January 11, 2002 05:36pm
Federal Judge Rules Against Payment Resources International and Andy Phillips in Racketeering Case
Source: Paycom.net
by: Company Press Release
(MARINA DEL REY, CA) -- Paycom.net, an Internet Payment Gateway and Services Provider, has released the following information regarding the lawsuit against Payment Resources Intl. Questions regarding this release should be sent to legal@paycom.net.
A Us Federal Judge has ruled against Andrew Phillips (Phillips) and Payment Resources International (PRI), a credit card processor and ISO, in a Racketeering case filed in Federal Court last August. The lawsuit claims that the defendants PRI, its principal Phillips and a number of others participated in racketeering activities involving several different schemes in connection with the processing of credit card transactions over the Internet. United States District Judge Dean D. Pregerson has ruled that PRI, Phillips and others must defend themselves in Federal Court for the alleged Rico violations.
The plaintiff, Paycom.net, alleges that the defendants and Phillips in particular, conducted and conspired, through a pattern of racketeering activity, namely numerous acts of wire fraud, and laundering of monetary instruments to defraud Paycom.net. The pattern of racketeering is alleged to have involved at least five separate schemes designed to defraud Paycom.net, through banking transactions across the US, Central America and in Europe.
Paycom.net is claiming tens of millions in actual cash losses as a result of the alleged fraud. PRI and Phillips unsuccessfully challenged Paycom.net’s claims on the grounds that it had failed to set forth sufficient allegations to maintain a claim of Rico. In a ruling dated January 8, 2002, Judge Pregerson denied the defendants’ motion to dismiss and ruled that Paycom.net’s causes of action for the Rico claims were sufficiently pled against PRI and Phillips.
The entire lawsuit and the latest ruling may be found at http://www.paycom.net/lawsuit.pdf
Richard P. Crane, Jr., a former US Attorney and Federal Prosecutor and a partner with the Los Angeles firm of Musick, Peeler and Garrett represents Paycom.net. All press inquiries should be directed to Mr. Crane or to Dennis M.P. Ehling at 213-629-7600.
|
