21 September 2017
visit www.avoka.com

Former iPayment execs charged over multi-million dollar fraud scheme

13 March 2017  |  4676 views  |  0 Security

The Securities and Exchange Commission has charged two former iPayment executives with a scheme that allegedly saw them manipulate the credit card processing firm's accounting systems to steal millions of dollars.

Former SVP of sales and marketing Nasir Shakouri and COO Robert Torino also face criminal charges brought by the US Attorney’s Office for the Central District of California.

Between 2008 and 2012, Shakouri and Torino allegedly cost their employer $11.6 million through phony expense reimbursements, inflated invoices, and other improper accounting tactics.

The pair routinely reimbursed themselves for payments that were never actually made to third-party vendors using their personal credit cards, says the complaint.

In addition, they allegedly conspired with vendors to inflate invoices and receive kickbacks from the overpayments, and claimed improper commissions and bonuses related to other corporate funds they improperly diverted in various ways.

Another three iPayment execs - Bronson Quon, John Hong, and Jonathan Skarie - face charges, accused of helping Shakouri and Torino to falsify books and records to hide the thefts in return for cash.

IPayment says that it discovered the scheme in 2012 and has since put in controls to prevent a repeat, adding that the SEC and DoJ charges bring to a close a "regrettable period".
KeywordsLEGAL

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.sibos.comvisit www.vasco.comvisit www.abe-eba.eu

Top topics

Most viewed Most shared
HSBC switches on selfie payments in ChinaHSBC switches on selfie payments in China
12087 views comments | 25 tweets | 41 linkedin
Equifax hack: Visa and Mastercard flag 200k compromised credit cardsEquifax hack: Visa and Mastercard flag 200...
10788 views comments | 6 tweets | 17 linkedin
Dutch bank sentences teenage DDoS culprit to community serviceDutch bank sentences teenage DDoS culprit...
9437 views comments | 6 tweets | 3 linkedin
Apple P2P payments service nears launchApple P2P payments service nears launch
8020 views comments | 18 tweets | 26 linkedin
UAE banks pool cyber security dataUAE banks pool cyber security data
8002 views comments | 5 tweets | 4 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job