Allied Wallet Payment Processing Scam Leads to Third Guilty Plea

The former chief operating officer of Allied Wallet Ltd. has agreed to plead guilty to conspiracy to commit bank and wire fraud in connection with a $150 million payment processing scheme.

Mohammed “Moe” Diab appeared in the US District Court for the District of Massachusetts on Tuesday to enter his plea before Judge Nathaniel M. Gorton.

Diab and his co-conspirators were accused of engaging a scheme to facilitate high risk or prohibited transactions for shady merchants using sham companies and phony billing descriptors. According to prosecutors, bank card issuers and financial institutions that were members of card brand networks, like ...