Judge Orders Arrest of Credit Processor Rubin

A federal judge has ordered the arrest of credit card processor Ira N. Rubin for failing to show up at a hearing on claims that he had violated court orders issued against him for his role in aiding a credit card scam.

U.S. Judge James S. Moody, Jr. of U.S. District Court in Tampa, FL issued the arrest order on Jan. 30, two days after the scheduled hearing. He also held Rubin in contempt.

According to the FTC, Rubin and the other defendants had assistant at least nine Canadian telemarketing firms that sell nonexistent credit cards to U.S. consumers

Entered over a year ago, the temporary and permanent restraining orders froze Rubin’s personal assets and the those of the corporate entities he managed, collectively known as Global Marketing Group. The orders also prohibited him from engaging in payment processing activities.

On Jan. 15, the court ordered Rubin to appear and show cause why he should not be held in contempt for violating the orders.

In seeking the hearing, the FTC alleged that Rubin continued to engage in payment processing, misappropriating more than $500,000 in receivership assets, concealed $95,000 in credit card charges from the commission, lied on his financial statement and hid 13 boxes of corporate records, in violation of the court orders.

In return for an advance fee of several hundred dollars, which Rubin debited from consumers’ bank accounts on behalf of the Canadian telemarketers, consumers expected to get an unsecured credit card, according to the FTC. Instead, they received nothing or a worthless “benefits package,” the commission continued.

The FTC further claimed that the defendants debited funds from consumers’ bank accounts, deducted their processing fees from the gross proceeds, and forwarded the balance of the proceeds to the telemarketers.

In addition, the FTC charged that the defendants provided other services to the allegedly fraudulent telemarketers, including customer service, order fulfillment and list brokering.

The FTC filed its original complaint on Dec. 11, 2006, alleging violations of the FTC Act and the Telemarketing Sales Rule. It named as defendants Rubin and the following corporate entities under his control: Global Marketing Group Inc., Global Business Solutions LLC, Globalpay Inc., Globalpay LLC, Globalpay BV, Synergy Consulting Services LLC and First Processing Corp.

Rubin’s wife, Phoelicia Daniels, who allegedly has received funds and other property allegedly derived unlawfully from consumers’ payments, was named as a relief defendant.

An amended complaint filed by the Commission on March 19, 2007, named Rubin’s attorney, Kevin D. Astl, and 18 additional corporate entities owned or controlled by Rubin and Astl.

Click here for FTC documents relating to the case. <http://www.ftc.gov/os/caselist/0623186/index.shtm>