Yeah saw that....
seen this over on xbiz???
BEFORE THE FEDERAL TRADE COMMISSION
REQUEST FOR CIVIL INVESTIGATIVE DEMAND
AND FEDERAL GRAND JURY INQUIRY
In Re:
Internet Billing Company, LLC, InterCept, Inc., )
Internet Security Assist (ANDORRA); )
First Union National Bank; )
First Data Merchant Service; First Financial Bank; ) )
Shared Global Systems; EPX Payment Exchange; )
Banco Uno; Issue Net, Inc.; Eric Welling; ) )
Process Pro, Inc.;Adult Mega Mall; Babenet; )
Alchemy; EZ Process, Inc.; Blair
Issue Net, Inc.;SDI Net, Inc.; AlphaSoft.com; )
Albony Investments;Kimville Investments Limited; )
Vitalix, Ltd.; Sharp Ventures, Limited; )
Sean Costello; New Harmony Enterprises, Ltd.; )
Dave Smith;Multinet Communications, Ltd.; )
Dan Brent;Kingfisher Trade & Commerce; )
Rani Balaig;Log On Ventures, Inc. )
Does 1-100, )
This request for civil investigative demand and federal grand jury inquiry alleges the following:
1. This request seeks that the Federal Trade Commission investigate as to whether the above named have violated the Federal Trade Commission Act; United States and International Banking Regulations by engaging in a pattern and practice of unfair and deceptive acts related to a scheme to submit unauthorized and fraudulent transactions into the various financial networks, as well as launder money from international and illegal sources.
2. Beginning March 2002, the above named have developed a scheme of purchasing credit cards from international issuing banks in foreign currencies, domestic banks through various employees, submitting such credit card data through a United States Bank, and remitting payment in United States Currency while collecting fees for such services.
3. The above named have bribed foreign and domestic banking officials through the use of hidden “fees,” “charges”, and other means of funneling cash and non-cash payments to officials and employees responsible from monitoring checks and balances traditionally in place to prohibit such illegal activity.
4. The specifics involve financial institutions in Panama, Andorra, Canada, and Lebanon. The possibility exists that terrorist groups in Lebanon have funneled monies from the above purchase of credit cards to assist in the financing of various terrorist acts.
5. The scheme is effectuated as follows:
a) Pornographic website operators arrange for the purchase of credit cards through non-united states banks that issue unlimited amounts of VISA and MasterCard for a “fee”;
These same website operators contact third party billing companies that specialize in processing credit cards in aggregation on behalf of pornographic websites;
c) The fraud department of these third party billing companies are instructed to “turn off” velocity checks for certain accounts that are designated for the fraudulent transactions;
d) The third party billing companies in turn contact their upstream processors who are told to turn off their velocity checks as well, thereby allowing these fraudulent transactions to flow freely through interchange;
e) The United States Acquiring Banks, knowingly and in some instances unknowingly settle the fraudulent transactions in United States currency which is then distributed to the pornographic website operators who have now successfully laundered foreign monies;
f) When VISA or MasterCard contact the issuing bank that sold the credit cards, the issuing banks ratify the charges and indicate to the card associations that the cardholders have not indicated any fraudulent activity;
g) When the card associations contact the acquiring banks, the acquiring banks that knowingly participate in the scheme submit fraudulent supporting data to the card associations, and the acquiring banks that are unknowingly participating in the scheme receive fraudulent supporting data from the third party processors.
6. The scheme is effectuated in this manner as well:
a) third party processors arrange for the purchase of VISA and MasterCard debit cards from international issuing banks;
The credit card accounts are funded through the use of an intermediary escrow agent, usually a money transmitter, or trust company that receives monies from the third party processor and wires the money to the corrupt and participating foreign bank;
c) The foreign bank and domestic bank collect “fees” in the form of funneled negotiable instruments or direct cash payments;
d) The credit card data is delivered to the third party processor and the third party processor imports such data through specific accounts designated for such transactions;
e) The fraud departments of the third party processor as well as the upstream provider are instructed to turn off the velocity checks so as to allow multiple “suspect” transactions from being detected.
f) The credit cards are paid through the funded account, and when the desired amount of transactions have been run, the monies are wired back to the intermediary and eventually make their way back to the third party processor.
7. The final scheme is as follows:
a) Pornographic website operators are allowed to “post in” transactions to the third party processors;
The transactions involve both authorized and unauthorized credit card data which is allowed to sail through the third party processor fraud checks without any scrutiny;
c) Third party processors collect a fee, and the pornographic website owner/operators are delivered the balance of the payments, irrespective of the knowledge that the transactions are not authorized.
8. Consumers contact the third party processors and dispute charges posted to their Credit Card account. Customer service representatives were well aware of the instances of unauthorized charges, and issued a credit, “with no questions asked”. However, in other instances, customer service representatives try and force consumers to ratify charges.
9. Third party processors allow some pornographic operators to experience charge backs in excess of 6%.
10. The Federal Trade Commission has jurisdiction over this matter because it involves international and interstate commerce, as well as criminal activity involving fraud perpetrated against consumers.
It is hereby requested that the Commission investigate the civil aspects of the above mentioned activity, as well as contact the United States Treasury Department and United States Justice Department to formally investigate the above cited practices.
Respectfully submitted,
I hope its bullshit.....
http://boards.xbiz.com/showthread.php3?ref...&threadid=24243