Payment Processors Sued for $6 Million

     LAS VEGAS (CN) — Fake Nevada payment processors stole millions of dollars from an online seller of beauty products, retailer DermAktive says in a lawsuit that claims a man orchestrated the fraud with help from his mother and girlfriend.
     DermAktive has been selling beauty products online since 2013. It uses payment processors for credit card and debit card transactions and refunds.
     In its May 26 lawsuit in Clark County Court, DermAktive says owners of “fake payment processing company T1 Payments” claimed to have direct relationships with banks and would process its customers’ payments.
     But actually, T1 relied on co-defendant Atlantic-Pacific Processing Systems to process the transactions, and stole “millions of dollars through theft, deception and outright fraud,” DermAktive says.
     “Having duped DermActive into processing its credit card and debit card payments with T1 Payments, [defendants Donald] Kasdon, [Debra] King, [Amber] Fairchild and T1 Payments, or some combination of the foregoing, then stole hundreds of thousands of dollars from DermActive’s bank account, and forged bank documents to increase the amount of money they could steal,” according to the complaint.
     The sixth and final defendant is 7 Processing, a Nevada LLC, as are the other business entity defendants.
     Kasdon is president of T1 DermAktive says, however: “In reality, T1 Payments was a mere conduit, created by Kasdon and his mother, Debra King, and girlfriend, Amber Fairchild, through which T1 Payments and they could steal money from merchants such as DermAktive. As DermAktive later learned, T1 Payments, Kasdon, King, and Fairchild had already hatched a plot with Atlantic-Pacific Processing Systems whereby they entered into secret agreements to quickly and easily steal DermAktive’s money, and then use those agreements to deflect their fraudulent misconduct.”
     DermAktive says the fraud committed by T1 and the three individual defendants “reached beyond” Atlantic-Pacific Processing Systems, but claims that Atlantic-Pacific “facilitated, furthered, and materially participated in much of the theft, deception and fraud through secret agreements with T1 Processing, Kasdon, Fairchild and King, and other illegal misconduct.”
     DermAktive seeks at least $6 million in damages, and treble damages, for fraud, conversion, fraudulent concealment and unjust enrichment.
     Its attorney Marc Randazza could not be reached by telephone Wednesday.
     Atlantic-Pacific Processing Systems could not be reached for comment after hours.

%d bloggers like this: