20 July 2017
visit www.finastra.com

Former iPayment execs charged over multi-million dollar fraud scheme

13 March 2017  |  4432 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".

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.ncr.comvisit www.niceactimize.comvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
German fintech factory FinLeap raises EUR39 millionGerman fintech factory FinLeap raises EUR3...
12295 views comments | 19 tweets | 15 linkedin
EPC gears up for pan-European instant paymentsEPC gears up for pan-European instant paym...
9615 views comments | 10 tweets | 28 linkedin
Man trapped in ATM slides 'help me' notes through receipt slotMan trapped in ATM slides 'help me' notes...
9512 views comments | 8 tweets | 20 linkedin
Festy unveils digital currency payments wristbandFesty unveils digital currency payments wr...
8989 views comments | 11 tweets | 7 linkedin
Mastercard to buy AI outfit BrighterionMastercard to buy AI outfit Brighterion
8415 views comments | 14 tweets | 20 linkedin

Featured job

London, UK (or flexible)

Find your next job