ahmad Khawaja and other officers have agreed to settle Federal Trade Commission charges that they have assisted scams by processing fraudulent transactions. Surprisingly, the owners of Allied Wallet knew the transactions were fraudulent.
The FTC explains that Allied Wallet knew that the payments that the company processed were fraudulent. That means that there were merchants that were subject to law enforcement action by the FTC and also the Securities and Exchange Commission (SEC). Some of these merchants included Stark Law, TelexFree and MOBE, among others.
The FTC has also helped different merchants hide their fraud from banks and credit card networks. The deceptive practices included creating fake foreign shell companies to open accounts in their names and many other things. They were also working to evade card network rules.
The report reads as follows:
“The order against Khawaja and his companies, AlliedWallet, Inc. Allied Wallet, Ltd., GTBill, LLC, and GTBill Ltd., imposes a $110 million equitable monetary judgment. After Khawaja turns over a residence in Los Angeles, California, the remainder of the judgment will be suspended due to inability to pay.”
Allied Wallet defendants are now prohibited from having any work related to payment processing and money making opportunities. That means that they cannot be engaged in credit card protection, identify theft protection, debt management, timeshare resale and more. They will also have to report changes in personal details and business activity they conduct.
Allied Wallet and Khawaja have also donated more than $6 million to both Clinton and Trump when they were running for president, according to Behind MLM.