The Federal Trade Commission has charged First American Payment Processing, Inc., CET Corp., and Check Processing Center LLC, and their principals with providing assistance to fraudulent telemarketers.
According to the FTC, the Phoenix-based defendants knowingly processed electronic payments for telemarketers who deceptively sell advance-fee credit cards or who engage in other deceptive or abusive telemarketing practices.
The FTC also alleged that the defendants unlawfully processed transactions through the Automated Clearing House (ACH) Network on behalf of merchants engaged in outbound telemarketing to consumers for the purpose of selling goods and services.
On Jan. 20, U.S. District Court in Phoenix entered a preliminary injunction order prohibiting the corporate defendants and their principals, Carl Towner and Matthew Robinson, from processing ACH debits for entities engaged in the telemarketing of credit-related goods or services; processing telephone-initiated ACH debits for entities that engage in cold-call outbound telemarketing; and violating the Telemarketing Sales Rule.
The Commission said it is seeking redress for consumers and disgorgement of fees unlawfully earned through processing for fraudulent telemarketers.
The watchdog agency told WDS to take greater care in future.
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