It has been reported that many former high-risk merchants have filed lawsuits against T1 Payments, a high-risk payment processor that is controlled by Donald Kasdon, saying that they have not been paid their dues. Those interested in digging into the topic could find it beneficial to learn more about Donald Kasdon and his history as a way to better understand the situation.
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Who is Donald Kasdon?
Donald Kasdon, a well-known personality in the sector of high-risk payments worldwide, was born and raised in Miami. This sector of the economy works amid a difficult environment, often straddling the narrow line between lawful endeavors and those that may be considered questionable or illegal.
The Kasdon family was responsible for managing the high-risk payment system known as T1 Payments Group until the company filed for bankruptcy in the early years of 2023. This business was one of the more prominent endeavors affiliated with the Kasdon family.
Notably, the monetary environment of high-risk payments often includes companies that deal with transactions that are seen as riskier by conventional financial institutions.
Companies that have a track record of chargebacks or are unsure of their legal standing are examples of the kinds of enterprises that fall into this category. As a consequence of this, these businesses are subject to a variety of complicated regulatory and compliance challenges.
Pixxles Ltd., which is an Electronic Money Institution (EMI) and is licensed by the Financial Conduct Authority (FCA), is also something that gets noticed within this environment. Amber Fairchild, who was once engaged to Donald Kasdon, is the one who established Pixxles Ltd. and is now managing it.
The fact that this EMI seems to be wasting a substantial amount of financial resources without any obvious or identifiable business strategy is a fascinating factor that raises issues about its operations and its economic viability.
Donald Kasdon’s tale about this difficult and diverse profession is made more complicated by the nuances of the high-risk payment industry, as well as by the insolvency of T1 Payments Group and the mystery surrounding Pixxles Ltd.
You may visit the following links to learn more about him:
Donald Kasdon: US Bankruptcy And Fraud Claims
US payment processor T1 Payments has been embroiled in controversy and litigation. Company leaders Donald Kasdon, Debra Karen King (also known as Debra Karen Kaisen), and Amber Fairchild have been accused of misbehavior and fraud. Many merchants complained about T1 Payments abruptly terminating their accounts and withholding cash to reduce risks like chargebacks and other obligations.
Many businesses have sued T1 Payments for fraud since the withheld monies were not provided as promised. T1 Payments LLC disclosed 10 Nevada and California litigations in its early 2023 bankruptcy petition, highlighting their legal issues.
T1 Payments LLC filed for Nevada bankruptcy due to rising complaints and lawsuits. This step may have been an effort to shelter the corporation from litigation, but the bankruptcy procedures have caused many creditors to seek restitution.
There are a total of 1,500 creditors, the vast majority of whom are once-satisfied clients of T1 Payments. Some of these customers have sustained significant losses, with some particularly prominent instances being New U Life Corporation, which has outstanding funds totaling more than $5.2 million, Hyper Sls Ltd, which has roughly $350,000, G Com Pte Ltd, which has $231,000, and D.N.G FZE, which has $225,000. The procedures regarding the bankruptcy have led to a loss that is measured in the tens of millions of dollars.
Donald Kasdon, the person who is often seen as the genius behind T1 Payments, has made an effort to transfer the responsibility for the company’s financial woes onto his mother, Debra Karen King, by claiming that she misappropriated a significant percentage of the money that was in the business’s possession.
Due to the complexity of the issue, doubts have been made regarding the company’s financial operations as well as the responsibility of its main participants. As a result, a large number of creditors and merchants have turned to the bankruptcy process in an attempt to find a resolution and compensation.
The UK Pixxles Issues
In addition, T1 Payments’ presence was expanded to the United Kingdom via its connections with T1 Payments Ltd. and TGlobal Services Ltd. The first one was required to be removed from the Companies House database in June 2023, while the second one was able to avoid the same fate by filing an appeal. Pixxles Ltd. was established by Amber Fairchild, who had previously served as a director of TGlobal Services Ltd.
Significant financial transactions have taken place at the business that was designated by the Financial Conduct Authority (FCA) as an electronic money institution in 2021 under reference number 927960. There has been no disclosure of where this cash came from. Nevertheless, it cannot be denied that Pixxles is now facing a growing financial deficit.
The most recent document submitted to Companies House discloses that the company had a loss in 2022 that was more than 1.1 million GBP. This represents an increase from the deficit of 954,463 GBP that was recorded in the previous year.
Despite a huge influx of share capital of 3.5 million British pounds, the company has already incurred losses that exceed 3 million. In addition, Amber Fairchild’s financial relations with Pixxles reveal ongoing obligations, even though they had been reduced to only a little bit more than 165,000 GBP by October 2022.
Donald Kasdon: Claims Against Payvision, T1 Payments
In March of 2021, a court decided that two people Ray Akhavan and Ruben Weigand were responsible for a scam involving the Eaze corporation that constituted bank fraud.
This plan misled banks in the United States by using credit and debit cards to make over $150 million worth of purchases for marijuana, but it pretended that these transactions were for other things, such as face creams and dog supplies.
This allowed the scheme to fool the financial institutions. Akhavan was given a sentence of thirty months in jail, whilst Weigand was given a term of fifteen months.
There are claims that a subsidiary of ING known as Payvision together with its partner company in the United States, T1 Payments, were engaged in a scam like this between the years 2016 and 2021.
The fraudulent use of what is referred to as Merchant Category Codes (MCC) and a country of origin to disguise the genuine identity and whereabouts of the merchants, as well as the type of items that were being offered, was at the heart of the Eaze case.
It was determined that this scheme constituted fraud against banks rather than simple money laundering.
Payvision and T1 Payments are said to have been payment processors that were engaged in the drug scene in the United States, according to the information that was supplied by the European Funds Recovery Initiative (EFRI).
It is stated that T1 Payments and Payvision purposefully hid the real nature of the transactions by changing MCC codes and forming foreign aggregators. This allegation is similar to the one that was made against Eaze.
Donald Kasdon: Proceedings in U.S. Courts
Some of the drug dealers believed that T1 Payments and Payvision had cheated them, and as a result, they filed lawsuits in the United States. The following legal claims have been launched against T1 payments and/or Payvision in the United States by merchants involved in the drug trade and former customers of such businesses.
- MasterCard and Visa prohibit the purchase of marijuana since it is unlawful under federal law. Some retailers misuse merchant codes to handle marijuana or Kratom payments, dubbed “miscoding” or “transaction laundering.” This circumvents credit card company regulations.
- On February 27, 2020, Sarah Grauert and HANNAVAS Enterprises LLC filed a lawsuit (Case No. 2.20-cv-00411-KJD-VCF) related to a Payment Processing Agreement for online cannabis product stores at bionicbliss.com. The lawsuit appears to be about a $1 million early termination fee, which is being contested.
- Nevada Court Case 2:22-cv-01046-CDS-NJK was filed by GAIA Ethnobotanical LLC on July 2, 2022. Kratom payment processing began on August 12, 2020, and ended on May 28, 2021, according to the complaint. In this lawsuit, GAIA Ethnobotanical seeks $0.4 million.
T1 Payments and Payvision CEOs Donald Kasdon and Rudolf Booker established a payment method in 2015. Rudolf Booker guided Donald Kasdon on European firms for this initiative, according to court filings.
After acquiring Payvision at the beginning of 2018, ING continues to do business with US drug retailers. Around 2021, ING removed itself from these operations. Andre Valkenburg became Payvision’s CEO in April 2020 when Rudolf Booker and his co-founders resigned, retaining the T1 Payments partnership until 2021.
While facing US legal challenges, T1 Payments and ING/Payvision clashed. Donald Kasdon said ING consistently monitored Payvision’s U.S. operations and risks. Donald Kasdon filed T1 Payments’ bankruptcy documents in December 2022.
Donald Kasdon: T1 Payments Bankruptcy Decision
Previously associated with Payvision, T1 Payments was sued by merchants for fraud. In January 2023, T1 Payments filed for bankruptcy over these charges.
Donald Kasdon, his mother Debra Karen King (now Debra Karen Kasdon), and his fiancée Amber Fairchild led T1 Payments. The Financial Conduct Authority-regulated Pixxles Ltd. was founded when T1 Payments went bankrupt.
A notable court ruling involves T1 Payments creditors Donald Kasdon and his family. Creditors feel tricked and want their money back. This court ruling reveals how T1 Payments treated its customers.
I don’t know how T1 Payments operated or what caused the legal disputes, but the court order may reveal the company’s business practices and what caused the fraud claims and bankruptcy.
Key Points of Court’s Discussion
1. Avoiding T1 Payments Stay
- NULC requested relief from the involuntary stay, which temporarily shields debtors from litigation and collection operations.
- NULC wanted to get a judgment on other T1 Payments and pursue its suit against non-bankruptcy parties.
- In this instance, the court recognized no legal basis for stay relief. The bankruptcy procedure certified NULC’s lawsuit against T1 Payments as valid. Litigating T1 Payments separately is unnecessary.
2. Taking Non-Debtors Off Stay
- The court reiterated that the automatic stay, which is a key aspect of bankruptcy legislation, is limited to the bankruptcy borrower, their property, and assets that are part of the bankruptcy property. Its purpose is to safeguard the property in question against any possible claims by creditors during the insolvency procedure.
- Claims against persons who are not debtors in the bankruptcy proceedings are not stopped by the automatic stay. Since the automatic stay does not apply to NULC’s claims against persons who are not debtors, a stay relief is not required. So, the bankruptcy stay will not prevent NULC from pursuing its legal claims against the aforementioned third parties.
3. Relieving Sequence
As part of its bankruptcy proceedings, NULC filed for a “comfort order” under Section 362(j) of the Bankruptcy Code. A consolation order is an order from the court that assures a party that they may go on with a certain set of claims or proceedings.
Donald Kasdon: Case Conclusion
Both NULC’s application to amend the automatic stay for judgment alone and the request for a comfort order were dismissed by the court. The verdict, in essence, preserved the integrity of the bankruptcy procedure by guaranteeing that once a claim is acknowledged and authorized inside bankruptcy, external litigation on the same topic is needless and redundant.
This was accomplished by ensuring that once a claim is recognized and granted within bankruptcy, it cannot be challenged again outside of bankruptcy.
In everyday language, this means that the court decision emphasizes the significance of the filing process in making sure that any claims brought against a bankrupt corporation are resolved within the parameters of the bankruptcy procedure itself, as opposed to being litigated in a separate setting.
The Bottom Line
Thus, Donald Kasdon and T1 Payments’ insolvency has caused legal challenges and fraud charges. The bankruptcy court has dismissed petitions for relief from the bankruptcy stay and a comfort order, emphasizing the significance of settling claims during bankruptcy. Creditors have suffered considerable financial losses and continuing legal processes due to Donald Kasdon and his family’s high-risk payment processing.