A Canadian payment processor is refusing to hand over nearly a million dollars it collected for a notorious online scheme, and it's about to learn an expensive lesson in court.

Peoples Trust processed credit card payments for MOBE, a company now under receivership after allegations of widespread fraud. When a judge issued a preliminary injunction ordering all payment processors to surrender fraudulently obtained funds, the Receiver came calling. Peoples Trust pushed back, claiming it wasn't bound by the order because it operated as a foreign company.

That refusal triggered a lawsuit filed in the Superior Court of Quebec. The Receiver wants its money back. Peoples Trust wants to keep it.

On September 17th, a Quebec judge agreed to recognize the preliminary injunction on a preliminary basis, setting the stage for a full hearing. Both sides will make their case on December 20th. The Receiver plans to testify in person—a trip expected to cost about $2,000. The potential recovery: roughly $925,000 USD.

The court approved the travel authorization within 24 hours.

This pattern plays out with predictable regularity. Payment processors facing receivership actions almost always dig in their heels, claiming they're exempt because they operate across borders or handle funds in transit. It rarely works. Courts consistently rule against them, and the funds get recovered.

In the years of tracking MLM-related litigation, payment processors have lost these fights with near-total consistency. Size doesn't matter. Location doesn't matter. Once a significant sum of money enters the picture, processors get steamrolled.

Peoples Trust appears headed for the same outcome.

In a separate development, the FTC has halted proceedings against Susan Zanghi after she submitted a settlement proposal. The agency is reviewing the proposal and indicated it could take up to 60 days to reach a decision.

🤖 Quick Answer

What is the dispute between MOBE's Receiver and Peoples Trust?
The Receiver seeks to recover approximately $925,000 that Peoples Trust, a Canadian payment processor, collected through credit card payments for MOBE, a company now under receivership due to fraud allegations. Peoples Trust initially refused to surrender the funds, claiming it was not bound by the preliminary injunction as a foreign company.

Why did Peoples Trust refuse to comply with the preliminary injunction?
Peoples Trust argued it was not legally obligated to follow the injunction ordering all payment processors to surrender fraudulently obtained funds because it operated as a foreign entity, not subject to Quebec's jurisdiction or court orders.

What legal action did the Receiver take against Peoples Trust?
The Receiver filed a lawsuit in the Superior Court of Quebec to compel Peoples Trust to return the disputed funds. On September 17th, a Quebec judge agreed

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