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One of the biggest payment processing companies and its former executive will pay more than $40.2 million to settle Federal Trade Commission charges they knowingly processed payments and laundered, or assisted laundering of, credit card transactions for scams that targeted hundreds of thousands of consumers.
The FTC alleged that First Data Merchant Services, LLC and its former vice president, Chi “Vincent” Ko, allegedly ignored repeated warnings from employees, banks, and others that they were laundering, or assisting laundering, and facilitating payments for companies that were breaking the law over a number of years.
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