MOBE Receivership Denies Payment Processors Their Cut
Three payment processors tried to grab a slice of the MOBE receivership pie. All three walked away empty-handed.
Priority Payment Systems claimed $511,459. Stripe wanted $38,221. Peoples Trust sought $357,827. But when the MOBE Receiver examined their claims filed in April, each company found reasons to withdraw.
Priority Payment Systems backed down first. The Receiver pointed out two fatal problems: the company had already assigned its claim to another entity, and it had reached a settlement with the Receiver two years prior. That old deal came with a waiver barring Priority from seeking any payment from the Receivership Entities or the Receiver.
Stripe's claim collapsed for a different reason. The Receiver discovered that Stripe's documentation didn't support any claim against the Receivership Entities at all. The charges Stripe was chasing belonged to non-Receivership Entities owned or controlled by defendant Russell Whitney. Stripe had been pursuing the wrong targets entirely.
Peoples Trust faced the most serious problem. The Receiver accused the company of violating a court-ordered Temporary Restraining Order and Preliminary Injunction in Canada. Peoples Trust had continued using funds held as credit card reserves to reimburse itself for chargebacks—directly defying the court order. The Receiver went further, suggesting Peoples Trust might face liability for aiding and abetting MOBE's fraud. The company kept processing credit and debit card charges even though it knew, or should have known, MOBE was operating as a scheme. Peoples Trust withdrew its claim.
This January 6th order had opened the door for non-consumer creditors to file claims. The payment processors thought they qualified. They were wrong.
Meanwhile, consumer creditor claims tell a different story. Twelve consumers filed claims totaling hundreds of thousands of dollars. Most were rejected. Leonardo Dias Brame claimed $181,267. Barbara Roman sought $102,000. Glynis Smalley filed for $107,231. Jennifer Gligoric wanted $156,000. Coley Elwood Coggin Jr. claimed $105,154. The list goes on: Hermes and Piedad Maria Alberttis, Josmy Esteban Familia Ramirez, Josiah Edward Mascow, Analuz Martinez, Bruce A. Rosekopf, Jennifer Shipp, Efren Antonio Rivas Betancourt.
These claims were disallowed. Some filers appear to have simply misunderstood what constitutes a non-consumer creditor. Others may have been hoping luck would break their way.
The receivership moves at a glacial pace. No timeline exists yet for when actual MOBE victims will be permitted to file claims and potentially recover their losses.
🤖 Quick Answer
What happened to the payment processors' claims in the MOBE receivership case?Three payment processors—Priority Payment Systems, Stripe, and Peoples Trust—filed claims totaling over $907,000 against the MOBE receivership. All three subsequently withdrew their claims after the Receiver identified legal deficiencies, including prior assignments, existing settlement agreements with waiver provisions, and other disqualifying factors that prevented them from recovering funds.
Why did Priority Payment Systems withdraw its $511,459 claim?
Priority Payment Systems withdrew after the Receiver identified two critical issues: the company had previously assigned its claim to another entity, rendering it ineligible to pursue recovery, and a prior settlement agreement contained a waiver explicitly prohibiting Priority from seeking payment from the Receivership Entities or the Receiver.
What was the basis for Stripe's claim dismissal?
Stripe's $38,221 claim collapsed
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