CEO Of Credit Card Processing Company Charged In $19 Million Credit Card Laundering Scheme
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced a superseding indictment today against BRANDON BECKER, the former CEO of CardReady, LLC (“CardReady”), on charges of fraudulently operating a credit card laundering scheme that enabled access to the credit card system for certain deceptive businesses, including an underlying telemarketing scheme. From about 2012 through 2015, according to the Indictment, the telemarketing scheme raised over $19 million from thousands of customers who received cold calls promising to reduce their overall debt burdens for fees of up to $1,495. The scheme resulted in many complaints of fraud and deceptive tactics and requests for millions of dollars in refunds and chargebacks. The charges include that, from approximately 2012 through 2015, BECKER and his co-conspirators enabled the scheme by creating dozens of sham merchant accounts and false merchant applications, defrauding an associated credit card processing company and a federally insured bank into processing more than $19 million in payments for the scheme.
BECKER was originally arrested at Los Angeles International Airport on September 22, 2019. He is scheduled to appear for arraignment on the instant charges on October 17, 2019, before United States District Judge Loretta A. Preska.
U.S. Attorney Berman said: “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.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “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.”
Read more: https://www.justice.gov/usao-sdny/pr/ceo-credit-card-processing-company-charged-19-million-credit-card-laundering-scheme