COLUMBUS, OHIO (CN) – The State of Ohio sued three Texas-based payment processors and two men who run them, claiming they work with fraudulent telemarketers who the defendants know, or should know, are bilking consumers.
Defendants Capital Payment Systems, Banctech Processors, and Electronic Check Corp. all work out of the same El Paso address. Defendant Bruce C. Woods also lives in El Paso; defendant Ali Nakhai lives in Montreal, Quebec.
The state claims that the fraudulent telemarketers with whom the defendants work have “total return rates (that) ranged from 44.58 percent to 81.01 percent.”
The defendants processed more than $1 million in claims for the shady operators, the state claims in Franklin County Court. It says telemarketing fraud costs U.S. consumers more than $40 billion a year.