Donald Kasdon‘s U.S. high-risk payment processor T1 Payments has received several lawsuits in recent years from former high-risk merchants claiming that T1 Payments failed to pay them their money. Apparently, Donald Kasdon is trying to escape these many lawsuits via a Chapter 7 Bankruptcy deposition. T1 Payments was the U.S. partner of ING subsidiary Payvision, which is evidently desperately trying to settle lawsuits from questionable merchants in the U.S. We would like to know more.
Lawsuits In The U.S.
High-risk payment processors like Payvision or T1 Payments essentially do business in the gray and black segments of the economy. Payvision, for example, has had many merchants in the porn, online casino, and gambling and drug sectors. According to the desatrous DNB money laundering report issued in Oct 2020, this was continued even after Booker and his co-founders left the company at the end of April 2020 under the new management of Payvision. Besides that, the Amsterdam-based fintech has for many years supported the transnational criminal organisations around the Wolf of Sofia and Gery Shalon on a large scale. In the U.S., Payvision has been active through T1 Payments. Both are now trying to get out of the lawsuits in the U.S. We doubt whether Chapter 7 bankruptcy is the right approach.
Under the U.S. bankruptcy code, Chapter 7 bankruptcy is the simplest and most common form of bankruptcy. It is available to individuals who cannot pay their debts regularly. Businesses, such as T1 Payments, choosing to terminate their enterprises may also file Chapter 7. In case the debtor has assets not protected by an exemption. In that case, a court-appointed trustee may sell the assets and distribute the net proceeds to creditors according to the priorities established in the Code.
In the U.K., Pixxles, registered with the FCA as an e-Money institution (EMI), is a sort of successor company to T1 Payments. Pixxles is run by Donald Kasdon‘s former fiancée, Amber Fairchild. Pixxles continually raises capital to fund its business. According to Kasdon, the EMI hardly does any business but burns a lot of money. Most recently, the share capital was increased by £700,000 in November 2022.
We would like to know more about the situation with T1 Payments and Payvision. If you are a former merchant or have knowledge about their business, please share it with us through our whistleblower system, Whistle42.