- Digital payment processor Payza has been charged by the U.S. government with running an unlicensed money services business.
- Two Canadian brothers and their money-service business allegedly processed $250 million in transactions without a license on behalf of customers, including Ponzi schemers and a child pornography website, according to U.S. prosecutors.
- One of the founders of the firm, Ferhan Patel, has been arrested, while his brother, co-founder Firoz Patel, remains at large.
The Patel brothers allegedly operated the money-service business from 2012 through the present without state licenses, and prosecutors said they knew the money they transmitted was derived from illegal activity.
The court filing lists several charges: conspiracy to operate an unlicensed money transmitting business, conspiracy to launder money, and operating an unlicensed money transmitting business in the District of Columbia.
- Fehran was arrested Sunday in Detroit. He made his first appearance in federal court on Monday and was being held pending further proceedings in Washington, prosecutors said.
Court documents indicate that Ferhan Patel was arrested in Michigan and will be transported to Washington D.C. A message sent to Firoz Patel by way of his personal website was not returned by press time.