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New Fraud Case on Donald Kasdon? (2024)

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Many former high-risk merchants reportedly filed complaints against Donald Kasdon’s high-risk payment processor T1 Payments, claiming they were not paid what was owed to them. To gain a deeper understanding of the scenario, those who are interested in learning more about Donald Kasdon’s background may find it helpful to read up on his background.

Donald Kasdon: who is he?

Born and bred in Miami, Donald Kasdon is a well-known figure in the global high-risk payments industry. This industry operates in a challenging setting, frequently walking the fine line between legitimate business ventures and those that could be viewed as dubious or unlawful. 

The Kasdon family was in charge of running the T1 Payments Group, a high-risk payment system, until the business declared bankruptcy in the first few months of 2023. One of the more well-known ventures connected to the Kasdon family was this company.

Notably, businesses that handle transactions deemed riskier by traditional financial institutions sometimes find themselves in the financial context of high-risk payments. 

Businesses that fit into this category include those that have a history of chargebacks or are unclear about their legal position. This means that these companies have to deal with several challenging regulatory and compliance issues.

Something that stands out in this context is Pixxles Ltd., an Electronic Money Institution (EMI) with a Financial Conduct Authority (FCA) license. The founder and current manager of Pixxles Ltd. is Amber Fairchild, a former fiancée of Donald Kasdon. 

What’s interesting and raises questions about this EMI’s operations and economic viability is that it appears to be squandering a significant amount of money without having a clear or distinct business plan.

Donald Kasdon’s tale about this difficult and diverse profession is made more complicated by the nuances of the high-risk payment industry, as well as by the insolvency of T1 Payments Group and the mystery surrounding Pixxles Ltd.

To find out more about him, click on the links below:

Donald Kasdon: Allegations of US Bankruptcy and Fraud

T1 Payments, a US payment processor, is mired in litigation and controversy. Amber Fairchild, Debra Karen King (also known as Debra Karen Kaisen), and Donald Kasdon, the company’s executives, are charged with fraud and misconduct. To lower risks such as chargebacks and other commitments, T1 Payments withheld cash from many businesses and unexpectedly terminated their accounts.

Since T1 Payments did not deliver the withheld funds as promised, numerous firms have filed fraud lawsuits against them. T1 Payments LLC highlighted its legal difficulties in its early 2023 bankruptcy petition by disclosing ten lawsuits from Nevada and California.

T1 Payments LLC filed for bankruptcy in Nevada as a result of an increase in lawsuits and complaints. This action might have been taken to protect the company from lawsuits, but numerous creditors are now requesting repayment as a result of the bankruptcy process.

There are 1,500 creditors in all, and the great majority of them are former T1 Payments customers. A number of these clients have suffered large losses; four stand out in particular: New U Life Corporation, with over $5.2 million in outstanding funds; Hyper Sls Ltd, with approximately $350,000; G Com Pte Ltd, with $231,000; and D.N.G FZE, with $225,000. A loss estimated in the tens of millions of dollars has resulted from the bankruptcy procedures.

The man who is frequently regarded as the creative force behind T1 Payments, Donald Kasdon, has attempted to place the blame for the company’s financial difficulties on his mother, Debra Karen King, by asserting that she embezzled a sizeable portion of the funds that were under the company’s control. 

Owing to the intricate nature of the matter, uncertainties have been raised concerning the financial operations of the organization and the accountability of its principal stakeholders. As a result, a lot of merchants and creditors have looked to the bankruptcy procedure to try and get some sort of settlement or recompense.

The Pixxles Issues in the UK

Additionally, T1 Payments’ reach was increased to the United Kingdom through its affiliations with TGlobal Services Ltd. and T1 Payments Ltd. In June 2023, the first one had to be deleted from the Companies House database, while the second one was spared by successfully appealing. Amber Fairchild, who had previously been a director of TGlobal Services Ltd., founded Pixxles Ltd. 

The company that was identified as an electronic money institution in 2021 by the Financial Conduct Authority (FCA) under reference number 927960 has seen a significant volume of financial transactions. The source of this money has not been disclosed. However, it is undeniable that Pixxles is currently dealing with a mounting debt.

According to the company’s most recent filing with Companies House, it lost more than 1.1 million GBP in 2022. Compared to the deficit of 954,463 GBP noted the year before, this indicates an increase

Even with a massive infusion of 3.5 million British pounds in share capital, the company has already lost more than 3 million. Furthermore, Amber Fairchild’s financial interactions with Pixxles demonstrate continued responsibilities, although by October 2022, they had only slightly increased to 165,000 GBP.

Donald Kasdon: Allegations Against T1 Payments and Payvision

A court ruled in March 2021 that two individuals, Ray Akhavan, and Ruben Weigand, were accountable for a bank fraud scheme involving the Eaze firm. 

Using credit and debit cards to acquire marijuana worth over $150 million while pretending the transactions were for other items like dog supplies and face creams, this scheme deceived banks in the United States. 

This made it possible for the plan to dupe the financial organizations. Weigand received a fifteen-month sentence, and Akhavan received a thirty-month sentence. 

There are allegations that between 2016 and 2021, an ING subsidiary by the name of Payvision and its American partner, T1 Payments, participated in a similar scheme.

The core of the Eaze case was the fraudulent use of what are known as Merchant Category Codes (MCC) and a nation of origin to conceal the true identity and whereabouts of the merchants, as well as the kinds of goods that were being sold. 

It was concluded that this plan was not just money laundering but rather fraud against banks. 

The European Funds Recovery Initiative (EFRI) provided information indicating that Payvision and T1 Payments were payment processors involved in the drug trade in the United States. 

It is claimed that by creating foreign aggregators and altering MCC codes, T1 Payments and Payvision knowingly concealed the true nature of the transactions. This accusation is comparable to the one leveled against Eaze.

Donald Kasdon: US Court Proceedings

After filing cases in the US, some of the drug dealers claimed that T1 Payments and Payvision had defrauded them. The following lawsuits have been filed in the US against T1 Payments and/or Payvision by former clients of these companies as well as retailers engaged in the narcotics trade.

Since marijuana is illegal under federal law, MasterCard and Visa do not allow purchases of marijuana. When processing payments for marijuana or Kratom, some businesses abuse merchant codes; this is known as “miscoding” or “transaction laundering.” This gets around rules set forth by credit card companies.

A lawsuit (Case No. 2.20-cv-00411-KJD-VCF) over a Payment Processing Agreement for online cannabis product retailers at bionicbliss.com was filed on February 27, 2020, by Sarah Grauert and HANNAVAS Enterprises LLC. It looks like the case is regarding an early termination charge of $1 million that is under dispute.

GAIA Ethnobotanical LLC filed Nevada Court Case 2:22-cv-01046-CDS-NJK on July 2, 2022. The complaint states that the processing of Kratom payments commenced on August 12, 2020, and concluded on May 28, 2021. GAIA Ethnobotanical is suing for $0.4 million.

In 2015, the CEOs of T1 Payments and Payvision, Donald Kasdon and Rudolf Booker, created a payment mechanism. According to court documents, Kasdon was advised by Rudolf Booker regarding European companies for this endeavor.

Following its acquisition of Payvision in early 2018, ING is still in business with US pharmacies. In 2021 or so, ING withdrew from these activities. Following the resignation of Rudolf Booker and his co-founders in April 2020, Andre Valkenburg took over as CEO of Payvision, keeping the T1 Payments agreement through 2021.

T1 Payments and ING/Payvision battled while facing legal problems in the US. Donald Kasdon stated that Payvision’s U.S. activities and risks were regularly observed by ING. In December 2022, Kasdon submitted the bankruptcy petition for T1 Payments.

Donald Kasdon: Bankruptcy Decision Regarding T1 Payments

T1 Payments, formerly connected to Payvision, was sued for fraud by retailers. T1 Payments filed for bankruptcy in January 2023 in response to these allegations.

T1 Payments was led by Don Kasdon, his fiancée Amber Fairchild, and his mother Debra Karen King (now Debra Karen Kasdon). Pixxles Ltd., governed by the Financial Conduct Authority, was established following the bankruptcy of T1 Payments.

Donald Kasdon and his family, creditors of T1 Payments, are the subject of a noteworthy judicial decision. Creditors want their money back because they feel duped. This court decision exposes the customer service practices of T1 Payments.

I’m not sure how T1 Payments was run or what sparked the legal issues, but the court order might provide information on the company’s operations as well as the reasons behind the bankruptcy and fraud allegations.

Important Topics for Court Discussion

1. Steer clear of T1 Payments Stay

The involuntary stay, which temporarily protects debtors from lawsuits and collection efforts, was challenged by NULC.

In addition to pursuing its lawsuit against non-bankruptcy parties, NULC sought a ruling on additional T1 Payments.

The court found no justification for stay relief in this case. The bankruptcy process recognized the validity of NULC’s claim against T1 Payments. It is not essential to litigate T1 Payments separately.

2. Allowing Non-Debtors to Remain

The court restated that the automatic stay—a fundamental component of bankruptcy laws—is restricted to the assets of the bankruptcy borrower and their property, as well as assets that are included in the bankruptcy estate. Its goal is to protect the concerned property from any potential claims made by creditors while the bankruptcy process is underway.

The automatic stay does not prevent claims from being made against individuals who are not debtors in the bankruptcy proceedings. A stay relief is not necessary because NULC’s claims against non-debtors are not subject to the automatic stay. Therefore, NULC will be able to pursue its legal claims against the previously listed third parties despite the bankruptcy stay.

3. Sequence Relieving

NULC applied for a “comfort order” under Section 362(j) of the Bankruptcy Code as part of its bankruptcy proceedings. An order from the court assuring a party that they may proceed with a certain set of claims or processes is known as a consolation order.

Donald Kasdon: Case Wrap-Up

The court denied NULC’s motion to modify the automatic stay solely for judgment and its request for a comfort order. The decision effectively protected the bankruptcy process’s integrity by ensuring that subsequent external litigation on the same issue is unnecessary after a claim is accepted and approved within the bankruptcy. 

The achievement of this resulted from making sure that a claim, once acknowledged and approved during bankruptcy, could never be contested outside of bankruptcy. 

Put another way, this implies that the court’s ruling highlights how important the filing method is to ensure that any claims made against a bankrupt company are settled within the bankruptcy proceedings and not in a different courtroom.

Conclusion

Consequently, fraud accusations and legal challenges have resulted from Donald Kasdon and T1 Payments’ collapse. It is important to settle disputes during bankruptcy, as the bankruptcy court has noted in dismissing applications for relief from the bankruptcy stay and a comfort order. Due to the high-risk payment processing used by Donald Kasdon and his family, creditors have incurred significant financial losses and are currently involved in legal proceedings.

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