The DOJ charged four executives of a Canadian payment processing company in connection with handling payments from victims of several international mass-mail fraud campaigns.
According to the DOJ, the executives knowingly used PacNet Services Ltd. as the "middleman" between banks and those orchestrating mail fraud campaigns from 1994 to September 2016. The fraudsters mailed "large volumes" of notifications designed to mislead potential victims into believing they would receive money, prizes or psychic services for a fee. The DOJ noted that many of the victims were elderly or otherwise vulnerable.
Commentary / Christian Larson
This indictment is notable because of the cross-border fraud schemes in Canada, Ireland, the Netherlands, the UK, and the U.S.—and the cross-border law enforcement response that led to the charges. Companies should be wary of clients engaging in cross-border activities that may be designed to evade national laws.
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