Co founders of another payment processor, E-Gold, were indicted last week for allegedly ‘allowing the service to be used by criminals engaged in financial scams and child pornography’ according to the Washington Post who reported on the indictments
The indictment names the company’s co-founders — Douglas L. Jackson, of Satellite Beach, Fla., and Barry K. Downey, of Woodbine, Md., as well as Reid A. Jackson, of Melbourne, Fla. and charges them with conspiracy, money laundering and operating an unlicensed money transfer business.
The company is incorporated in Nevis, which is situated in the Caribbean but the company maintains offices in Melbourne Florida as well.
James Finch of the FBI’s Cyber Division stated “The advent of new electronic currency systems increases the risk that criminals, and possibly terrorists, will exploit these systems to launder money and transfer funds globally to avoid law enforcement scrutiny and circumvent banking regulations and reporting,” .
Following a 2.5 year investigation by the FBI, US Secret Service and the IRS, the government charged E-Gold and its parent, Gold & Silver Exchange, with operating an unlicensed money transmitting business under federal law and one count of money transmission without a license under D.C. law.
Please read the complete article at Washington Post