A Ponzi scheme is suing its own payment processor for $59.6 million, claiming theft. Irony doesn't get much thicker.

My Advertising Pays collapsed in September after stopping payouts to investors and announcing plans to restart the operation, wiping out existing investor positions. Now the scheme is fighting back—not for its victims, but for itself. On December 1st, My Advertising Pays filed suit against VX Gateway in Texas, alleging the payment processor stole $60 million in funds that rightfully belonged to the company and its customers.

The lawsuit names three corporate entities under the VX Gateway umbrella: VX Corp in Texas, VX Inc in Panama, and VX Limited in the United Kingdom. Two individuals are also named: Celia Dunlop and Timothy MacKay, both Texas residents. The multi-jurisdiction structure is classic money laundering infrastructure.

My Advertising Pays itself operates as a shell company registered in Anguilla with headquarters claiming to be in Mississippi. In court filings, the company describes itself as an "affiliate marketing site" where members buy "credit packs" to watch advertisements and earn money based on viewing activity. That's the sanitized version. The actual model is a Ponzi scheme nearly identical to Traffic Monsoon, which the SEC shut down earlier this year.

The relationship between My Advertising Pays and VX Gateway traces back to early 2014 through VX Corp. According to the lawsuit, VX Gateway didn't process payments directly but outsourced that work to third-party processors. When My Advertising Pays imploded and fled the United States in late 2015, VX Gateway responded by capping credit card transactions at $6,000.

By February 2016, Lynne Booth, My Advertising Pays' executive secretary, emailed Dunlop demanding answers about the restrictions. Dunlop's response came the same day. She said the cap came from VX Gateway's first processor and was permanent for that vendor. She added that VX Gateway had arranged a second processor at a higher transaction fee and would begin routing My Advertising Pays transactions through that channel instead.

The details matter because they reveal how the operation functioned. My Advertising Pays claims VX Gateway wrongfully retained assets belonging to the company and its investors across the United States and internationally. The suit seeks recovery of those assets.

What makes this case fascinating isn't the allegations of theft—it's who's making them. A scheme built on deception is now using the courts to recover money from someone else accused of deception. My Advertising Pays is asking a judge to return funds that, in many cases, were obtained through fraud in the first place.

The case exposes a murky underworld where Ponzi operators, payment processors, and offshore entities intersect. When schemes collapse, the money doesn't disappear—it gets trapped in payment processor accounts, creating disputes between fraudsters over who controls the stolen cash. VX Gateway's response to the lawsuit hasn't been disclosed, but one thing is certain: this fight is about recovering assets, not protecting victims. Those investors who lost money in My Advertising Pays won't see a dime regardless of who wins.

🤖 Quick Answer

What is My Advertising Pays and why did it collapse?
My Advertising Pays is a Ponzi scheme that ceased operations in September after halting investor payouts and announcing restructuring plans. The collapse eliminated existing investor positions, affecting numerous participants in the fraudulent investment program.

Who is being sued and what are the allegations?
My Advertising Pays filed a $59.6 million lawsuit against VX Gateway and related entities in Texas, alleging the payment processor unlawfully appropriated funds belonging to the company and its customers without authorization or justification.

Which entities and individuals are named as defendants?
The lawsuit targets VX Corp in Texas, VX Inc in Panama, and VX Limited in the United Kingdom. Additionally, two Texas residents—Celia Dunlop and Timothy MacKay—are named as individual defendants in the multi-jurisdictional legal action.

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