Failed O.C. bank says it lost millions to high-tech fraud
By RONALD CAMPBELLA
Los Angeles County businessman is accused of stealing at least $3.5 million in a high-tech skimming operation at an Orange County bank seized last month by federal regulators.
The failure of Westminster-based First Vietnamese American Bank cost the Federal Deposit Insurance Corporation $9.6 million.
Some 300 businesses and nonprofits have sued the bank and Chatsworth businessman Masih Madani, alleging Madani stole their money under the bank's nose. First Vietnamese in turn has sued Madani and a second failed institution, Oakland-based Innovative Bank.
The cases shed light on the vast but little-known Automated Clearinghouse, which handled nearly $20 trillion in 2009 alone. Operating through the Federal Reserve Board, banks and "third-party processors" such as Madani's company, Opus Ventures, individuals and companies make billions of payments each year.
You probably use the system to automatically deposit your paycheck or Social Security check or automatically debit your mortgage or gym fee from your bank account.
Editors Note: We are interested in hearing from parties who have entered into agreements and/or contracts to offer or purchased branded or unbranded stored value cards. Please let MSRN know if you have filed a claim for funds on unbranded cards offered by Innovative Bank.
Seeking information from any and all investors, vendors, and business acquaintances of Masih Madani, and the following companies:
ONCALDERA CORPORATION
Number: C1776892
Jurisdiction: California
MADANI & COMPANY INCORPORATED
Number: C2136263
Jurisdiction: California
DARIUS ENTERPRISES, LLC
Number: 200626910114
Jurisdiction: CALIFORNIA
Opus Ventures
Domestic Corporation
C24738-2002
Inadam
Domestic Corporation
C3535-2001
Transysa
Domestic Corporation
E0710102005-0
Board Of Directors (June 2009)
Masih Madani
M Farley
K Maynard (representing the employees)
M Madani (representing Darius)
Unknown Board Member (representing Madani & Company)
W Smith (independent retired insurance executive)
Got Q LLC
Domestic Limited-Liability Company
E0092192008-3
Woopay, INC.
Domestic Corporation
E0435312009-5
Board of Directors (Nevada Secretary of State)
Director - FREDERIC DRZEWOWSKI
Director - PHILIPPE ERB
Treasurer - MASIH MADANI
Director - MASIH MADANI
Vice-President - MASIH MADANI
President - STEVE SMITH
Quantic Service Group, Mycropay, Mycropod, EBSG, Xmoola, TravelersCash, Remesa Global, Pin Pago, HMSBLUE, ephilanthropist
merchantservicereports@gmail.com
UPDATE
From Orange County Court Case 30-2008-00113102-CU-BT-CJC
UPDATE
According to a website found on 01/31/10
Masih Madani - President and CEO of Transysa
Mr. Madani founded TRANSYSA in April, 2005 with the technology and experience of OPUS Financials, its sister company. Mr. Madani is also the founder, President and CEO of Oncaldera, another wholly owned subsidiary of OPUS. In January 1999, Mr. Madani accepted the position of Chief Technology Officer & Chief Information Officer at iPayment, Inc. (NASDAQ: IPMT) as a result of iPayment purchasing vIstore and other e-commerce intellectual property from vIstore corporation (a wholly owned corporation of Mr. Madani founded in 1996.). At iPayment, Mr. Madani was responsible for the design and implementation of iPayment's Transaction Processing Gateway (TPG), iPayment's secure Internet gateway that interfaces with the merchant's web site to process credit card transactions, Ka-Chingg, web-based, low cost alternative designed to provide small merchants with a simple and more efficient way to enter and authorize credit card transactions in real-time without using a physical Point of Sale (POS) device, and VERIFY-MY-ID risk / fraud authentication software that can identify a credit card holder and their corresponding social security number.
4 comments:
I am afraid that alot of people have been ripped off by Madani. There is a case in LA right now against him. A bank claims that he stole around $3 mil from them.
On Wed, Mar 10, 2010 at 11:11 AM, anonymous wrote:
I invested $300,000.00 with Masih Madani for stock in Transysa Corp. and have never received any return. I feel this must be part of his scam. Can you give me more info regarding him and his companies?
I have an atm card through EBSG bank, there customer support number does not work, I cannot wothdrawal my money out of the atm. It has been 2 months now and I have emailed the company with no response.
I found this on the web, ebsg is not a bank
Appears to me that Mr. Madani has changed companies and banks to perpetrate his frauds. I was an ISO for him years ago and lost nearly $60,000 on behalf of a client. Not sure how it's possible to steal as much as is alleged without the ODFI's knowledge, but that's a matter for the courts. My guess is that Mr. Madani has left the US. And I know that fraud and theft of this magnitude (if it's true) will catch up to him at some time.
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