All-or-Nothing Investment Websites Used Wirecard for Card Payments

Wirecard, the German payments company, is an all-or-nothing investment company. To put it more succinctly – pay with Wirecard and you’ll see everything you need to make it worthwhile – and vice versa. This means Wirecard is the only payment platform that gives you access to all the investment options and services offered by the company.

Wirecard Group GmbH, a German bank, has announced that all-or-nothing investment (AoNI) sites have been using Wirecard’s payment platform to process card payments for trading sites. Wirecard Group and the AoNIs use the transaction platform to process card payments and to provide a payment gateway solution for the AoNIs. The AoNIs use this service to process payments from investors which are made in the form of digital currencies.

Wirecard has announced that it is partnering with eight other online direct investment firms to allow customers to pay their monthly deposits directly from their bank account. Wirecard has also teamed up with these firms to enable them to withdraw money from their investment accounts using Wirecard’s PayPass payment system.. Read more about when did credit cards come out and let us know what you think.

than half a dozen websites that securities regulators say have stolen money from potential investors in the U.S., Canada and elsewhere have one thing in common: They all used Wirecard AG, a German technology company that went bankrupt after an alleged multi-billion dollar fraud. According to internal documents obtained by The Wall Street Journal and former company executives, websites specializing in binary options – all-or-nothing bets on financial markets – were raising money from investors through Wirecard’s card payment network. In one case, according to a former employee of that company, a then Wirecard executive was involved in the creation of a separate payment company that placed itself between investment sites and payment systems like Wirecard. According to the man and a civil lawsuit filed by the Commodity Futures Trading Commission, the scheme allowed the investment sites to operate without having to be monitored by the credit card networks that track the transactions.

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A collection of news, trends and views for the market. Plus the current market data. Almost a year after Wirecard admitted that $2 billion disappeared from its balance sheet, German investigators are still trying to figure out what went wrong. According to German prosecutors, much of Wirecard’s business of processing credit card payments for merchants and transferring the money to banks was fake, but there were real customers. According to former company executives, the companies involved were low-end businesses, including unregistered investment companies, as well as offshore gambling and pornography companies. According to former company officials, the processing of credit card transactions resulted in higher costs for these customers. Former Chief Operating Officer of Wirecard Jan Marsalek, who is wanted by German authorities, played a key role in the company’s efforts to win customers that rival payment companies did not want, according to former company executives and testimony in a recent case in U.S. federal court. Prosecutors in the case accuse Wirecard of facilitating illegal online payments for the sale of marijuana. Wirecard’s administrator did not respond to a request for comment. Mr. Marsalek’s attorney declined to comment.

German police poster looking for former Wirecard CEO Jan Marsalek.

Photo: Action Press/Zuma Press Electronic payments are one of the key elements of the modern financial infrastructure used by businesses and consumers when shopping online. Wirecard helped businesses collect credit card data and payment instructions from customers and pass this information on to banks. Payment experts say the rapid growth of this global network has come at the expense of regulation and oversight. There’s a huge gap, and it’s an easy way to get into the legal financial system for a lot of money, said Ron Tycher, CEO and founder of EverC. His company makes software to detect the laundering of online transactions, a practice used to disguise illegal payments as legitimate. A million credit cards can pop up and do it. Much of the payments industry is in fact self-regulating. Visa и Mastercard, which run the networks that connect banks and payment companies, have fined Wirecard in the past for providing false transaction data and processing too many transactions with stolen cards, the Journal previously reported. But according to the company’s former executives, the fines have made little difference to Wirecard’s business. Wirecard processes card payments for several binary options companies. Binary options are financial derivatives whose payment depends on whether or not an event occurs, for example. For example, if the price of a stock or currency reaches a certain level. Just like sports betting, binary options result in total wins or losses. In some countries, including the UK, binary options are not allowed to be sold to retail investors. In the United States, they are legal if traded on a regulated market. Payment processor Wirecard was the darling of the German fintech industry until auditors discovered a $2 billion hole in its books. The WSJ explains that we know about the missing money because investigators are still trying to figure out what happened. Photo composition: George Downs (video of 26/06/20) In 2013 and 2014, the CFTC and the Securities and Exchange Commission sued the investment site Banc de Binary for illegally selling binary options. The company, which had licenses in Belize and Cyprus and a call center in Israel, reached an $11 million settlement with the two agencies in 2016, and then announced its closure in early 2017. Banc de Binary used Wirecard through Al Alam Card Services, a third-party partner of Wirecard, according to internal company documents accessed by the Journal. The company was also listed as a processing customer of Wirecard on the bank’s internal customer list in 2017. The Banc de Binary website is no longer available, and email addresses and phone numbers associated with the company no longer work. According to company documents, another customer of Wirecard was Rodeler Ltd, a Kipus-based company that operated under various names, including 24Option.com. It offered binary options and other risky derivatives. The Financial Conduct Authority banned Rodeler from operating in the UK in May 2020 due to the company’s use of fake celebrity advertisements and high-pressure sales tactics. According to the FCA, one customer lost the equivalent of $560,000. A spokesman for Rodeler did not respond to a request for comment. Rumelia Capital, which operated in the United States and Canada, also used the Wirecard network. She ran an online brokerage firm that offered investors fantastic returns on winning and losing binary options bets on a wide range of stocks, currencies and other financial markets. Lisa Spencer, a 54-year-old information technology specialist from Sacramento, California, turned to Rumelia when she had a large sum of money after her father passed away in 2017. Spencer said she lost more than $300,000 when Rumelia suddenly stopped answering her calls and the website disappeared. I can’t believe I was so stupid, she said. It’s a shame to have to tell your family you’ve lost everything. The owners of Rumelia and several other websites set up an Irish intermediary that accepted card payments from customers like Ms. Spencer and funneled the money to the main payment system, the CFTC said in a civil complaint filed last September in federal court in Austin, Texas. The intermediary, Greymountain Management, used Wirecard as one of its main payment processing partners. During that time he was Sales and Operations Director for Wirecard in the UK and Ireland, Michelle Molloy, advised the owner of Greymountain, David Cartoux, on the company’s 2014 training, according to a former Greymountain employee. In 2015, Ms. Molloy’s 20-year-old son was named one of two directors, according to public records and former Greymountain employees. According to a former employee, the intention was to create a payment intermediary that would stand between binary options sites and payment processors such as Wirecard. According to the employee, Rumelia and its sister sites have had difficulty attracting payment companies to do business with them. word-image-7539

Joshua Cartoux, one of three brothers indicted by the CFTC for running an illegal binary options website. He and his brothers did not respond to the complaint. He did not respond to a request for comment.

Photo: Phil Lewis/WENN/Alamy The CFTC claims in its filing that Greymountain was created to reduce the risk that banks and credit card companies would refuse to transfer their customers’ money to Rumelia and other sites because of suspected fraud. Mr. Cartou and his brothers, who, according to the TCRC, were co-owners of Greymountain, Jonathan и Joshua Cartoux, did not respond to the TCRC’s complaint. Lawyers representing David Cartou and Greymountain in Canada did not respond to requests for comment. Joshua Cartoux did not respond to a request for comment. Jonathan Cartoux could not be reached for comment. Ms. Molloy did not respond to a request for comment. Lawyers for Molloy’s son and Greymountain in Ireland did not respond to requests for comment. Greymountain, based in the town of Gorey, south of Dublin, raised $165 million from investors including Americans and Canadians between 2013 and 2018, the CFTC said in a complaint. The lawsuit alleges that the three Cartou brothers behind Greymountain, Rumelia and other websites ran a fraudulent trading scheme in binary options and received nearly $28 million in offshore accounts. Ms. Molloy left Wirecard in 2016, according to company documents. It was then transferred to a second payment company led by Mr…. The card is registered in Ireland and is called MegaCharge, company documents show. MegaCharge is described in the CFTC’s complaint as a subsidiary or successor to Greymountain. The chief executive of MegaCharge, now known as Simple Internet Solutions Ltd. in Ireland, declined to comment. Last month, Greymountain and David Cartoux reached a settlement in an enforcement proceeding with the Ontario Securities Commission. Mr. Cartou admitted to facilitating card payments to binary options companies, agreed to a seven-year ban from acting as a director or officer in Canada, and paid fines and costs in the amount of $260,000. The agreement states that there is no evidence that he directly persuaded investors to buy binary options. Write to Paul J. Davis at [email protected] Copyright ©2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

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