FTC Charges 12 Defendants with Laundering Transactions for the "Money Now Funding" Scheme

The Federal Trade Commission (“FTC”) has taken action against 12 individuals and companies involved in laundering millions of dollars through fraudulent merchant accounts. The charges, filed against both an Independent Sales Organization (“ISO”) and several sales agents, relate to their role in enabling the deceptive "Money Now Funding" (“MNF”) scheme. The FTC said this action highlights the continued efforts of the FTC to crack down on fraudulent practices that exploit consumers and evade anti-fraud systems. The "Money Now Funding" operation promised consumers the opportunity to earn substantial income by helping small businesses secure loans. However, the scheme was found to be a complete fraud, as the business opportunity it offered was entirely non-existent. In 2013, the FTC had already charged MNF for misleading consumers with false income promises. The case filed today extends the FTC’s investigation to those who helped facilitate MNF's activities through fraudulent merchant accounts. According to the FTC's complaint, the defendants provided the MNF operation with access to the credit card networks by submitting fraudulent applications for merchant accounts in the names of more than 40 fictitious companies. These applications were submitted despite obvious signs that the companies were likely invented to conceal the identity of the true merchant, enabling MNF to process nearly $6 million through credit card networks without detection. By using these fake merchant accounts, the defendants circumvented anti-fraud monitoring efforts set up by the credit card companies.