Problems continue at Los Angeles-based Allied Wallet, an online bankcard processor and multicurrency gateway established in 2002. The company, a multiyear Inc. 5000 honoree, has been the subject of several investigations involving the Federal Trade Commission and U.S. Department of Justice for alleged fraudulent activities. CEO Andy Khawaja and company officers Mohammad Diab and Amy Rountree, settled with the FTC in May 21, 2019, after admitting to defrauding customers. Khawaja, Diab and Rountree were assessed penalties of $110 million, $320,429.82 and $1 million, respectively.
In further developments, the DOJ unsealed an indictment against the company on Dec. 2, 2019, alleging that Allied Wallet used its proprietary gateway, digital wallet and merchant services in ways that violate AML guidelines. According to the indictment, Khawaja reportedly concealed more than $3.5 million in campaign contributions between March 2016 and January 2017 by covertly directing funds to political committees involved with the 2016 presidential election.