Binary options and Forex operators and affiliates have a brand new set of troubles this week as PacNet, one of the industry’s top payment processors, is being investigated as the hub of a major criminal enterprise.
According to a recent report on FinanceFeeds.com, PacNet and its subsidiary Counting House, are under investigation by the US Department of Treasury and it seems that criminal charges for company officials are a distinct possibility. US Government officials have already suggested that PacNet is one of the most prolific criminal enterprises in the world.
Among the many accusations being leveled at PacNet is that company officials knowingly used their operation as a means of laundering black and gray market cash. Investigators are even saying that company’s private jets were used to ferry illicit cash across international borders.
In an very long investigative piece on CNN.com, reporter Blake Ellis repeatedly refers to payments between binary options and their US clients. Binary options are no longer legal under US law (though Forex trading remains legal).
US officials have also accused PacNet of facilitating payment processing for the groups responsible for a scam in which its employees pose as US tax officials.
The loss of PacNet, whose customer accounts are currently frozen, is major one for businesses of all kinds. After all, the company operates in more than 15 companies and handles a massive number of transactions for the binary options and Forex industries.
Roseanne Day, PacNet’s founder, reportedly founded the company after realizing that many large direct mail companies did not have access to traditional payment processing services.
PacNet officials are vigorously denying all the accusations and posted a statement stating that they plan to vigorously defend themselves in the matter.
As of this writing, no one at PacNet has been charged with any crimes relating to this issue.