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Telemarketing Settlement Pays Ohio $2.8 Million

March 12, 2010
By David Sims - Telemarketing Software Contributing Editor


More than $2.8 million is headed to Ohio consumers following the resolution of an alleged multimillion-dollar payment processing fraud scheme, state Attorney General Richard Cordray’s office said, according to Columbus Business First:


“The distribution to more than 24,000 Wachovia Bank NA customers in the state is tied to a 2007 settlement between the Federal Trade Commission, Ohio and six other states that accused Florida payment processors Your Money Access and YMA Co. of processing unauthorized debits from Wachovia accounts nationwide on behalf of telemarketers.”

According to the news from Business First, “officials allege the companies, owned by Tarzenea Dixon, helped the telemarketers secure more than $200 million in debits from 2004 to 2006.”

According to Cordray’s office, “between June 23, 2004 and March 31, 2006, Dixon’s company processed more than $200 million in debits and attempted debits by providing its clients access to consumers’ bank accounts. More than $69 million of the attempted debits were returned or rejected by consumers or their banks as unauthorized charges. In other instances, the merchants either failed to deliver the promised products or services or sent consumers relatively worthless items.”

In 2007 Dixon was hit with charges tied to the scheme, Business First reported, adding that this week she “was banned from the businesses and put on the hook for a $22 million judgment. That judgment has been stayed because of Dixon’s inability to pay, but Wachovia had agreed to issue more than $150 million in checks to consumers affected by the alleged scheme, including the $2.8 million headed to Ohio.”

In 2008, according to an article posted on YourLawyer.com, Wachovia Bank was accused of allowing fraudulent telemarketers to use the bank’s accounts to steal millions of dollars from unsuspecting victims in a 2007 lawsuit:

“Bank executives maintained that they were unaware of the thefts, but in newly-released documents from that lawsuit, Wachovia had both long known about allegations of fraud and had actually solicited business from companies it knew had been accused of telemarketing crimes.”

David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Kelly McGuire



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