U.S. Government Cracks Down on Scammers

September 28, 2016

 The U.S. Treasury Department has added PacNet to their list of mobsters, drug cartels and murderers by labeling it a “significant transnational criminal organization” on Thursday September 22. A month-long CNNMoney investigation has uncovered that the small Canadian payment processor company, PacNet, has been helping elite groups of international con artists and companies steal money from the elderly for years now.

 

According to the CNN website, U.S. citizen Pat Wilson turned to the Iowa Attorney General for help in 2014, saying her mother had racked up thousands of dollars in credit card debt and had no money left in her savings or checking accounts.

 

Wilson’s elderly mother had fallen victim to over 700 accounts of mail fraud. The 91-year-old had been sending checks in response to phony prize notices and personalized letters from psychics promising financial gain. In one year she had sent over $29,000 to these fraudulent companies.

 

CNN reported, “And as (Iowa) state investigators scoured the piles of checks and letters looking for clues, they came across a surprising tie that connected many of these seemingly unrelated schemes.” Seventy-five percent of the checks sent out by Wilson’s mom were deposited by PacNet Services, Ltd. “This added up to nearly $24,000, which went to at least 50 different mail fraud schemes (involving at least 18 separate companies), according to the agency.”

 

The U.S. government has seized PacNet funds held at a U.S. bank, claiming that PacNet used the account to "facilitate money laundering" for illegal schemes. According to the U.S. government, "A staggering quantity of mass mailing fraud has gone through PacNet accounts." The government found at least one company was using PacNet to process payments for more than $50 million a year from victims.

 

Tens of millions of dollars more in scam proceeds have been deposited by PacNet, according to CNN. When CNN asked PacNet to comment on why they had allowed so many scams to be processed through them, PacNet threatened to sue CNN. 

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