Aiding Scam Leads to FTC Restrictions for Payment Processor

The Federal Trade Commission filed an administrative complaint against Electronic Payment Systems and its owners, John Dorsey and Thomas McCann, over allegations of opening credit card processing merchant accounts for fictitious companies on behalf of a business opportunity scam, according to a Tuesday news release.

The FTC alleged that Electronic Payment Systems employees ignored warning signs of the credit card laundering, which totaled millions of dollars from 2012 to 2013, and advised the business opportunity scam Money Now Funding on how to evade detection, the FTC said.

Electronic Payment Systems and its owners have accepted restrictions in a consent agreement ...