Prosecutors Defend Time-Served Plea Deal for Allied Wallet COO

Federal prosecutors are trying to persuade a federal district court judge in Boston that a time-served sentence is sufficient for Allied Wallet’s former chief operating officer.

Mohammad “Moe” Diab agreeed to plead guilty bank fraud conspiracy in August. He was accused of helping to deceive banks into processing more than $150 million worth of credit and debit card payments on behalf of merchants involved in high-risk or prohibited businesses, like online gaming, debt collection, and payday lending.

Judge Nathaniel M. Gorton said earlier this month that he intended to reject the plea deal and instructed the parties to file a ...