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INTERNET | Internet Software & Services / Payments
alertpay.com

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Founded Year

2004

Stage

Acquired | Acquired

About AlertPay

AlertPay is an online payment platforms sxpecializing in making and accepting secure e-wallet and credit card payments. The Company also offers foreign exchange services, localized banking, fraud prevention, email invoicing, mass and single remittances and business management tools.In April 2012, AlertPay was acquired by MH Pillars. The valuation of AlertPay was undisclosed. Other terms of the deal were not released.

AlertPay Headquarter Location

8255 Mountain Sights Suite 100

Montreal, Quebec, H4P 2B5,

Canada

514-748-5774

Latest AlertPay News

Montreal brothers sentenced in Washington, D.C., for money laundering

Nov 10, 2020

Montreal brothers sentenced in Washington, D.C., for money laundering Back to video “I’m obviously very deeply ashamed by my role and the mistakes I made, the lack of actions I should have taken and my lack of judgement,” Firhan Patel said when the judge asked if he had anything to say before she sentenced him. “While we were making mistakes I tried to rectify them when we saw the opportunity to do so. We tried hiring regulatory lawyers. We made a lot of efforts on the compliance side. But, unfortunately, while we were trying to be compliant we were aware we were in violation of federal laws while doing so.” Advertisement Article content continued While delivering her decision, the judge said she did not buy claims made by either brother during Tuesday’s hearing that they simply got in over their heads while trying to compete with major competitors like PayPal and sorting out compliance restrictions. “At the end of the day they transferred $250 million in illicit funds ,” the judge said, calling the Patel brothers’ claims “astonishing.” “You were facilitating that conduct in a very real way,” the judge said. “I don’t know if you ever thought of the drug addicts it was creating or how elderly people were losing their life savings (through fraud schemes).” Through an agreement made before they were sentenced, the brothers agreed to forfeit more than $4 million each as part of their sentence. Advertisement Article content continued Their lawyers have asked that the brothers serve their time behind bars at a federal penitentiary in Danbury, Conn., because its proximity to the Canadian border will allow their families to visit them. The correctional institution is 540 kilometres south of Montreal. The judge agreed with a request from Firoz Patel’s lawyer that he begin serving his sentence in February for personal reasons. The prosecution had asked that Firoz Patel be sentenced to a 52-month prison term and that his brother be sentenced to a two-year prison term. The judge decided on lower sentences because the brothers had no criminal records and because of several letters of support from people in Canada, including an imam at a Montreal mosque, a federal law enforcement officer and a doctor. Advertisement Article content continued In 2010, their company was the subject of a business profile published by the Montreal Gazette. They said they grew up in Brossard and, at the time, their business was based on the ground floor of a building on Mountain Sights Ave. in Snowdon. They described how they started AlertPay, an internet payment company similar to PayPal. Ferhan boasted that while he and his brother had taken a serious risk, the company was profitable from the first day it launched. In the same interview, Firoz complained that the company “kept getting shut down for absolutely frivolous reasons.” He was referring to how regulators had shut the company for helping organizations that were committing crimes. According to a sentencing memorandum filed by the prosecution in the U.S. case, shortly after it began operating, AlertPay “was transmitting the illegal proceeds of multi-level marketing fraud schemes, pyramid schemes and Ponzi schemes as customers and were thus aware of this illegal money laundering. Advertisement Article content continued “In addition, Firoz Patel and Ferhan Patel were participating as customers in at least one of the Ponzi schemes for which AlertPay was providing money transfer services.” AlertPay was also not licensed to operate anywhere in the U.S., but it continued to do so while ignoring cease and desist letters sent from several state regulators. In 2011, AlertPay hired a U.S. compliance company to conduct an audit and the brothers were warned they were operating illegally without a license in 45 states as well as the District of Columbia and that they should stop doing business in the U.S. immediately. The brothers ignored the warning as well as others that followed and AlertPay continued to do hundreds of millions of dollars in unlicensed transactions. Advertisement

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Expert Collections containing AlertPay

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

AlertPay is included in 1 Expert Collection, including Fintech.

F

Fintech

10,750 items

Excludes US-based companies

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