Quick Index
 Adult Industry News
Search AINews Database
Type Keyword or Phrase Here
EXPO 2015, August 23-26, New Orleans
   
 

Front Page
Film News
Media News
Business News
Clubs & Appearances
Law & Politics
Internet & Mobile News
Lifestyles Arts Health Charity
Letters to the Editor
Columns
Movie Spotlight Reviews
Interviews
Pornstar Pages
AINews Staff
Ad Rates
PR 101: Press Release Service

Caliente Nudist Vacations!

Kayden Kross at Twistys

December 23, 2002 11:56am
IBM Must Defend Paycom Claims
Source: Epoch News
by: Company Press Release

(LOS ANGELES, CA) -- Federal Judge Rules IBM Must Defend Claims that it Wrongfully Received and Retained Millions of Dollars Derived From Internet Porn Websites.

A U.S. Federal Judge has ruled that IBM must defend claims that it wrongfully received, retained and refused to return millions of dollars derived from the sale of pornographic content over the Internet. The lawsuit brought by Paycom Billing Services, Inc. claims that IBM along with Payment Resources International ("PRI") and its principals Andrew Phillips and John Blaugrund, along with a number of other defendants, participated in a pattern of Racketeering activities involving several different schemes in connection with the processing of credit card transactions related to the purchase of adult-oriented content over the Internet. IBM is alleged to have received, retained and refused to return millions of dollars which Paycom was allegedly defrauded out of by PRI, Phillips, Blaugrund and certain other defendants in the largest of those schemes.

Last January, United States District Judge Dean D. Pregerson ruled that PRI, Phillips, Blaugrund and others (including a British processor known as Global Payment Systems Limited ("GPSL")) must defend themselves in Federal Court against allegations of Rico violations, including numerous acts of wire fraud and laundering of monetary instruments to defraud Paycom in connection with the processing of credit card transactions over the Internet. Paycom is claiming tens of millions of dollars in actual cash losses as a result of the alleged fraud. IBM is alleged to have contracted with GPSL to process the transactions which GPSL fraudulently obtained from Paycom, and then to have wrongfully retained the lion's share of the proceeds of those transactions to pay for other, unrelated debts of GPSL and certain merchants other than Paycom to IBM. In a related development, the Los Angeles Federal Court granted judgment on December 20th, 2002 in favor of Paycom against GPSL in excess of $40 million (which is subject to collection).

IBM sought to avoid defending Paycom's claims on the basis that IBM's conduct was factually unrelated to the alleged fraudulent conduct of the other defendants. In a ruling dated December 12, 2002, Judge Pregerson denied IBM's Motion to Dismiss and ruled that IBM's alleged conduct was sufficiently related to the alleged conduct of the remaining defendants such that it is appropriate for IBM and the other defendants to be forced to respond to Paycom's claims in the same lawsuit.

The entire lawsuit may be found at Paycom.net/lawsuit.pdf Richard P. Crane, Jr., a former U.S. Attorney and Federal Prosecutor, and his partner at the law firm of Musick, Peeler & Garrett LLP, Dennis M. P. Ehling, represent Paycom. All press inquiries should be directed to Mr. Crane or Mr. Ehling at 213-629-7600.

---
The Team at Epoch


Related Stories

Related Sites - WARNING! Graphic Content

RavenBay01.3gp

See BiBi Jones at Digital Playground

Top Stories

MWA: 05/22/15

Amateur Allure New Lines

Sin Claire with Foxxx

Adult's Achilles Heel

AHF's Hidden Agenda

New Smash VP Wyatt Case

Ink Inks OC, The Rub

National Porn Star Day

Pistol, Ross Talk Condoms

XXX Casting Call

Direct Reps Harper

AJ Applegate Available

Emma Marx: Boundaries ~ Reviewer Rated

Strippers Ready for Baseball

MWA: 05/04/15

RAW Signs Sasha Bradshaw

Modern Comstockery

Nikki Phoenix Appearance

Rock’N’SeXXXy Welcomes Billy Blair

Karaoke XXX Needs New Location

Jane & Ward Hosting XRCO

SashaBrabuster's XXX Comeback

Control ~ Reviewer Rated

XRCO 2015 Nominees

A Leaner Message

MWA: 02/26/15

50 Shades of Grey ~ Cinema Seen

XRCO 2015 Hall of Fame

Interview with Ela Darling

Derrick Pierce Interview

The News Rack: Naked Swingers

MWA: 02/07/15

Interview of Holly Heart

ED Expo to Big Easy

More
Stories From

Law & Politics

Adult's Achilles Heel

AHF's Hidden Agenda

Pistol, Ross Talk Condoms

Modern Comstockery

Hof on Phoenix Hooker Bust

Cal/OSHA vs Evil Angel

Pornstar Graduates Law School

AHF Against AB 999

CraigsErotica Letter to Senators

Amazon Crushes Small Business

Letter of Equality

ASACP Service Recognition Award

Suit Filed Challenging Measure B

ASACP Ready For Internext

Octomom Loses Civil Suit

ASACP at XBIZ 360

Crakmedia ASACP Corporate Sponsor

Mo Reese Statement

CAM4 Newest ASACP Sponsor

Mo Reese FSC Nom

Amber Lynn Seeks FSC Board

Suit Against Measure B

Law Puts Con in Condom

No on B: Here's Why

NO on B Campaign

NO on B Bus Tour

GFY: Vote No on B

Margold on Erection Election

Alex Chance in Documentary

Yahshua: No On B

No On 35 Rally

Why No On B

Measure B Threatens Freedom

Measure B Protest Video

No On B Raffle

Alia Janine: No On B

AHF Vilifies Porn

No on B Event

Alia Janine Against Measure B

Fight Measure B

Takedown Piracy Removes 10,000,000

John Stagliano Keynotes CatalystCon

Hirsch Blasts Trueman

Hirsch Cautions GOP

LATATA Files Injunction

Child Porn Hotline Increased

Vette Scores on AFF

Nicole Houde Assault Arrest

YouJizz Sued

Dickinson Defends Travolta

Kardashian/Humphries Divorce Deposition

Three Stooges Porn Controversy

Suing: Wasn't Sexy Enough

Lords of Acid Censored

Nate Glass on CNBC

Law & Politics Section Index

     
Copyright © 1998 - 2015 Adult Industry News (AINews.com)
All materials constituting text, articles, press releases, stories, columns, photographs, graphics, and code on the AINews.com domain are protected by copyright, and either owned by Adult Industry News (AINews.com), or reproduced with permission from other copyright owners. It may be downloaded and printed for personal reference, but not otherwise copied, altered in any way, or transmitted to others, without the written permission of Adult Industry News (AINews.com).