Four settle FTC credit card laundering charges

The Federal Trade Commission on Wednesday announced the Commission had reached settlements with four defendants charged with helping to launder millions of dollars in credit card charges through fraudulent merchant accounts. The settlement orders permanently ban Jay Wigdore, Electronic Payment Solutions of America, and Electronic Payment Services from payment processing and telemarketing. A previously-entered stipulated order against Michael Peterson bans him from payment processing or acting as an independent sales organization or sales agent in the payment processing industry.

According to the FTC, the defendants assisted a deceptive operation known as Money Now Funding to obtain and maintain merchant accounts that allowed the operation to process almost $6 million through the credit card networks. The FTC charged Wigdore, Electronic Payment Solutions of America, and Electronic Payment Services, and Peterson with violating the Federal Trade Commission Act and the Telemarketing Sales Rule.

Monetary judgments of $462,925 against Wigdore, $4.6 million against Electronic Payment Solutions of America, and Electronic Payment Services, and $5.7 million against Peterson have been suspended due to the defendants’ inability to pay.