The Federal Trade Commission (FTC) has taken action against Nexway, a multinational payment processing company, its CEO Victor Iezuitov, and chief strategy officer Casey Potenzone, for facilitating tech support scammers through credit card laundering. The defendants have agreed to court orders that prevent further payment laundering and mandate close monitoring of high-risk clients for illegal activities.
Nexway, along with several subsidiaries and an associated company, Asknet, has been accused of processing tens of millions of dollars in charges for offshore tech support scams and providing them access to the U.S. credit card network. Samuel Levine, Director of the FTC's Bureau of Consumer Protection, emphasized that the FTC would use its law enforcement powers to stop companies like Nexway, who knowingly launder charges for scammers.
The complaint highlights Nexway's involvement in multiple tech support scams since at least 2016, with "premium tech support" clientele accounting for a quarter of its business between 2016 and 2020. The defendants allegedly knew their tech support clients were scammers and directly received numerous complaints about them.
Court orders include several restrictions and requirements for Nexway, Iezuitov, Asknet, and Potenzone, such as a prohibition on credit card laundering, monitoring of high-risk clients, and prohibition on payment processing for tech support scammers using deceptive tactics. Additionally, monetary judgments require Nexway and its subsidiaries to pay $350,000; Asknet and its subsidiaries to pay $150,000; Iezuitov to pay $100,000; and Potenzone to pay $50,000. The total judgment of $16.5 million is partially suspended due to the defendants' inability to pay the full amount. If it is discovered that they lied about their financial status, the full judgment would become immediately payable.
The complaint and orders were filed by the U.S. Department of Justice on behalf of the FTC, with a 4-0 Commission vote to authorize the staff to refer the complaint to the DOJ and approve the proposed consent decree.
