Payment Processor Pays $1.6M in Fraud Settlement

Share this content:
A payment processing firm and two related corporations agreed to pay nearly $1.6 million to settle a civil complaint accusing them of assisting fraudulent outbound telemarketers, the Federal Trade Commission said yesterday.


First American Payment Processing Inc., Phoenix, electronically debited bank accounts to knowingly process payments for telemarketers who deceptively sold advanced-fee credit cards, the FTC said. The company also violated rules governing the Automated Clearing House Network, through which First American processed the payments, according to the FTC.


Along with the payment, First American agreed to a ban from processing orders for outbound telemarketers, though the company may continue to process orders on consumer-initiated calls as long as it does not violate other laws. First American also must investigate the business practices of potential clients and obtain documents from them showing compliance with ACH Network rules before processing payments for them.


Also named in the FTC's complaint were Check Processing Center and CET Corp., related companies that before May 2000 did business as First American Payment Processing. First American's two principles, president/CEO Carl E. Towner and vice president/CFO Matthew Robinson, along with their wives, also were charged.


close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above