https://news.bitcoin.com/ice-agency-charges-payza-and-two-canadian-citizens-with-money-laundering/
According
to a press statement released by ICE, two Canadian brothers and the firm,
Payza, are facing legal troubles for unlicensed money services and alleged
money laundering. The firm Payza is a payment processor that utilizes bitcoin
and other currencies for daily settlement operations. Payza allegedly processed
over $250 million USD worth of proceeds stemming from Ponzi schemes, and other
criminal activities. The ICE announcement was revealed by the U.S. Attorney
Jessie K. Liu and ICE special agent Patrick J. Lechleitner. The two men facing
charges alongside Payza are two Montreal, Québec residents Firoz Patel (43) and
Ferhan Patel (37).
“The
arrest and indictments, in this case, demonstrate that we will vigorously
enforce laws meant to protect the American consumer,” explained U.S. Attorney
Liu.
The
Patel brothers face conspiracy charges that consist of operating an unlicensed
money transmitting business and violating anti-money laundering program
requirements. If convicted, each of the brothers face a maximum sentence of
more than 25 years. Payza and it’s parent company MH Pillars Ltd. is being
charged with one count of illegal money transmission.
The
indictment alleges that the brothers and Payza participated in criminal
activities from March 2012 until the present. The ICE agency asserts that the
brothers through Payza’s services knowingly transmitted funds that were tied to
illegal activities.
"Despite receiving
cease and desist letters from various states, and being told by a consultant
that operating a money transmission business without the necessary licenses was
a crime, Firoz and Ferhan Patel continued their illegal activity, the
indictment alleges,” ICE details in the press release.
The
ICE report says Payza’s customers participated in multiple types of pyramid
schemes and allegedly the Patels opened bank accounts in the United States and
laundered their illegal proceeds through those accounts. The law enforcement
agency has seized properties and funds tied to these charges. ICE has already
confiscated $10Mn USD and states the investigation is still underway. The Patel
brothers’ case follow other charges against Americans for illegal money
transmission and money laundering crimes.