December 10, 2020

Complete Merchant Solutions, LLC (CMS), a payment processor, and its former CEO, Jack Wilson, have agreed to pay $1.5 million in refunds to harmed consumers in order to settle FTC charges of illegally processing millions of dollars in credit card payments that they knew or should have known were fraudulent.  According to the FTC, CMS and Wilson ignored clear red flags while processing payments, including high rates of consumer chargebacks, the use of multiple merchant accounts to avoid chargeback rates, and the submission of sham chargeback reduction plans.  As part of the order, CMS and Wilson are required to conduct enhanced screening and monitoring of certain merchants, and are prohibited from acting as a payment processor for certain companies.  FTC

Tagged in: Financial and Investment Fraud,