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Tag: Ferhan Patel

  • Indicted Payza Announces ‘Restructuring’

    As one of its operators sits in a Michigan federal prison and the other is listed “at large” by U.S. authorities, Payza today announced a purported “restructuring” as a “European service” that has ceased serving U.S. customers.

    “This means that no transactions are allowed for US members at this time and Payza will no longer be servicing businesses registered in the US, neither providing US payout services or US based withdrawals,” Payza said in a Blog post accessible via Twitter.

    Precisely who is running things at the company is unclear. The Blog post had a byline of “Payza Writer.”

    Ferhan Patel, 37, is listed as an inmate at the federal correctional institute in Milan, Mich. He was arrested Sunday in Detroit. Firoz Patel, his brother and co-defendant in a major money-laundering case announced Tuesday by U.S. prosecutors, appears neither to have surrendered or been arrested. Firoz Patel is 43. The brothers are citizens of Canada and reportedly lived in the Montreal area.

    The office of U.S. Attorney Jessie K. Liu of the District of Columbia confirmed Wednesday that Payza’s dotcom domain had been seized.

    Prosecutors said Payza had helped fuel Ponzi schemes, pyramid schemes, a child-porn site and other criminal activities. Homeland Security Investigations is leading the probe.

    Payza and a predecessor company known as AlertPay have been referenced in Ponzi-scheme litigation dating back at least to 2008’s AdSurfDaily Ponzi scheme, a $119 million fraud. More recent “programs” with ties to Payza include Traffic Monsoon and Zeek Rewards.




  • BULLETIN: Payza, Patel Brothers Indicted; Feds Move To Forfeit Payza.com Domain Name

    BULLETIN: A grand jury in the District of Columbia has indicted the operators of Payza and moved for the forfeiture of the Payza.com domain name.

    Ferhan Patel, 37, has been arrested in Detroit and is being held.  Firoz Patel, 43, is listed by U.S. authorities as “at large.” The Payza.com domain name appears still to be operational.

    Charges include money-laundering and operating an unlicensed money-service business that processed payments for Ponzi schemes, pyramid schemes and child pornography.

    The case has been under investigation for years. Homeland Security Investigations led the probe.

    “The arrest and indictments in this case demonstrate that we will vigorously enforce laws meant to protect the American consumer,” said U.S. Attorney Jessie K. Liu of the District of Columbia. “Money transmitting businesses are required to be registered federally and licensed in most states and jurisdictions, including the District of Columbia.  Consumers should beware of those that do not follow these laws because they could be acting as a cover for other illegal activity.”